15 Small Business Grants in Canada for Startups

If you're building a startup in Canada, grants and incentives are one of the few ways to buy time without giving up equity. The hard part isn't that "there's no money," it's that programs are fragmented, rules change, and most government websites read as if a committee of exhausted lawyers wrote them.

This guide gives you the programs that matter, who's they're for, how much they pay, and how to avoid wasting weeks on the wrong thing.

How Small Business Grants Work in Canada

Quick map of the landscape:

• Grants = Money you don't repay. Usually tied to a specific project: R&D, hiring, export, etc.
• Loans & "loan-like" support = You repay, but terms are softer than banks (better rates, grace periods, lighter collateral).
• Tax credits (like SR&ED) = You spend first, then get a portion back at tax time. For many startups, this behaves like a retroactive grant.

You'll see three main levels:

• Federal / national: available across Canada.
• Provincial / regional: Ontario, BC, Quebec, and Alberta all have different tools.
• Demographic / sector-specific: youth founders, Black founders, health tech, export-focused startups, etc.

You can often stack multiple programs (for example, IRAP + SR&ED + a provincial wage subsidy), as long as you stay under the maximum percentage of public funding allowed for that project. Always check each program's "stacking" rules.

Canada-Wide Federal & National Programs

These are the workhorse programs most innovative startups should at least look at.

1. NRC IRAP: Industrial Research Assistance Program

Good if: You're a tech or product company with real R&D going on, not just routine implementation.

Who it's for
Incorporated, profit-oriented Canadian SMEs (generally 1-500 employees) working on genuine R&D or new technology with clear commercial potential.

What you get
Non-repayable contributions that can cover a big share of technical salaries and subcontractors for a defined innovation project. In practice, projects often range from tens of thousands up to the high six figures; some larger projects can go higher.

Key conditions

• You have (or are ready to hire) technical staff on payroll.
• You can describe a real R&D project with milestones, risks, and a commercialisation plan.
• You work with an Industrial Technology Advisor (ITA) who decides if you're a fit.

Status
IRAP is a long-running, flagship innovation program with competitive, usually rolling intakes through NRC advisors. Funding levels and priorities are updated regularly, so always check the official NRC IRAP page or speak with an ITA before you build your budget around it.

2. SR&ED: Scientific Research & Experimental Development Tax Incentive

Good if: You write code, build hardware, or do any systematic technical work beyond "normal engineering."

Who it's for
Corporations, individuals, and partnerships conducting eligible R&D in Canada, including software, hardware, engineering, and other scientific or technological development.

What you get

• A deduction that reduces taxable income; and/or
• An investment tax credit (ITC) on part of your R&D spend, which may be refundable (cash) or non-refundable.

For Canadian-controlled private corporations (CCPCs), there is an enhanced refundable federal credit rate (commonly up to 35% of eligible SR&ED expenditures on the first spending bracket, currently up to about $3M per year). Above that limit, or for non-CCPCs, lower / non-refundable rates apply.

Key conditions

• Your work must meet the CRA SR&ED test:
  • You're trying to resolve a technological uncertainty,
  • Using a systematic, investigative or experimental approach,
  • Not just building standard features with known methods.
• You must track time, costs, and technical work carefully so you can support your claim if reviewed.

Status
SR&ED is a long-standing federal tax incentive claimed through your corporate tax return. Rates, limits, and admin rules do change, so always confirm the latest guidance on the CRA website or with a tax professional before filing.

3. Mitacs Accelerate

Good if: You want a sharp grad student or postdoc to work on a real research/innovation problem inside your startup.

Who it's for
Canadian companies and organisations (for-profit or non-profit) that can partner with a graduate student or postdoc and a faculty supervisor at a Canadian university or college.

What you get

• Standard internship "units" where a student or postdoc works on your project for 4-6 months.
• Typical model:
  • Your contribution: $7,500 per unit
  • Total research award: $15,000 per unit
  • At least $10,000 goes to the intern as stipend/salary; the rest can support project costs.

There are variants with slightly different contribution levels and higher-value options for postdocs and multi-intern projects.

