Grants and Funding available for Northern Canada Businesses in 2025

Grants for businesses in Northern Canada can provide a vital boost to entrepreneurs operating in the North. Business owners in regions like Yukon, the Northwest Territories (NWT), Nunavut, and Northern Ontario face unique challenges such as remote locations, higher costs of operations, and limited local markets. To counter these challenges, various government agencies and programs offer business grants in Northern Canada. These grants range from small seed funding for startups to large contributions for major economic projects. In this comprehensive guide, we will explore the landscape of grant opportunities available, highlight key funding agencies (such as CanNor, Prosper NWT, and the Northern Ontario Heritage Fund Corporation), and provide region-specific details. We’ll also cover typical eligibility criteria, application processes, tips for securing grants, common mistakes to avoid, and address some frequently asked questions for Northern Canadian business grants.

Overview of Available Grant Opportunities in Northern Canada

Northern Canada benefits from multiple levels of grant support aimed at stimulating economic development and supporting local businesses. Both federal and regional bodies provide economic development grants in Northern Canada. At the federal level, regional development agency grants are available through organizations like the Canadian Northern Economic Development Agency (CanNor) in the territories and FedNor in Northern Ontario. These agencies fund projects that diversify the economy, create jobs, and encourage innovation in northern communities. Provincial and territorial governments also offer their own grant programs tailored to local needs – for example, the Northern Ontario Heritage Fund Corporation (Ontario) and various business support funds in Yukon, NWT, and Nunavut.

Grant opportunities cover a broad spectrum of needs. There are grants for businesses in Northern Canada that help entrepreneurs launch new ventures, such as startup funding programs, as well as grants that assist existing businesses in scaling up or adopting new technologies. Some programs target specific priorities like digital adoption, workforce development, or sector-specific growth (for instance, tourism, mining, or agriculture in northern regions). Often, grant funding in the North is accompanied by mentorship or advisory services to help businesses succeed. Overall, the available grants can be categorized into a few main types:

• Startup and Small Business Grants: Funding to help new businesses get off the ground or assist small companies with early-stage growth. These often come from territorial programs or special initiatives for entrepreneurs.

• Expansion and Development Grants: Larger grants or contributions to expand facilities, purchase equipment, or develop new products and markets. Regional agencies like CanNor and NOHFC fall in this category, supporting projects that will have significant economic impact.

• Innovation and Digital Adoption Grants: Programs designed to encourage businesses to modernize, go online, or implement new technology. For example, there are specific digital adoption grants in the NWT and Yukon, and innovation streams under various funds.

• Sectoral and Community Grants: Funding targeted at key industries (such as heritage, arts, renewable energy, or tourism) or community-based economic projects. These may be provided by territorial governments or special funds and often aim to improve economic opportunity in remote communities or for underrepresented groups.

With this variety of grants and funders, business owners in Northern Canada have multiple avenues to seek financial support. In the sections below, we’ll delve into the key agencies and programs and break down what’s available by region.

Key Agencies and Programs Supporting Northern Business Grants

Several major agencies drive the funding landscape in Northern Canada. Understanding these organizations and their flagship programs is important for any entrepreneur seeking a business grant in Northern Canada. Here are the key players:

Canadian Northern Economic Development Agency (CanNor)

The Canadian Northern Economic Development Agency (CanNor) is the federal government’s regional development agency dedicated to the three territories: Yukon, NWT, and Nunavut. CanNor provides economic development grants in Northern Canada through various contribution programs. One of CanNor’s main programs is the Inclusive Diversification and Economic Advancement in the North (IDEANorth) initiative. IDEANorth offers substantial funding (often termed contributions) for projects that align with the Pan-Territorial Growth Strategy, focusing on priorities like economic diversification, business scale-up, Indigenous economic development, and infrastructure.

• CanNor Grants and Contributions: CanNor typically funds medium to large projects that have broad economic benefits. For example, businesses and organizations can obtain funding for projects such as establishing new industry facilities, expanding capacity, innovative product development, or skills training programs. For-profit enterprises can often receive up to 50% of project costs covered (often structured as repayable contributions for businesses), while non-profits, Indigenous organizations, or community governments may get up to 80% of costs covered as non-repayable funding. There is usually a high maximum threshold – CanNor may contribute up to $6,000,000 per project in some cases, reflecting the scope of projects they support.

