Toronto Small Business Grants — The Complete 2026 Guide

Ontario's flagship micro-grant program administered through the City of Toronto's Small Business Enterprise Centres (SBECs). Applicants complete 10 to 12 weeks of business training, develop a business plan, and commit a minimum $1,250 co-investment before receiving the $5,000 grant. Accepts new businesses and existing businesses under 5 years old. Sole proprietors, partnerships, and incorporated businesses all qualify. Multiple cohorts run each year.

The Toronto Employment and Revitalization Incentive covers interior renovations to commercial spaces — electrical, plumbing, flooring, HVAC, and accessibility upgrades. The $20,000 base grant plus $4,000 AODA accessibility bonus makes this one of the most generous municipal renovation grants in Canada. Non-profits and home-based businesses are not eligible. Funds are disbursed as reimbursement after work is completed. With commercial rents in Toronto up 142% since 2019, TERI significantly reduces the cost of establishing a physical presence.

A 50% matching grant for exterior storefront improvements including signage, awnings, lighting, and structural repairs. Targeted at street-facing businesses in established commercial districts. Applications are processed on a first-come first-served basis — funding runs out quickly each cycle. Can be stacked with TERI (which covers interior) since eligible expenses do not overlap.

EDGE provides a grant equal to a percentage of the property tax increase resulting from eligible development or improvements. The standard rate is 60% over 5 years, but as part of Toronto's tariff response measures, the rate has been temporarily increased to 100% until December 2027. This is particularly valuable for businesses making significant capital investments in commercial properties. The enhanced rate effectively eliminates the property tax increase from renovations for the first two years.

The Toronto Arts Council received a $2 million budget increase for 2026, funding project grants, operating support, and the Creative Communities program (up to $15,000). While primarily for arts organizations, creative businesses including design studios, media production companies, and cultural entrepreneurs can access project-specific funding. The TAC is separate from Ontario Creates and offers faster turnaround for Toronto-based applicants.

Ontario's program for student entrepreneurs aged 15 to 29 provides a $3,000 award to start and run a business over the summer months. Includes mentorship and basic business training. A stepping stone for young Toronto entrepreneurs before they age into Starter Company Plus. Strong completion rates and less competitive than federal programs.

Toronto's game studios, app developers, and interactive media companies can claim a 40% refundable tax credit on eligible Ontario labour expenditures through the OIDMTC. There is no cap on labour costs, making this one of the most valuable credits for Toronto's growing digital media sector. Administered by Ontario Creates. The product must be interactive digital media — websites, mobile apps, video games, and educational software all qualify. Film and television do not qualify (separate credits exist for those).

The OMMITC was enhanced from 10% to 15% in May 2025, providing a refundable tax credit on investments in manufacturing and processing equipment for Ontario businesses. Toronto's remaining manufacturing sector — particularly food processing, advanced manufacturing, and life sciences — benefits from this credit. Stacks with federal accelerated depreciation under the Capital Cost Allowance.

Ontario's Life Sciences Innovation Fund provides co-investment capital of up to $500,000 for pre-seed life sciences companies. The $15 million fund was renewed in the 2025 Ontario Budget. Toronto is Canada's largest life sciences hub with MaRS Discovery District housing hundreds of biotech and medtech startups. LSIF fills a critical gap between academic research funding and Series A venture capital.

IRAP is the single most valuable non-repayable grant for Toronto tech companies. NRC has a dedicated Toronto-area office with multiple Industrial Technology Advisors serving the GTA. The program covers up to 80% of eligible R&D salaries and contractor costs. Average first-time contributions range from $75,000 to $200,000, though established firms can receive up to $1 million. Approximately 15% of companies that engage with an ITA receive funding. The critical step is the initial ITA meeting — request one through the NRC website. IRAP can be stacked with SR&ED on the remaining 20% you pay out of pocket.

The Scientific Research and Experimental Development tax credit gives Canadian-controlled private corporations (CCPCs) a 35% refundable investment tax credit on the first $6 million of eligible R&D expenditures. The average small business SR&ED claim is approximately $102,000. Toronto businesses benefit from a large pool of SR&ED consultants who specialize in claim preparation. Documentation is critical — begin tracking technical uncertainties, experiments, and eligible time from day one. SR&ED is filed with your annual tax return and can be claimed retroactively up to 18 months after your fiscal year-end.

FedDev Ontario's flagship program for scaling southern Ontario businesses. BSP provides conditionally repayable contributions (forgivable loans) from $125,000 to $10 million, with the average contribution at $658,000. Repayment is conditional on meeting agreed-upon performance targets — if you hit your milestones, the loan may be forgiven. Intake 2 opened February 26, 2026. This is the largest single source of non-dilutive capital available to Toronto businesses, but competition is fierce and applications require detailed project plans with job creation projections.

For Toronto businesses expanding into international markets, CanExport provides up to $50,000 at a 50% cost-share for market development activities including trade shows, market research, legal fees, and marketing materials for new export markets. The February to May 2026 application window is currently open. Toronto's proximity to the US border and Pearson International Airport makes this particularly strategic for GTA exporters. Stacks well with provincial trade support programs.

Important: CSBFP is a loan, not a grant. The government guarantees 85% of the loan, which makes banks willing to lend to businesses that would otherwise be declined. Up to $1.15 million available — $500K for equipment and leaseholds, $150K for intangible assets, $500K for real property. The 2024–25 fiscal year was a record year with average loans of $294,000. For Toronto businesses needing capital for physical space (given $37.20/sq ft downtown rents), CSBFP is often the most practical financing option.

The Black Entrepreneurship Program provides loans from $10,000 to $250,000 specifically for Black Canadian entrepreneurs. Renewed with $189 million through 2030. Toronto has the largest Black business community in Canada, and BEP addresses the well-documented financing gap. The approval rate ranges from 4.2% to 14.4% depending on the stream. BEP funding can be stacked with Futurpreneur's Black Entrepreneur Startup Program (BESP) and DMZ's Black Innovation Fellowship for a comprehensive funding stack.

MaRS is North America's largest urban innovation hub. Free membership provides access to advisors, workspace, and the MaRS ecosystem. The Capital Program selects 20 to 30 startups per year for intensive growth support. MaRS Investment Accelerator Fund (IAF) provides $500K seed funding as a separate entity. The no-cost, no-equity membership makes MaRS the lowest-barrier entry point to Toronto's tech ecosystem. Located at 101 College Street in the Discovery District near the University of Toronto campus.

DMZ consistently ranks among the world's top university-based incubators. The Pre-Incubator and Incubator programs provide workspace, cloud credits, legal services, mentorship, and investor connections worth $500K to $1M in-kind value in exchange for 2.5% equity. DMZ's Black Innovation Fellowship awarded $400,000 in 2025 alone. The program is particularly strong for SaaS, fintech, and marketplace startups. Located at 10 Dundas Street East, connected to Toronto Metropolitan University (formerly Ryerson).

CDL at the Rotman School of Management provides pure mentorship from experienced entrepreneurs, scientists, and investors — no cash and no equity. The program runs in 8-week cycles with objective-based milestones. With 20+ global locations and $25 million in federal investment, CDL has become the premier program for deep-tech ventures in AI, quantum computing, and space technology. The Toronto flagship location benefits from direct access to the University of Toronto's AI research hub, including the Vector Institute.

Founded in 1990, TBDC is Toronto's longest-running business incubator. The Soft Landing program provides $500K in technology credits for international companies establishing operations in Toronto. TBDC also partners with Toronto Public Library's Business Inc. program, providing free business advisory services through library branches across the city. Particularly valuable for immigrant entrepreneurs and international companies entering the Canadian market.