Key conditions

• A defined research/innovation project (e.g., new algorithm, prototype, serious data analysis, technically deep market or UX work).
• An academic supervisor at a Canadian post-secondary institution.
• One or more eligible interns (grad students, postdocs, sometimes undergrads or recent grads, depending on stream).
• If you're a student founder, Accelerate Entrepreneur lets you use Mitacs to fund work on your own incorporated startup via an approved incubator.

Status
Mitacs Accelerate is a national program with applications accepted year-round. Funding models and streams evolve, so always check the current Mitacs Accelerate page.

4. CanExport SMEs

Good if: You're ready to sell abroad and need help paying for the first serious push into new markets.

Who it's for
Canadian SMEs that want to enter or grow in new international markets where they currently have little or no sales. Typical criteria include:

• For-profit, incorporated in Canada (or LLP/co-op)
• 1-500 FTEs
• $100,000-$100 million in annual revenue
• Active CRA business number

What you get

• A cost-sharing grant that normally covers up to 50% of eligible international business development costs.
• Successful applicants typically receive $10,000-$50,000 per project, up to about $50,000 per application, for things like:
  • Trade shows and missions
  • Market research and in-market consulting
  • Translation and adaptation of marketing tools
  • Some IP, certification, or regulatory costs tied to new markets

Key conditions

• The target country must be "new" or underdeveloped for you (limited or no recent sales there).
• You need a clear export plan and budget for that market.
• There's usually a minimum project size, since the program only funds a share of costs.

Status
CanExport SMEs is a recurring federal program run by the Trade Commissioner Service with intake periods that open and close based on budget. Contribution rates and eligible activities change over time, so always read the current CanExport SMEs page before applying.

5. Canada Summer Jobs (CSJ)

Good if: You want low-cost junior help over the summer and can create a real learning experience.

Who it's for

• Not-for-profits, public-sector employers, and
• Private companies with ≤50 FTEs

They want to hire youth aged 15-30 for summer roles.

What you get

• Up to 100% of the provincial/territorial minimum wage for not-for-profits.
• Up to 50% of the minimum wage for private and public sector employers.

Key conditions

• Jobs must be full-time summer positions with meaningful work, not coffee runs.
• You apply months in advance; positions run in the following summer.

Status
CSJ runs annually as part of the federal Youth Employment and Skills Strategy. Employer applications usually open in the fall for jobs starting the next year; always check the official CSJ page for this year's dates and eligibility.

6. Futurpreneur Canada: Core Start-Up Program

Good if: You're a young founder and banks look at you like you're speaking Martian.

Who it's for
Founders aged 18-39 anywhere in Canada who have launched or are about to launch a business.

What you get

• Up to $60,000-$75,000 in collateral-free, equity-free financing, usually a mix of Futurpreneur + BDC.
• Up to two years of 1:1 mentorship, plus planning tools and resources.

Key conditions

• You need a basic business plan and cash-flow forecast.
• Personal credit and background are reviewed, but it's generally more flexible than banks.

Status
Futurpreneur is a long-running national program with rolling intake. Loan amounts, interest rates, and age rules can shift, so always confirm details on Futurpreneur's site before you quote numbers to your co-founder.

7. Black Entrepreneurship Loan Fund (Canada)

Good if: You're a majority Black-owned business that's ready to grow and needs meaningful debt capital.

Who it's for
Majority Black-owned businesses operating in Canada at various stages, delivered through partners such as FACE and financial institutions like BDC and commercial banks.

What you get

• Loans up to $250,000 to start or grow a business.
• Connected programs such as the Black Entrepreneurship Program offer advisory support and complementary services.

Key conditions

• Majority Black ownership.
• Viable business plan and the ability to service the loan.
• Standard credit and risk assessments via delivery partners.

Status
The Loan Fund is a core pillar of the federal Black Entrepreneurship Program, delivered through ongoing intake by partner organisations. Terms and delivery partners evolve, so always read the current guidelines on the BDC/FACE and federal program sites.

8. NRC IRAP: Youth Employment Program (YEP)

Good if: You're an innovative SME that wants to hire a recent grad but needs help with salary.

