❓ Frequently Asked Questions About Canadian Business Grants

A: Over $5 billion in grant funding is available through 118+ federal, provincial, and municipal programs for Canadian businesses. This includes funding for technology innovation, exports, clean technology, agriculture, and more.

A: A grant is non-repayable funding that you don't have to pay back if you meet the program requirements. A loan must be repaid with interest. Many Canadian programs offer grants, while others like BDC and EDC offer loans and financing.

A: Yes, most business grants are considered taxable income in Canada and must be reported on your business tax return. However, the funds are only taxed as profit if they exceed your business expenses. Consult a tax professional for specific advice.

A: Yes, you can apply for multiple grants simultaneously as long as you meet each program's eligibility criteria. However, you must disclose other funding sources in your applications and ensure you're not duplicating funding for the same expenses.

A: Check each grant's specific eligibility criteria, which typically include: business size (employees/revenue), industry sector, geographic location, years in operation, and project type. Use GrantCompass's quiz tool to find grants matching your profile.

A: Common required documents include: business plan, financial statements (2-3 years), incorporation documents, project proposal, budget breakdown, quotes from suppliers, resumes of key personnel, and proof of matching funds if required.

A: Matching funding means you must contribute a portion of the project costs. For example, a 50% matching grant covering up to $100,000 means the grant pays $100,000 and you pay $100,000 for a $200,000 project.

A: Yes, many grants are available specifically for non-profits, including Canadian Heritage programs, Community Futures funding, and various social innovation funds. Some business grants also accept non-profit applicants.

A: Grant approval times vary significantly: SR&ED tax credits can take 60-120 days, IRAP typically takes 6-8 weeks, while smaller municipal grants might be approved in 2-4 weeks. Federal programs generally take longer than provincial or municipal ones.

A: Common reasons include: incomplete applications, missing documentation, ineligible expenses, weak business case, insufficient matching funds, missed deadlines, and applying to the wrong program for your needs.

A: While not required, professional grant writers can improve your chances of success, especially for complex federal programs. They typically charge 10-20% of the grant value or a flat fee. For smaller grants, you can often apply yourself with careful preparation.

A: Popular startup grants include: IRAP (up to $1M), Canada Digital Adoption Program, Futurpreneur Canada programs (up to $60K), SR&ED tax credits, and various provincial programs like Ontario's Starter Company Plus ($5K).

A: The Scientific Research and Experimental Development (SR&ED) program provides tax credits up to 68% for eligible R&D activities. It's Canada's largest source of R&D funding, returning over $3 billion annually to businesses.

A: Yes, programs like Canada Summer Jobs (100% wage subsidy), various provincial Job Grants (up to $10,000 per employee for training), and Youth Employment programs offer funding for hiring and training employees.

A: Indigenous businesses can access the Aboriginal Entrepreneurship Program, Indigenous Services Canada funding, Futurpreneur Indigenous Entrepreneur Startup Program, and many mainstream programs that offer additional support for Indigenous applicants.

A: Yes, many grants cover equipment purchases, including IRAP, various agriculture programs, and manufacturing grants. Typically, equipment must be directly related to the funded project's objectives.

A: Technology, clean technology, manufacturing, agriculture, and life sciences receive significant grant funding. However, grants are available for all industries including retail, services, tourism, and creative industries.