• Application Process: CanNor usually invites proposals through calls for Expressions of Interest (EOI) on an annual or semi-annual basis. Applicants need to outline their project’s goals, community impact, and alignment with CanNor’s priorities. Projects that promote diversification (e.g. developing new sectors beyond resource extraction), improve critical infrastructure, or provide economic opportunities for Northerners (especially Indigenous communities) are viewed favorably. The process is competitive and often involves detailed review. Business owners considering CanNor funding should be prepared with a strong business case and possibly letters of support from local partners or communities. While CanNor’s programs are geared toward larger initiatives, small businesses can benefit indirectly (for instance, through local economic development projects or by partnering in bigger initiatives). Additionally, CanNor has previously administered special programs (like the Northern Business Relief Fund during emergency situations), but these are time-limited. Overall, for entrepreneurs with a project of significant scale or community impact, CanNor is a key agency to know.

Northern Ontario Heritage Fund Corporation (NOHFC)

For businesses in Northern Ontario, the Northern Ontario Heritage Fund Corporation (NOHFC) is a primary source of funding support. NOHFC is a provincial government initiative under Ontario’s Ministry of Northern Development. Its mandate is to spur economic growth and diversification across Northern Ontario (which includes areas like Algoma, Sudbury, Thunder Bay, Kenora districts, and other northern regions of the province). Business grants Northern Canada often include NOHFC programs since Northern Ontario faces similar development challenges as the territories.

• NOHFC Funding Programs: NOHFC offers several funding streams tailored to different stages and needs of a business or project. The programs have been modernized under the Invest North Program, which has multiple streams:

  • Invest North – Launch: A program aimed at entrepreneurs starting a new business in Northern Ontario. It provides conditional contributions (a type of grant) of up to 50% of eligible project costs, to a maximum of $200,000. This can help finance the startup costs of launching a business (capital investments, construction or renovations, equipment, marketing, etc.). Launch funding requires the owner to invest at least 15% of the project cost themselves and to commit to operating the business full-time.

  • Invest North – Grow: This stream supports expansion of existing Northern Ontario businesses. It offers a combination of grants and potentially loans. For example, a common option is a conditional grant up to 20% of project costs (capped at $400,000) and in some cases an additional loan for further costs, or purely a larger loan. The maximum support under the Grow stream can reach $1,000,000 (often structured as a loan for half the project cost). This funding can be used for scaling up production, building new facilities, buying major equipment, or other growth-related capital expenses. The Grow program accepts applications in competitive rounds quarterly, so businesses need to have a robust business plan to compete for funding.

  • Invest North – Innovation: A stream focusing on innovative projects (such as developing new products, adopting advanced technologies, or research and development in the North). This stream can fund up to 50% of project costs with higher caps (sometimes $500,000 or more, depending on the project, and certain innovation projects have seen contributions up to $2,000,000). It’s meant to encourage tech development and commercialization in Northern Ontario.

  • Invest North – People and Talent: NOHFC also supports workforce development. For instance, the Northern Ontario Internship Program provides funding to employers to hire recent graduates in Northern Ontario, covering a portion of the salary. This helps businesses afford new talent and gives young professionals experience in the region.

  • Community and Indigenous Funding: Although geared towards businesses, NOHFC also has programs for not-for-profit and community projects (e.g., cultural or recreational projects that have economic benefits). These might not be direct business grants, but they contribute to a healthier business environment in the North by improving communities and infrastructure.

• Using NOHFC as a Business: If you are a business owner in Northern Ontario, NOHFC can be a game-changer for financing large initiatives. The application process is online through the NOHFC portal, and you should be prepared with a detailed business plan, financial projections, and information on how your project will create jobs or economic activity. NOHFC often disburses funds as the project incurs costs (you typically submit expense claims to get reimbursed). Keep in mind that some businesses are not eligible for NOHFC grants (for example, strictly retail or consumer-service businesses like restaurants and retail shops are often excluded from the main streams, unless there’s a unique economic impact). The focus is on projects that bring new money into the region or fill gaps in the market. Also note that NOHFC funding may be conditional – for instance, if you receive funding and then sell the equipment or move the business out of the North within a certain timeframe, you might have to repay some funds. Overall, NOHFC is a cornerstone for Northern Ontario entrepreneurs looking for substantial funding support to launch or expand their operations.