Who it's for
Innovative Canadian SMEs that want to hire post-secondary graduates aged roughly 15-30 into technical or business roles tied to innovation.

What you get

• Wage subsidy up to about $30,000 per graduate for a 6-12 month full-time placement.

Key conditions

• Your business must meet IRAP's SME criteria (incorporated, profit-oriented, innovation-focused).
• The role must support R&D, product, engineering, market analysis, or commercialisation, not generic admin.
• The candidate must meet Youth Employment and Skills Strategy criteria (age, citizenship/residency, first-time in such a program).

Status
YEP is an established IRAP stream under the federal Youth Employment and Skills Strategy. Intakes and budgets can vary, so always check the official NRC IRAP YEP page or talk to an ITA before promising anyone a job based on it.

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Provincial & Regional Grant Programs

Now to the province-level tools that can stack on top of federal support.

9. Ontario - Starter Company Plus

Good if: You're an Ontario founder who needs a small grant + training to get moving.

Who it's for
Ontario residents 18+ who are starting, buying, or expanding a small business and can commit to working in it full-time. Delivered through local Small Business Enterprise Centres (SBECs).

What you get

• Opportunity to pitch for a non-repayable grant of up to $5,000.
• Structured business training (often ~15 hours or more).
• Mentoring and advisory support for several months.

Key conditions

• You complete mandatory training and mentoring.
• You submit a business plan and cash-flow forecast.
• Grants are competitive; not everyone in a cohort gets funded.

Status
Starter Company Plus is a recurring provincial program delivered in local cohorts (often several times per year). Exact dates and criteria vary by region, so always check your local SBEC's page for current intake info.

10. British Columbia: Innovate BC "Innovator Skills Initiative" (ISI)

Good if: You're a BC tech or innovation-driven company that wants to hire students or recent grads, especially from under-represented groups.

Who it's for
BC-based employers in tech or tech-related roles who want to hire a student or recent grad, with a strong focus on candidates from under-represented groups.

What you get

• A wage subsidy of up to $10,000 per employee to supplement salary and benefits for a placement of at least four months.
• Employers may receive multiple grants per program year (subject to program caps).

Key conditions

• The role must be tech or tech-related.
• The candidate must meet ISI eligibility (student, recent grad, and often self-identifying as under-represented).
• Funding is first-come, first-served and tends to go fast.

Status
ISI is a recurring program delivered by Innovate BC with defined yearly intakes. Grant value has consistently been "up to $10,000 per hire," but specifics and quotas change; always check the latest ISI guidelines before promising anyone a subsidised role.

11. Quebec: Impulsion PME / Fonds Impulsion (Investissement Québec)

Good if: You're a Quebec tech startup raising a pre-seed or seed round.

Who it's for
Young, innovative, high-growth Quebec startups, especially in tech and life sciences. The historic Impulsion PME matching program has been transformed into Fonds Impulsion, a provincial venture capital fund focused on early-stage tech.

What you get

• Equity or quasi-equity investment, typically in the $250,000-$2 million range per company, with the possibility of follow-on rounds.
• The fund is targeting dozens of companies over roughly a decade, continuing Impulsion PME's role of filling the seed-stage gap.

Key conditions

• Strong growth potential and innovation.
• Typically tied to an institutional or private funding round (it's co-investment, not a solo cheque).

Status
Fonds Impulsion is an active early-stage VC vehicle backed by Investissement Québec. It isn't a "grant," but for Quebec startups closing a round, it's a major piece of non-bank capital. Always check IQ's site or speak with the team/your lead investor about the current criteria.

12. Alberta Innovates: Accelerating Innovations into CarE (AICE)

Good if: You're a health or life sciences startup in Alberta that needs clinical/market validation money.

Who it's for
Alberta-based SMEs and researchers building health or life sciences technologies that need evidence, trials, and validation to reach real-world use.

What you get

• Staged funding streams; for example, AICE-Validate and AICE Market Access can provide up to about $300,000 per project, often covering up to 50% of eligible costs over roughly 24 months.

Key conditions

• Must be Alberta-based.
• Clear commercialisation path and milestones (product-market fit, regulatory route, clinical evidence, etc.).
• Competitive, two-stage application processes are common.

