Federal funding for an Ontario small business comes in three main forms: repayable loans, project contributions often called grants, and tax credits.
Most business “grants” are cost-shared contributions: you fund part of the project, and some contributions must also be repaid.
Choose by eligible activity, business stage and cash-flow timing before comparing headline funding amounts.
Official program pages checked on . The seven options below had a current application, advisory or tax-claim route when checked. Recheck before applying or committing costs.
A loan can help pay for an asset before it earns revenue. A contribution supports a defined project under an agreement. A tax credit is claimed through the tax system and should not be treated as cash available to launch tomorrow. Our Ontario small business grants guide provides the broader context for comparing these funding types.
1. Canada Small Business Financing Program: lender-delivered financing
The Canada Small Business Financing Program (CSBFP) shares lending risk with financial institutions. It is financing, with repayment obligations, rather than a grant paid directly by government. The lender reviews the proposal and decides whether to approve it.
Who it is for: Canadian small businesses and startups. ISED’s official page sets the gross annual revenue ceiling at $10 million and excludes farming businesses. Being eligible for the program does not settle the lender’s credit decision.
What it funds: Eligible commercial property, equipment, leasehold improvements, intangible assets and working capital through term loans; lines of credit cover working capital. Check the rules for your specific purchase before signing a contract.
Where to apply: Approach a bank, credit union or caisse populaire through the official CSBFP application guidance. It gives a current lender application route without an intake deadline. Our CSBFP guide for business owners explains the distinction between program eligibility and loan approval.
2. BDC financing: loans for business investment
The Business Development Bank of Canada offers business loans for different investment needs. BDC financing belongs in your borrowing comparison: the amount, repayment structure and eligibility depend on the financing product and the business assessment.
Who it is for: Businesses registered in Canada that have recorded sales. BDC’s general financing page says its financing is generally available after at least 12 months of revenue generation; review the particular loan’s requirements rather than assuming an idea-stage business qualifies.
What it funds: The financing catalogue covers needs including equipment, technology, commercial real estate and working capital. Match the proposed investment to the relevant loan and show how the business will service the debt.
Where to apply: Use the eligibility assessment and application steps on BDC’s official financing page, which currently provides an online route. Compare repayment and cash-flow implications using our business loans in Canada guide. An initial assessment is not an approval.
3. Futurpreneur: startup loans with mentorship
Futurpreneur’s Startup Program combines repayable financing with mentorship for young entrepreneurs. It is a national nonprofit offering, including financing from BDC, rather than a general federal startup grant. The mentorship is part of the offering, not simply an optional funding directory.
Who it is for: Canadian citizens or permanent residents living in Canada, aged 18–39 when applying. The eligibility page covers businesses not yet operating or operating full time for 24 months or less, with products or services ready for market. Ownership, credit and sector requirements also apply.
What it funds: Starting or buying an eligible business. Loan proceeds cannot refinance existing debt. Prepare a clear startup budget and distinguish launch spending from any personal financial obligations.
Where to apply: The official Startup Program page offers a contact form and a submission route when your complete business plan and 24-month cash flow are ready. Review its linked eligibility criteria first; no intake deadline was stated on the offering page checked.
4. FedDev Ontario: contributions for established business projects
FedDev Ontario’s funding-for-businesses stream supports innovation, productivity and expansion in southern Ontario. Its funding rules describe interest-free, repayable contributions with cost sharing. This is project funding requiring other financing, rather than unrestricted money for ordinary operations.
Who it is for: Growing and established for-profit businesses operating in southern Ontario. The eligibility page requires at least three years of incorporation and registration and a minimum of five full-time employees. Check the detailed employee-count rules with the agency if your workforce is near its limits. This stream does not cover every Ontario location.
What it funds: Eligible late-stage product development, technology adoption, equipment and process improvements, and expansion into new markets. Basic research is excluded. The project needs measurable business and regional economic benefits.
Where to apply: The official FedDev Ontario application page explicitly states that applications are being accepted. It requires financial statements, projections, a work plan and supporting documents. Read the linked funding rules before setting the project start date or committing expenditure.
5. Canada Summer Jobs: a targeted hiring subsidy
Canada Summer Jobs (CSJ) provides wage subsidies for quality summer employment for eligible youth aged 15–30. It addresses a specific hiring need, rather than funding an owner’s startup costs or any position at any time of year.
Who it is for: Eligible employers, including private sector organizations with 50 or fewer full-time employees across Canada. For the 2027 round, employers generally need two years of operation by December 31, 2026; the official eligibility guide specifies a narrow exemption for qualifying previous recipients.
What it funds: Approved summer employment meeting the program’s job, participant and workplace requirements. Build a real job description, supervision arrangements and a payroll budget that covers your share.