Prosper NWT (Northwest Territories Business Development and Investment Corporation)

Prosper NWT is the newly rebranded business development agency in the Northwest Territories. Formerly known as the Business Development and Investment Corporation (BDIC), Prosper NWT provides financing and support to NWT businesses with the goal of regional prosperity. While BDIC traditionally offered loans and some business services, Prosper NWT has introduced new grant initiatives, particularly focusing on digital technology adoption for small businesses. This reflects a push to help NWT businesses modernize and reach broader markets online.

• Digital Adoption Grants (CDAP and ADAPT Fund): One of the most notable programs under Prosper NWT is its digital support funding. There are two linked programs:

  1. Canada Digital Adoption Program (CDAP) – Grow Your Business Online: This is a federal micro-grant program being delivered regionally. In NWT, Prosper NWT administers CDAP grants which offer up to $2,400 to small businesses to help them adopt digital tools (such as setting up e-commerce or improving their web presence) and provides support from e-commerce advisors. CDAP is a Canada-wide initiative, but in NWT the intake and support are through Prosper NWT rather than through a southern service provider. Eligibility for CDAP typically requires the business to be for-profit, consumer-facing, with at least one employee or a minimum revenue ($30,000+) and the business must commit to using the new digital strategy.

  2. Accelerate Digital Adoption Projects for Tomorrow (ADAPT) Fund: This is an NWT-specific fund created to supplement the CDAP grant. Launched in 2024, the ADAPT Fund provides up to $2,600 per NWT business to further support their digital adoption projects. Essentially, an NWT business can stack the ADAPT grant on top of the $2,400 from CDAP, effectively getting up to $5,000 (or slightly more) in total grant money for digital upgrades. In fact, Prosper NWT has also arranged additional top-up funding for businesses outside the major centers, recognizing that remote communities may need more support. In total, when combining CDAP, ADAPT, and other top-ups, an eligible business could receive up to $15,100 in grant funding for digital adoption if they are in a smaller NWT community (businesses in Yellowknife or a few larger towns have a slightly lower cap around $12,700). These funds can be used for expenses like creating or enhancing an e-commerce website, buying software or hardware needed to digitalize operations, setting up inventory management or customer relationship management (CRM) systems, digital marketing efforts, and related training or professional services.

• Other Prosper NWT Services: Beyond the digital grants, Prosper NWT continues to offer business loans (for example, working capital loans or fixed asset loans) and expert advice to NWT entrepreneurs. While loans are not grants, it’s useful to know Prosper NWT can be a one-stop shop for various financing needs. They also might have other contribution programs periodically (such as emergency relief funds or sector-specific funds when announced by the territorial government).

• Accessing Prosper NWT Funding: To benefit from Prosper NWT programs, a business generally must be NWT-based (typically with under $500,000 in annual revenue for the grants, as they target small businesses). Applications for the digital programs involve filling out forms to outline your project (like describing what digital improvements you plan and the costs). Prosper NWT’s website and office provide guidelines and advisors who can help ensure your project meets criteria. One tip is to have a clear idea of the digital change you want (e.g., launching an online store, implementing a booking system, etc.) so that your application can demonstrate how it will improve your business. These digital grants have been very popular, so it’s wise to apply early as funding can be first-come, first-served until the yearly budget is used up.

Territorial and Regional Programs in Yukon and Nunavut

While Yukon and Nunavut do not have agencies exactly like BDIC/Prosper NWT, they have their own mechanisms for business grants:

• Yukon Programs: The Yukon government’s Department of Economic Development offers funding under programs such as the Economic Development Fund (EDF). The EDF in Yukon is a versatile grant program that supports projects providing long-term economic benefits. It’s structured in tiers: for example, Tier 1 projects can get up to $30,000, Tier 2 up to $100,000, and Tier 3 up to $500,000, with cost-sharing (the fund might cover 50-75% of project costs depending on the expense type). Yukon also has a Community Development Fund for community-level projects (which can indirectly benefit businesses by improving local infrastructure or events). Another Yukon initiative is through Tech Yukon for the Canadian Digital Adoption Program, offering micro-grants up to $5,000 for businesses to boost their e-commerce presence (similar to the NWT’s CDAP delivery). Additionally, sector-specific grants exist, such as the Tourism Relief and Marketing Programs (like the Spark Tourism Innovation grant for new tourism ideas, or funding to market tourism businesses), and film or arts grants for creative industry entrepreneurs in Yukon. The Yukon government encourages businesses to reach out to program advisors for guidance – for example, EDF requires an initial consultation with a program advisor before applying, to help proponents strengthen their proposal.

