145 Ontario Small Business Grants & Funding (2026)

Starter Company Plus is Ontario’s flagship small business grant program, providing up to $5,000 in non-repayable funding plus business training and mentorship. The program is delivered through Ontario’s network of 47 Small Business Enterprise Centres (SBECs) across the province — each SBEC manages its own intake schedule and selection process, so timing and availability vary by location. Eligible applicants must be 18 or older, an Ontario resident, and starting or expanding a business that has been operating for fewer than 5 years. You’ll complete a business training program and develop a business plan as part of the process (in practice, the training is useful even if you don’t receive the grant — it covers financial projections, marketing plans, and competitive analysis). While $5,000 may seem small, it’s genuinely non-repayable and comes with mentorship that many recipients value more than the money itself.

The OITC provides an 8% refundable tax credit on qualifying scientific research and experimental development expenditures incurred in Ontario, up to a maximum of $3 million in eligible expenditures per year. Unlike the enhanced federal SR&ED credit (limited to CCPCs), any corporation performing R&D in Ontario can claim the OITC. The credit is fully refundable — you receive cash back even if you owe no corporate tax. The OITC’s real power is in stacking: combined with the federal SR&ED credit, an Ontario CCPC can recover 43% of R&D costs (35% federal + 8% provincial) on the first $3 million. You claim the OITC through your corporate tax return using Schedule 508 — there is no separate application process. (Source: Ontario Ministry of Finance [5])

The OIDMTC is one of the most generous digital media incentives in North America, providing a 35% refundable tax credit on eligible expenditures for small corporations (25% for others) developing interactive digital media products in Ontario. Eligible products include video games, educational software, interactive apps, and digital content requiring user interaction. The product must be developed primarily for commercial exploitation, and the corporation must carry on business through a permanent establishment in Ontario. Eligible costs include Ontario labour expenditures and qualifying marketing and distribution expenses (capped at the lesser of $100,000 or the eligible labour amount). A key requirement: the product must be certified by Ontario Creates. This certification process typically takes 4–8 weeks and should be started early in your development cycle. (Source: Ontario Ministry of Finance [6])

Ontario’s Manufacturing Investment Tax Credit provides a 10% refundable tax credit on eligible investments in buildings, machinery, and equipment used in manufacturing or processing in Ontario. The credit is available to Canadian-controlled private corporations (CCPCs) and applies to investments of up to $20 million, yielding a maximum annual credit of $2 million. Eligible expenditures include: the cost of constructing or acquiring buildings for manufacturing, and the cost of acquiring machinery or equipment for manufacturing or processing. The credit is phased out for CCPCs with taxable capital between $50 million and $100 million. Claim it through your corporate tax return — no separate application required.

Summer Company provides up to $3,000 to students aged 15–29 who want to start and run a summer business. The program includes mentorship from local business leaders and hands-on entrepreneurial experience. Students receive up to $1,500 at the start and up to $1,500 upon completing the program. Applications typically open in spring for the summer season. It’s delivered through the same SBECs that run Starter Company Plus.

IRAP (Industrial Research Assistance Program) is the single most important technology funding program for Ontario SMEs. Administered by the National Research Council, IRAP provides up to $1 million in non-repayable contributions for technology innovation projects, plus access to an Industrial Technology Advisor (ITA) who provides ongoing strategic guidance. Ontario has the highest concentration of IRAP-funded companies in Canada, anchored by the Toronto–Waterloo corridor. To apply, contact your local ITA — there is no online application portal. The ITA will assess your project’s innovation potential, technical feasibility, and commercial viability before recommending it for funding. Approval typically takes 3–6 months (in practice, most approvals fall in the $150,000–$500,000 range, with $1 million reserved for larger multi-year projects). IRAP funding is not taxable income. (Source: National Research Council Canada [4])

SR&ED is Canada’s largest single R&D incentive program, distributing approximately $3.2 billion annually. CCPCs (Canadian-controlled private corporations) earn a 35% refundable investment tax credit on the first $3 million of qualified R&D expenditures. Other corporations earn 15% non-refundable. Eligible activities must involve systematic investigation through experiment or analysis — routine engineering, market research, and quality control do not qualify. Ontario companies that claim SR&ED should also claim the OITC (8% provincial credit) for a combined 43% recovery. Critical: maintain contemporaneous documentation (lab notebooks, project plans, meeting minutes, test results) throughout the year. The CRA audits approximately 20% of SR&ED claims; retroactive documentation is a major red flag. Beginning April 2026, the CRA will offer a new pre-claim approval process to reduce audit uncertainty. (Source: CRA SR&ED Program [7])

CanExport SMEs provides up to $50,000 in non-repayable funding for export market development activities. Eligible costs include trade show participation, market research, legal and IP fees in the target market, travel for business development, and marketing materials in the target market language. The maximum was reduced from $99,999 to $50,000 for the 2026–27 fiscal year. Ontario’s diverse manufacturing and technology sectors make it the province with the highest number of CanExport applicants. Assessment takes approximately 60 days. A key requirement: your project must demonstrate “incrementality” — activities you would not have undertaken without CanExport funding. (Source: Trade Commissioner Service [8])

Futurpreneur provides up to $60,000 in startup financing for entrepreneurs aged 18–39, comprising up to $20,000 from Futurpreneur and up to $40,000 from the BDC. This is a loan, not a grant — but it comes with up to 2 years of mentorship from experienced business leaders, and the terms are significantly more favourable than commercial lending. No collateral is required for the Futurpreneur portion. Ontario-based applicants access one of the strongest mentor networks in the country, particularly in the GTA and Ottawa regions.

Step 1: Identify Your Funding Fit

Determine your business stage and project type first. Pre-revenue startups: contact your local SBEC for Starter Company Plus. Tech companies: reach out to your regional IRAP Industrial Technology Advisor. Exporters: apply to CanExport through the Trade Commissioner Service. For tax credits, confirm your CCPC status with your accountant.

Step 2: Check Eligibility Thoroughly

Read the full program criteria on the official government page. Key checks: business incorporation status, employee count (<500 for IRAP), CCPC status (required for enhanced SR&ED and Manufacturing ITC rates), revenue thresholds, and whether the program is currently accepting applications. Many Ontario businesses miss eligibility because they assume sole proprietorships qualify for all programs.

Step 3: Build Your Application Package

Assemble: articles of incorporation, 2–3 years of financial statements (projections for startups), project budget with line items, technical description of innovation, and vendor quotes for capital expenditures. For SR&ED, begin maintaining contemporaneous R&D documentation from day one — don’t reconstruct it at tax time.

Step 4: Submit and Stack

Apply to your primary program first, then layer secondary programs. Disclose all government funding in every application. For tax credits, file with your corporate tax return. For OIDMTC, get Ontario Creates certification before claiming. For IRAP, your ITA will guide you through the submission and milestone-reporting process.

Step 5: Track, Report, and Retain Records

After approval, set up tracking systems before spending. IRAP requires milestone reports and financial claims matching your budget. SR&ED requires contemporaneous documentation throughout the year. Keep all receipts organized by program for 6–7 years — CRA may audit retroactively. For all programs, submit final reports within 60–90 days of project completion.