What expenses can Starter Company Plus funding be used for?

By GrantHub Research Team · · Lire en français

What expenses can Starter Company Plus funding be used for?

Starter Company Plus is designed to help new and early-stage Ontario entrepreneurs pay for real startup costs. The program offers up to $5,000 in non-repayable funding. This money must be spent on approved business expenses that are directly connected to your business plan. Knowing which expenses are eligible—and which are not—can make your application stronger.

Below, you’ll find a clear guide to eligible and ineligible expenses for Starter Company Plus. Rules can sometimes vary by local Small Business Enterprise Centres, so always check with your local provider before applying.


Eligible expenses under Starter Company Plus

Starter Company Plus funding can cover up to 75% of eligible project costs, while you must contribute the remaining 25% in cash or in kind. Some delivery partners may have different requirements, so confirm the exact contribution needed with your local Small Business Enterprise Centre.

Equipment and tools

You can use Starter Company Plus funding to buy equipment needed for your business. Examples include:

  • Machinery or tools for production or service delivery
  • Computers, tablets, or point-of-sale systems
  • Special equipment specific to your industry

The equipment must be used mainly for business, not personal use.

Technology and software

Eligible technology costs often include:

  • Accounting or bookkeeping software
  • Industry-specific software licences
  • Website development and basic e-commerce setup

Ongoing subscription costs may be limited or capped, depending on your local delivery partner. Always check before including these in your budget.

Marketing and promotional costs

Starter Company Plus often supports early marketing expenses, such as:

  • Website design and branding
  • Logo design and professional photography
  • Digital ads, flyers, or signage

These costs must help you attract customers and launch your business, not promote you personally.

Training, certifications, and professional services

You may use funding for:

  • Certifications or licences required to operate
  • Industry-specific training
  • Legal or accounting services related to business setup

Training must directly support your ability to run the business.

Leasehold improvements and startup supplies

In some cases, funding can be used for:

  • Minor leasehold improvements
  • Initial inventory or supplies needed to begin operations

Approval depends on your business model and your local Small Business Enterprise Centre’s guidelines.

GrantHub’s eligibility matcher can help you check which expense categories are usually accepted by Starter Company Plus providers in your area.


Expenses Starter Company Plus funding cannot be used for

Some costs are always ineligible, even if they seem related to your business:

  • Personal living expenses (rent, groceries, personal bills)
  • Wages or salaries paid to yourself
  • Refinancing old debt
  • Major capital purchases not justified in your business plan
  • Expenses paid before you are approved

If an expense is not clearly connected to launching or growing your business, it will likely be rejected.


How expense approval works

Starter Company Plus is delivered by Small Business Enterprise Centres in each region. This means:

  • Eligible expenses may differ slightly depending on your location
  • All expenses must be listed in your approved business plan
  • You must provide receipts and proof of payment

The funding is non-repayable—you do not have to pay it back. Make sure you read your agreement carefully and understand the reporting and expense rules.


Common mistakes to avoid

  1. Including personal expenses
    Personal costs are a common reason for rejected budgets.

  2. Buying equipment before approval
    Expenses paid before approval usually cannot be reimbursed.

  3. Overestimating marketing spend
    Marketing is eligible, but your budget must be realistic and justified.

  4. Ignoring the 25% contribution rule
    You need to show proof of your own cash or in-kind contribution to qualify. The exact amount may vary by location.


Frequently Asked Questions

Q: Can Starter Company Plus funding be used to pay myself a salary?
No. Owner wages and personal income are not eligible expenses under Starter Company Plus.

Q: Can I use Starter Company Plus to buy a laptop?
Yes, if the laptop is needed for your business and is included in your business plan.

Q: Is inventory an eligible expense?
Initial inventory may be eligible, depending on your business type and local program rules.

Q: Do I need receipts for all expenses?
Yes. You must provide receipts and proof of payment for all approved expenses.

Q: Can I use the funding to expand an existing business?
Yes. Starter Company Plus supports starting, expanding, or buying a small business, as long as you meet the program criteria.


Next steps

Starter Company Plus funding can help you launch or grow your business if you plan your expenses carefully and follow the rules. GrantHub tracks hundreds of active grant and loan programs across Canada, so you can see how Starter Company Plus fits with other funding options for your business.

See also:

  • What Business Expenses Are Eligible Across Canadian Grants and Loans?
  • Repayable vs Non-Repayable Business Funding in Canada: Program Examples Explained
  • Small Business and Regional Development Grants: Eligible Expenses

Understanding what expenses are allowed can help you build a stronger application and avoid mistakes.

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