Where to apply: Follow the official CSJ applicant guide. As published there, the application period runs from October 27, 2026 to December 3, 2026, at 11:59 pm (Pacific Time). This intake is for jobs in 2027. Verify the guide again before submitting.
6. SR&ED: tax incentives for eligible research
Scientific Research and Experimental Development (SR&ED) tax incentives can provide an income deduction and an investment tax credit for qualifying work in Canada. Refundability depends on the claimant’s circumstances. This is a tax claim, not a competition for a startup grant.
Who it is for: Eligible corporations, individuals, trusts and partnerships conducting qualifying work. CRA’s eligibility guidance requires scientific or technological advancement through systematic investigation using experiment or analysis. Routine improvements are not automatically eligible because a business calls them innovation.
What it covers: Allowable expenditures associated with eligible SR&ED work, potentially including wages, materials and contracts under the applicable rules. Keep technical evidence alongside cost records; neither a promising product nor a large development budget establishes eligibility by itself.
Where to claim: Start with CRA’s official SR&ED claim instructions. The current claim route explains forms, expenditure calculations, documentation and reporting deadlines. Check the deadline applicable to your claimant type and tax year with your accountant.
7. NRC IRAP: innovation advice and potential project funding
The National Research Council’s Industrial Research Assistance Program (NRC IRAP) provides advice, connections and, in some cases, financial support. Engagement typically starts with advice and referrals before funding. Contacting an advisor or being invited to propose a project does not guarantee money.
Who it is for: Incorporated, for-profit businesses operating in Canada with up to 500 full-time-equivalent employees, developing and commercializing innovative technology-driven products or services. Sole proprietorships and partnerships do not meet the stated business-structure requirements.
What it funds: Research and development of innovative technology-based products and services and other innovation activities. The official page excludes ordinary operating costs, purely commercial activities, work outside Canada and research with limited commercialization potential.
Where to start: Follow the contact steps on NRC IRAP’s official financial support page. A senior executive contacts the program for assessment and potential advisor engagement. No general intake deadline was stated on the page checked.
How to choose by stage and need
Use this shortlist to decide which official guide to read first. Each match remains subject to the program’s detailed eligibility rules and assessment.
| Stage | Need | Starting point |
|---|---|---|
| Idea | Launch preparation | Develop the plan and budget first; Futurpreneur becomes relevant when the business is ready for market. |
| Startup | Equipment or launch costs | CSBFP; Futurpreneur where owner and business eligibility fit. |
| Established | Equipment or technology | CSBFP or BDC; FedDev for qualifying southern Ontario projects. |
| Established | Summer hiring | Canada Summer Jobs, subject to employer and job eligibility. |
| Established | Export expansion | FedDev for qualifying expansion projects; BDC for relevant business investment. |
| Startup or established | R&D | NRC IRAP for eligible incorporated innovators; SR&ED for qualifying work and expenditures. |
Next, separate the project’s total cost from the amount a program might cover. List your own cash, proposed borrowing and other assistance. Check when eligible spending can begin and whether payment follows expenditure. An award reimbursed later cannot pay today’s supplier invoice unless the business has bridging cash.
The application constant: a plan and projections
Across most financing and project applications, expect to explain the business, the spending and the numbers. Futurpreneur explicitly asks for a plan and cash flow; IRAP requests a business plan and financial statements; FedDev requires projections and a work plan.
Prepare one consistent account of customers, pricing, costs, milestones and funding sources, then adapt it to the application. A hiring subsidy needs a credible job and payroll plan. A tax claim needs evidence of completed eligible work and expenditure. A business plan does not replace those records, establish eligibility or promise approval.
Frequently asked questions
Are there grants to start a business in Ontario?
Few options in this federal shortlist are pure startup grants. CSBFP, BDC and Futurpreneur provide repayable financing; FedDev uses cost-shared repayable contributions for qualifying established businesses. CSJ targets summer wages, while SR&ED concerns eligible research expenditure. Start with the activity and your contribution capacity.
Can I combine programs?
Sometimes, but every program has its own stacking and disclosure rules. Report all proposed and received assistance and check the rules for the same costs. CRA specifically explains that other government R&D assistance, including IRAP, can reduce the SR&ED investment tax credit. Confirm the combined treatment before budgeting.
Do I need a business plan to apply?
Often for loans and innovation financing, although the format varies. Futurpreneur and IRAP explicitly request one. Other applications ask for project plans, projections or job details instead. Follow the actual document checklist and ensure the narrative, budget and financial assumptions agree.
Where do I check a program is still open?
Use the official program links above, then read the current application page, applicant guide and intake notice. Check the year, closing time and time zone. If status is unclear, contact the administrator before spending time on an application. A directory listing or an older blog post is not proof that applications remain open.