• Nunavut Programs: In Nunavut, the territorial government (Department of Economic Development and Transportation) provides business support primarily through community-based or regional partnerships. One key avenue is the Small Business Support Program, which offers grants to Nunavut small businesses and artisans for start-up costs, expansion, or improvements. While exact amounts can vary, entrepreneurs can often obtain modest grants (several thousand dollars) to help purchase equipment, offset operating costs in early stages, or market their products. Nunavut also runs a Strategic Investments Program aimed at larger economic initiatives or to support emerging industries in the territory (like fisheries, cultural industries, or energy projects). Moreover, distinct from government, Nunavut’s Inuit organizations play a big role: for example, the Kakivak Association (in the Qikiqtani region) offers the Sivummut Grants for Inuit small businesses (grants ranging roughly from $5,000 for planning up to $10,000 for start-up or expansion activities for Inuit-owned businesses). Similar business support grant programs are available through the Kivalliq and Kitikmeot regional associations for Inuit entrepreneurs. These programs are crucial for indigenous business owners in Nunavut, providing funding and sometimes training or mentorship.

• FedNor (Federal Economic Development Initiative for Northern Ontario): While Northern Ontario benefits greatly from NOHFC as discussed, it’s worth noting that the federal counterpart, FedNor, also provides funding in the region. FedNor’s programs can include the Regional Economic Growth Through Innovation (REGI) initiative, which has provided grants or interest-free repayable funds to businesses for technology adoption, and support for community innovation hubs, among others. FedNor often funds projects via local organizations (for instance, supporting incubators or giving grants to not-for-profit economic development groups that in turn assist businesses). For a Northern Ontario entrepreneur, direct FedNor grants are less common than NOHFC grants, but there may be collaborative funding (stacking FedNor and NOHFC on a project, for example) or opportunities to participate in FedNor-supported programs (such as youth internship wage subsidies).

The landscape of funding agencies may seem complex, but the key takeaway is that Northern business owners have multiple allies: federal agencies like CanNor/FedNor, territorial/provincial programs like Prosper NWT or Yukon’s funds, and even indigenous or community organizations. Next, we will break down some specifics by each region to clarify the opportunities in Yukon, NWT, Nunavut, and Northern Ontario.

Region-Specific Business Grant Opportunities

Each northern region has a different mix of programs and priorities. Below, we outline what entrepreneurs can expect in each area:

Yukon Business Grants and Funding Programs

Yukon’s business grant environment is characterized by support for diversification and community well-being. A standout program is the Yukon Economic Development Fund (EDF). As mentioned, the EDF can provide anywhere from under $30,000 up to $500,000 for projects that generate sustainable economic growth. Whether a mining supply company needs capital to expand operations or a local manufacturer wants to develop a new product line, the EDF could be a fit if the project will create jobs or new revenue streams in Yukon. The fund is broad in scope – eligible projects might include business planning and development, innovative technology adoption, market expansion initiatives, or even collaborations that benefit multiple businesses. There are specific intake periods for larger funding tiers, so Yukon entrepreneurs should plan their applications according to those deadlines (Tier 2 and 3 have set application deadlines a couple of times per year, whereas Tier 1 is open year-round).

Apart from the EDF, Yukon offers sector-specific and small business grants. For example, the Tourism Development Fund and Tourism Marketing programs help tourism operators enhance attractions or reach new markets. If you run an outfitting business or a cultural tourism enterprise, you might get funding for product development or promotional campaigns. There’s also support for the film and media sector (Yukon has a Film Development Fund and a Filmmakers Fund to support local productions, which indirectly benefits production businesses).

Yukon businesses looking to go digital can tap into the Grow Your Business Online (CDAP) micro-grant delivered through Tech Yukon. With up to $5,000 available, a retail shop in Whitehorse could create an e-commerce website or a restaurant could integrate an online reservation and ordering system, with guidance from a digital advisor. This not only provides funds but also expertise to ensure the digital investment is effective.

