Grants & Loans

Grants

Grants are a non-repayable form of funding which allow businesses to receive contributions for specific projects, with no expectations of repayment. The majority of grants cover only a portion of costs, with the remaining costs covered through a combination of other government funding, in-kind funding, and other sources. Generally, there are limitations on how grants and other forms of government assistance can be combined or stacked.

Why Should I Apply for Grants?

Though grant applications are typically highly competitive, many businesses opt to submit applications considering the significant benefits for successful applicants.

How Can I Ensure my Application is Successful?

Businesses interested in applying for grants must consider how their project fits in with program priorities in order to write a successful application. Successful applicants must also complete due diligence in terms of meeting the terms of the original agreement and providing proof that funds were spent as specified.

Loans

Loans are a repayable form of funding wherein businesses receive contributions towards projects for a set time period, at which point they must repay the contribution. Loans may cover a portion of costs, or they may cover the entirety of project costs.

Why Should I Apply for Loans?

While loans can seem less advantageous compared to grants, loans received from government sources, as opposed to banks and private lenders, tend to have favourable repayment terms, along with low- to no-interest options. Some loans also offer partial loan forgiveness when specific conditions are met by the company. These conditions allow businesses to take on larger projects on faster timeframes than

How Can I Ensure my Application is Successful?

Businesses applying for loans should review the eligibility and application processes set out by the funding body. Oftentimes, companies need to meet certain criteria in terms of years operating, annual revenues, and numbers of employees in order to be eligible.

Business Growth

Many programs are available to facilitate business growth and expansion, through funding for facility modifications and upgrades, equipment and machinery rentals and purchases, skills training and development, market expansion and exports, new product development, and process efficiency improvements. Businesses undertaking activities related to business growth can gain a significant competitive advantage in their sector, contributing to economic growth.

Leveraging government funding can result in significant benefits to companies, in allowing for more rapid, lower risk business expansion. Key programs include:

• Southwestern Ontario Development Fund (SWODF)
• Eastern Ontario Development Fund (EODF)
• CanExport Innovation
• CanExport SMEs
• Regional Development Agency programming, including Funding for Businesses through FedDev (Ontario) and Business Scale-Up and Productivity through PacifiCan (BC) and PrairiesCan (Alberta, Manitoba, and Saskatchewan).

Innovation

With funding for expenses including new technology development, advancement, and adoption, improved processes, innovation and R&D funding can assist businesses undertaking risks by reducing the initial costs of technology development, adaptation, and advancement; new product development and modification; and process improvements. Investments in innovation, technology, and R&D are considered critical to maintaining Canada’s competitiveness in various sectors on a global scale, while encouraging innovative Canadian companies to remain in Canada, while incentivizing foreign businesses to complete R&D work in Canada.

Many businesses choose to apply to loan and grant programs in addition to SR&ED, with programs including:

• Strategic Innovation Fund (SIF)
• Industrial Research Assistance Program (IRAP)
• Innovation for Defence and Security Program (IDEaS)
• Innovative Solutions Canada (ISC)
• Provincial programming offered through agencies such as Alberta Innovates, Ontario Centres for Excellence (OCI), and the BC Centre for Innovation and Clean Energy, in addition to the Regional Development Agencies.

Workforce Development

Funding is also available to companies looking to expand their business through hiring new employees, and training and upskilling new and existing employees. Funding for these activities can be found through smaller wage subsidies, or larger grants, with programs including:

• EMC WILWorks
• Talent Opportunities Program
• Canada Summer Jobs
• Student Work Placement Programs
• Canada Job Grant
• Industrial Research Assistance Program (IRAP) Youth Employment Program

Industry-Specific Programming

While some funding is industry-agnostic, meaning businesses from a number of different sectors can apply for funding, other funding is industry-specific, in areas such as agriculture and agri-food, clean technology, medicine and health, film and television, digital media, and more. These programs may cover costs related to business development, innovation, workforce development, or a combination of these activities.

Agricultural and Agri-Food Programs:

• Sustainable Canadian Agricultural Partnership (Sustainable CAP)
• Agricultural Clean Technology (ACT) Program: Adoption and Research & Innovation streams
• Canadian Food Innovation Network (CFIN)
• Protein Industries Canada (Global Innovation Cluster)

Life Sciences

• CQDM Quantum Leap
• MEDTEQ+

Automotive and Manufacturing

• Ontario Vehicle Innovation Network (OVIN)
• NGen (Advanced Manufacturing Global Innovation Cluster)

Natural Resources

• Investments in Forest Industry Transformation (IFIT)
• Ocean Cluster (Global Innovation Cluster)

Digital Technology

• DIGITAL (Global Innovation Cluster)
• AI (Global Innovation Cluster)

Film and Television:

• Canada Media Fund: Linear programming
• Creative BC: Domestic Motion Picture programming
• Ontario Creates Film Fund

Digital Media:

• Ontario Creates Interactive Digital Media (IDM) Fund
• Canada Media Fund: Interactive Digital Media programming
• Creative BC Interactive + Digital Media

Additional Programming and Resources

Contact us for more information on the above programs, and learn more about additional programs your business might be eligible for.