Status
AICE is an active umbrella program with several streams. Names, caps, and themes (e.g., healthy ageing) evolve, so always read the specific AICE stream guide on Alberta Innovates' site before banking on a number.

13. Campus Alberta Small Business Engagement (CASBE)

Good if: You're an Alberta SME teaming up with a post-secondary researcher to adopt new tech.

Who it's for
Alberta SMEs that want to work with Alberta universities or colleges on emerging technology projects, leveraging NSERC Alliance or ARD grants.

What you get

• Leveraged funding to match NSERC, with up to about $150,000 per year from Alberta Innovates for one or two years (combined NSERC + AI support can reach the mid-six figures over the project).

Key conditions

• Collaborative R&D project with an Alberta post-secondary institution.
• Alignment with provincial research and commercialisation priorities.

Status
CASBE is an ongoing Alberta Innovates program that opens and closes intakes periodically. The program guide and intake status are updated on Alberta Innovates' site; always check there to confirm whether applications are currently being accepted.

14. Regional Economic Growth Through Innovation (REGI): Business Scale-up & Productivity

Good if: You're a growing SME with a clear scale-up plan in a specific region.

Who it's for
Growth-oriented SMEs in specific regions (Atlantic, Prairies, Northern, Southern Ontario, Quebec, BC) delivered through the various regional development agencies (RDAs).

What you get

• Repayable contributions (often interest-free) to help scale and commercialise new products, adopt technology, or expand capacity, frequently covering a significant portion of eligible project costs.

Key conditions

• Strong business case with measurable economic impact: jobs, exports, productivity gains.
• Projects are typically capital- or growth-intensive, not just "we need runway."

Status
REGI is a national framework run by RDAs. Specific Business Scale-Up & Productivity calls and focus areas vary by region and year, so always check your regional RDA site (e.g., PrairiesCan, ACOA, FedNor, PacifiCan) for current intakes and guidelines.

15. Strategic Innovation Fund (SIF): For Later-Stage Moonshots

Good if: You're running a major, capital-intensive project with national impact, think "later-stage, not seed."

Who it's for
Companies (including SMEs) leading large, transformative projects, often with total eligible project costs well into eight or nine figures, in major clean-tech, manufacturing, life-sciences, or digital infrastructure plays.

What you get

• Big-ticket federal support has historically been a mix of grants and repayable contributions to build plants, deploy large-scale tech, or run major demonstration projects.

Key conditions

• Clear national-level impact: jobs, exports, supply chains, decarbonization, critical technologies.
• Heavy-duty application and due-diligence process; usually aligned with other investors and government strategies.

Status
Canada has shifted from the original Strategic Innovation Fund toward a Strategic Response Fund-style model, but the idea is the same: large public support for major innovation projects.

For most early-stage founders, this is "good to know exists, not for this year." Always rely on current Innovation, Science and Economic Development (ISED) guidance for exact program names and criteria.

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Demographic-Based & Targeted Funding

You've already seen the main ones, but it's useful to group them:

• Youth founders (18-39)
  • Futurpreneur Core Start-Up Program: collateral-free financing + mentorship.
  • Youth-focused wage subsidies: CSJ, IRAP YEP, and provincial programs to hire young talent.
• Black entrepreneurs
  • Black Entrepreneurship Loan Fund: up to $250,000 in loans plus advisory support via partners.
• Under-represented talent in tech
  • Innovate BC, Innovator Skills Initiative: up to $10,000 per hire.
  • CSJ & IRAP YEP: wage subsidies for youth and recent grads in meaningful roles.

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How to Check Deadlines, Intakes, and Stacking Rules

You don't need a grant whisperer. You need a 20-minute research habit.

1. Start from official pages

Search:
[Program name] + Government of Canada
[Program name] + [province]

Avoid SEO-spam "grant lists" as your primary data source.

2. For every program page, find three things

• Who can apply (eligibility)
• How much (grant vs loan, % of costs, caps)
• Dates/intake (rolling vs fixed deadlines)

3. Check stacking rules

Many guides explicitly say what percentage of project costs can come from all public sources combined ("up to 75% public funding," etc.). If you're stacking IRAP + CSJ + a provincial wage subsidy on the same salary, you must stay under that cap.