Another important program in Yukon is Staffing Up, which is a wage subsidy and training fund to help businesses hire and train employees. While not a grant for capital expenses, it effectively grants money to businesses by covering a portion of wages (up to $20/hour for 16 weeks for new hires) and subsidizing training costs. For a small business struggling to afford additional staff, this can be a significant support to grow the team.

Overall, Yukon’s grant programs emphasize partnerships and community impact. It’s common that before applying to a Yukon funding program, you should contact the program officers for advice. They often assist in refining your idea to fit the criteria. In Yukon’s small business community, word-of-mouth and networking with the Economic Development department can be very helpful in discovering what funding might be currently available, as sometimes pilot programs or one-time funding opportunities arise (for example, special relief funds during economic downturns or new initiatives targeting green energy or innovation). Yukon business owners are encouraged to keep an eye on Yukon.ca announcements and to connect with organizations like Yukonstruct (a local innovation hub) or the Whitehorse Chamber of Commerce, which often share information on grants and training opportunities.

Northwest Territories Business Grants (Prosper NWT and SEED Programs)

In the Northwest Territories, entrepreneurs can access a mix of territorial and federal funding, much of which is streamlined through local programs. We’ve discussed Prosper NWT and its focus on digital adoption grants earlier. In addition to those, the GNWT (Government of Northwest Territories) offers the SEED Programs (Support for Entrepreneurs and Economic Development) which are a suite of small business grants managed by the Department of Industry, Tourism and Investment (ITI). SEED is quite accessible to local businesses and is broken down into several categories:

• Entrepreneur Support: Grants to help with starting a business, expanding operations, or product development. This can include start-up funding to purchase tools or equipment, or operational support in the early stages. There are typically caps (for example, a new start-up might get up to $10,000 or more under certain conditions). SEED Entrepreneur Support can also help with professional services like hiring a consultant to do a market study or prototype development for a new product.

• Micro-Business Grants: Aimed at very small businesses (including local artisans, one-person businesses, trappers, or craft producers). These grants recognize the importance of traditional economy and crafts in the NWT. They often are a few thousand dollars to buy supplies or attend a marketplace.

• Business Intelligence and Networking: Funding under SEED that helps business owners attend trade shows, conferences, or training that will improve their business. For instance, if you run a lodge in the NWT and want to attend a tourism expo in southern Canada to promote your services, you could apply for a grant to cover a portion of your travel and booth costs. This helps northern businesses connect with larger markets and learn from industry events.

• Community Economic Development: SEED also provides funds to local organizations or communities for projects that support the local economy (not directly a grant to a single business, but a business could benefit if, say, a community association uses a grant to build a new craft market or establish a local fishing tournament that draws tourists).

• Sector-Specific Programs: The NWT government has a few targeted funds as well. For example, there’s a Film Rebate Program to encourage film productions in the NWT (benefiting production companies and local film entrepreneurs), and a Mining Incentive Program that provides grants to prospectors and exploration companies (important if you’re in the mineral exploration business). While these are specialized, they are worth noting for businesses in those sectors.

Eligibility for NWT grants like SEED usually requires that the business is NWT-owned and based. Some programs give preference to Indigenous entrepreneurs or those in smaller communities outside of Yellowknife, aiming for more balanced regional development. Application processes are generally straightforward – often an application form submitted to your regional ITI office, with a brief description of your business project and how it meets the program goals. Decisions for small grants can be relatively quick, whereas larger contributions might undergo more review.

The Northwest Territories also benefit from CanNor funding for bigger projects (as covered under CanNor above). For instance, if a group of businesses or a development corporation in the NWT has a multi-million-dollar plan to build a cold-weather testing facility or a new fish processing plant, CanNor’s programs would be a key source of funding alongside territorial support.

One more funding avenue in NWT is through community futures organizations (Community Futures Development Corporations in regions like Akaitcho, Beaufort-Delta, etc.). While these primarily offer small business loans, occasionally they manage grant funds for youth entrepreneurs or specific initiatives. It’s worthwhile for an entrepreneur to connect with their local Community Futures office or economic development officer, as they can point out any new grant initiatives and also assist with preparing grant applications.

