Indigenous Economic Diversification Grants: Who Is Eligible in Ontario?

By GrantHub Research Team · · Lire en français

Indigenous Economic Diversification Grants: Who Is Eligible in Ontario?

Many Indigenous entrepreneurs and communities in Ontario want to grow beyond a single industry or income stream. Indigenous economic diversification grants are designed to help with this goal. The main program in Ontario is the Indigenous Economic Development Fund (IEDF) — Economic Diversification Grants Program, run by the provincial government.

This guide explains who can apply, what types of projects qualify, and important things to check before you start your application.


Eligibility Criteria

The IEDF — Economic Diversification Grants Program supports a wide range of Indigenous-led economic activities in Ontario. The main factors are who you are and what your project plans to do.

Eligible applicants include:

  • Indigenous entrepreneurs
  • Indigenous-owned businesses, including small and medium-sized enterprises (SMEs)
  • Indigenous communities, such as First Nations, Métis, and Inuit communities
  • Indigenous organizations, including economic development corporations and not-for-profits

Applicants must be based in Ontario or deliver projects that directly benefit Indigenous communities in Ontario.


Qualifying Projects

Your project must help diversify Indigenous economies. This means creating new ways to earn income, moving into new industries, or making the economy stronger for the future.

Types of projects that qualify:

  • Start-up financing for new Indigenous-owned businesses
  • Expansion projects for existing Indigenous SMEs
  • Employment and skills training programs that support economic development
  • Projects that create new job opportunities in Indigenous communities
  • Collaborative projects between Indigenous communities and private-sector partners
  • Financing and capacity-building initiatives that help businesses grow over time

Even if your project relies on a single resource or industry, it may still qualify if it aims to reduce economic risk or reach new markets.


How to Apply and How Funding Works

When you apply, remember that the IEDF Economic Diversification program provides repayable funding. This means:

  • You must repay the funding over time
  • Repayment terms depend on your project and financial situation
  • The funding is more flexible than a regular loan

Many Indigenous economic programs use this structure because they are more flexible than regular loans.

Before you apply, check that:

  • Your business or organization is Indigenous-owned or Indigenous-led
  • The project supports economic diversification
  • All activities happen in Ontario
  • You can show economic and community benefits, such as job creation or skills development
  • You are ready for repayable funding, not a one-time grant

Applications are reviewed based on economic impact, feasibility, and how well they fit the program’s goals.

If you want to compare funding options, GrantHub’s eligibility matcher helps you filter Indigenous programs by province, funding type, and business stage.


Common Mistakes to Avoid

Thinking the funding is a regular grant
Some applicants don’t realize the IEDF is repayable funding. Make sure you include repayment in your budget.

Submitting a project with no new growth
Projects must diversify or strengthen the economy. If you are just continuing current operations without change, you may not qualify.

Not showing Indigenous ownership or leadership clearly
You must show clear Indigenous control in your application and documents.

Waiting too long to check intake timing
The program is open now, but intake periods and priorities can change. Always check the current details.


Frequently Asked Questions

Q: Is the Indigenous Economic Development Fund a grant or a loan?
The Economic Diversification program gives repayable funding, not a fully non-repayable grant. Repayment terms depend on your project.

Q: Can Indigenous start-ups apply in Ontario?
Yes. Indigenous-owned start-ups and early-stage SMEs can apply if their project supports economic diversification.

Q: What expenses can the funding cover?
Funding can cover business financing, training costs, employment programs, and other economic development activities tied to your project.

Q: Is there a fixed application deadline?
The program is open, but intake periods may change. Always check current timelines before applying.

Q: Is IEDF funding taxable?
Tax treatment depends on your business structure and how you use the funds. An accountant who knows government funding can help with this.

Q: Where can I find more Indigenous funding programs in Canada?
GrantHub tracks hundreds of grant and funding programs, including Indigenous-focused options across Canada.


  • What Business Expenses Are Eligible Across Canadian Grants and Loans?
  • Futurpreneur and BDC Loans for Indigenous Startups: Terms and What to Expect
  • How to stack grants and loans without violating funding rules

Next Steps

Indigenous economic diversification grants in Ontario can help build long-term, community-driven growth if your project fits the criteria. GrantHub tracks hundreds of active grant and funding programs across Canada, including options for Indigenous businesses and organizations. Use GrantHub to find programs that match your business profile and funding needs.

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