4. Subscribe and bookmark

Federal and provincial programs open and close quickly, and budgets get reshuffled. Use email alerts, RSS, or even a monthly calendar reminder to skim:

• NRC IRAP
• Mitacs
• Trade Commissioner / CanExport
• Your province's innovation agency
• Your regional development agency

5. Keep a simple internal tracker

Even a Notion or Google Sheet with program name, link, max $, type (grant/loan/tax credit), deadline, and owner on your team is enough to avoid chaos.

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Step-by-Step: How to Prepare a Strong Grant Application

You don't need a consultant. You do need to respect the process.

1. Decide what you actually need money for

One specific project:

• Build MVP
• Validate a health device
• Run pilots
• Do export trips

Not "general company stuff."

2. Match the project to 1-3 programs

• R&D project → IRAP + SR&ED, maybe Mitacs.
• Hiring junior talent → CSJ, ISI, IRAP, YEP.
• Export push → CanExport SMEs (when intake is open).
• Health-tech validation → AICE.

3. Read the applicant guide once, properly

It's boring. Read it anyway. It tells you exactly:

• What evaluators care about
• What gets you disqualified

4. Talk to the program contact

IRAP ITAs, provincial officers, and many program managers will tell you bluntly if you're a fit. That 15-minute call can save you weeks of guessing.

5. Build a clean project plan and budget

• 12-24 month timeline
• Real milestones (prototype v1, pilot, first export contract)
• A budget that separates salaries, subcontractors, travel, and equipment

6. Line up supporting docs

• Short pitch deck or 2-3 page project overview
• CVs of key team members
• Basic financials/forecast
• Any letters of support from customers, partners, or institutions

7. Don't submit at 23:58

Some programs are literally first-come, first-served (ISI is a classic). Others crash under deadline stampedes. Submitting a day early is a competitive advantage.

The difference between funded and unfunded startups is often not "idea quality," it's whether they bothered to play the game properly.

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Where Evalyze Fits In Your Funding Mix

Grants and incentives won't replace fundraising:

• Grants are slower and project-specific.
• Equity funding is faster (when it works) and flexible.

The smart pattern for Canadian founders:

1. Use grants and tax credits (IRAP, SR&ED, Mitacs, provincial programs, wage subsidies) to:
   • Build product
   • Validate the problem/solution
   • Get early customers
2. Once you have data and a story that isn't just "we have an idea," use Evalyze.ai to:
   • Stress-test your deck with an AI pitch-deck analyser
   • Find the right investors for your stage, sector, and geography

Public money gives you proof; private money gives you runway. Evalyze exists to make that second step less painful once you've done the hard work with the first.

FAQ

1. Can I get a grant if I’m pre-revenue?
Yes, many programs (IRAP, Mitacs, Futurpreneur, ISI, and some provincial grants) are designed exactly for pre-revenue or early-revenue companies. What matters more is a clear project, a credible team, and a realistic plan.

2. Do I need to be incorporated?
For most of the bigger programs (IRAP, SR&ED, REGI, AICE), yes, you generally need a Canadian corporation. For Futurpreneur and some small local grants, you can move from idea-stage to incorporation as part of the process, but you’ll incorporate before money lands.

3. Can I stack multiple programs on the same project?
Often yes, but with limits. For example, IRAP might fund a portion of R&D salaries; SR&D can sometimes still apply to your net cost; wage subsidies may layer on top. You just need to respect each program’s maximum public funding percentage and disclose any other support.

4. Are there grants just for “starting a business”?
Pure “free money to start anything” is rare. Starter Company Plus and some municipal programs come closest, but they still want a plan and sometimes matched funds. Most serious programs fund projects (build X, hire Y, export to Z), not generic startup costs.

5. How do grants fit with raising from angels or VCs?
Grants de-risk your company: they pay for R&D, pilots, and key hires so you can show traction and data. Investors usually love this as long as your company isn’t 100% dependent on grants and you’re not locked into weird restrictions. When you’re ready to raise, your grant history becomes part of your “unfair advantage” story.