In summary, NWT businesses should leverage Prosper NWT for digital and advisory support, use SEED for start-up or expansion needs at a smaller scale, and look at federal programs for larger projects. With the high cost of operating in the North, these grants can make a meaningful difference – for example, enabling the purchase of energy-efficient equipment to lower operating costs, or funding marketing efforts to reach customers beyond the territory.

Nunavut Business Funding Opportunities

Nunavut’s grant landscape is closely tied to community development and Indigenous entrepreneurship. As Canada’s vast Arctic territory, Nunavut has many small, remote communities, and supporting local business growth is both an economic and social priority.

Key opportunities in Nunavut include the Small Business Support Program (SBSP) provided by the territorial government. This program helps Nunavut-owned small businesses with grants for startup costs, expansion, and improving operations. A typical use of SBSP grants might be to purchase a new piece of equipment for a bakery in Iqaluit, or to help an outfitting business in Rankin Inlet cover the costs of marketing to tourists. The amounts are often in the range of a few thousand to tens of thousands of dollars, depending on the scope and the impact of the project. The application usually requires a brief business plan or description of how the money will be used and how it will benefit the business and community (for example, creating jobs for local residents or replacing a service that previously wasn’t available locally).

Another territorial initiative is the Strategic Investments Program (SIP), which is intended for larger economic development projects in Nunavut. Through SIP, funding might be available for initiatives in fisheries, infrastructure, or major capital purchases that help an industry grow. For instance, an Inuit cooperative seeking to build a new facility to process Arctic char might seek SIP support. These are often one-time, negotiated contributions rather than standardized grants, and they often require significant planning and partnership (possibly with federal programs like CanNor or with regional associations).

For Inuit entrepreneurs (who make up a large portion of Nunavut’s population), there are specialized funds managed by Inuit birthright organizations. Each region of Nunavut has an association that delivers programs under the federal Indigenous Entrepreneurship and Business Development Fund (EBD) as well as their own funding:

• The Kakivak Association (serving the Qikiqtani (Baffin) region) provides Sivummut Grants to Small Businesses. “Sivummut” in Inuktitut means “moving forward,” and these grants help Inuit move forward with business ideas. They typically offer up to approximately $5,000 for the planning stage, up to $10,000 for launching a new business, and additional funding for expansion. For example, an Inuit seamstress in a Baffin Island community could get a grant to buy sewing machines and materials to start a small garment business, or an existing construction company might get funds to purchase new tools to take on larger projects. Kakivak also has a Small Tools Grant for artisans and harvesters to buy equipment like tools for carving or hunting.

• In the Kivalliq region, a similar program is often delivered by the Kivalliq Business Development Centre or the regional Inuit association. They provide grants and loans to Inuit-owned businesses in that region.

• In the Kitikmeot region, the Kitikmeot Economic Development Commission (KEDC) offers business support services and may have grant funding for small business initiatives and community projects.

Apart from these, Nunavut businesses can also access CanNor grants for large-scale projects. CanNor’s presence in Nunavut is significant, as they fund many community infrastructure projects (like tourism facilities, arts centers, and feasibility studies for new industries). If a business idea in Nunavut is big enough (such as starting a new mineral processing facility or a regional transportation service), CanNor funding combined with territorial support can provide the capital needed.

Finally, much of Nunavut’s economy is community-focused, so entrepreneurs often get creative in piecing together support. It’s not uncommon for a small business to have some personal investment, a contribution from an Inuit organization, a territorial grant like SBSP, and maybe a federal micro-loan or grant. By combining these resources, entrepreneurs mitigate the high costs of equipment and shipping in the North.

In Nunavut, relationships and local reputation matter too – when applying for grants, having support letters from the local hamlet council or an Inuit association can strengthen the case that your business will have a positive impact. Additionally, because many Nunavut communities are small, the same people might administer multiple programs (one person could be the economic development officer for the hamlet and also sit on a committee for an Inuit fund). So, maintaining good communication and demonstrating commitment to the community can indirectly help your funding journey.

Northern Ontario Business Grants and Funds

Northern Ontario, including areas such as Thunder Bay, Sault Ste. Marie, Sudbury, Timmins, and many smaller towns, has a developed network of grants largely funneled through NOHFC (covered earlier). In this region, Northern Ontario Heritage Fund Corporation grants are the headline opportunity for businesses. Let’s recap and add context specific to Northern Ontario entrepreneurs:

• If you are starting a business in Northern Ontario, the NOHFC’s Invest North – Launch stream is likely your first stop. It essentially can act as a matching grant for your startup investment. For example, if you need $300,000 to start a manufacturing facility in the North, NOHFC could potentially contribute $150,000 of that (50%) as long as you can secure the rest from other sources (your own equity, bank loans, etc.). This greatly reduces the burden on new entrepreneurs. It also incentivizes people from outside Northern Ontario to consider launching their business in the North, since such grants might not be available elsewhere in Ontario.

• For expanding businesses, the Invest North – Grow stream is unique because it offers flexibility: part grant, part loan. Some companies may choose the option to take a smaller grant portion upfront, or if they need more capital, they can take a combined grant and repayable loan from NOHFC. The availability of up to $1 million (with $400k as grant) can tip the scales for a business deciding whether to expand in Northern Ontario versus somewhere else. It’s a significant incentive to grow locally and create more jobs in Northern communities.

• The Innovation stream of NOHFC is particularly attractive for tech startups or R&D-heavy companies in the North. It can fund prototypes, commercialization of research (perhaps coming out of Northern Ontario’s colleges or Lakehead/Laurentian University labs), and help companies attract private investment by reducing initial development costs. For instance, a software company in the North developing an innovative platform could get funding to hire developers or purchase needed technology through this stream.

• Besides NOHFC, Northern Ontario businesses should also consider FedNor programs. While FedNor often funds non-profits and municipalities, it has supported initiatives like the Northern Ontario Angel Network (connecting businesses with investors) and provided direct funding to certain businesses under federal innovation programs. Additionally, FedNor and NOHFC sometimes collaborate – for example, a tourism resort expansion might get some funding from NOHFC and additional support via FedNor’s tourism relief funds or community futures loans.

• Another Northern Ontario resource is the network of Community Futures Development Corporations (CFDCs). There are several CFDCs across Northern Ontario regions, and they predominantly offer loans (often at low interest) to small businesses that might not qualify for traditional bank financing. While loans are not grants, some CFDCs also administer grant programs like the Regional Relief and Recovery Fund (RRRF) (a pandemic-era program) or youth business grants when funded by government. It’s worthwhile for entrepreneurs to build a relationship with their local CFDC, as they provide business counseling and can alert you to any new funding programs coming down the pipeline.

• Other Provincial Programs: Sometimes, Northern Ontario businesses can also leverage Ontario-wide programs that have special streams for the North. For example, there are Ontario innovation grants or export marketing grants that give extra consideration or higher cost coverage for Northern participants due to the additional challenges of distance. The Ontario Trillium Foundation occasionally provides grants to social enterprise-type businesses or community enterprise projects in the North. And if your business is in energy or agriculture, Ontario’s programs under the Canadian Agricultural Partnership or energy rebate programs might have Northern components.

In Northern Ontario, as in the territories, the cost of doing business can be high (due to transportation, energy, and labour costs). Grants and government funds can help level the playing field. The NOHFC, by covering a portion of project costs, effectively improves the return on investment for businesses and encourages more projects to go forward. However, competition for these funds can be stiff and the due diligence is thorough. Successful applicants often consult with a Regional Economic Development Advisor (Ontario has ministry staff who can guide applicants in the North through the process). They ensure your application clearly shows economic benefits like job creation, value-added processing of local resources, or new services that keep money in the region.

Tip: In writing NOHFC or FedNor applications, always highlight how your project ties into the broader community or regional economy. For instance, rather than just saying “we need a grant to buy a new machine,” explain that “this new machine will allow us to process local lumber into finished furniture, creating 5 new jobs and reducing the need to ship raw materials out of Northern Ontario.” This aligns with the fund’s goals and strengthens your case.

Eligibility Criteria and Application Processes

With a range of programs available, the eligibility criteria and application procedures can vary. However, there are common themes across most grants for businesses in Northern Canada:

Basic Eligibility Requirements:

• Location: The business must operate in the region specific to the grant. This means if you’re applying for a territorial grant, your business should be based in that territory (Yukon, NWT, or Nunavut as required). For Northern Ontario programs, your project or company should be located in Northern Ontario (the definition of “Northern Ontario” is generally the districts north of Parry Sound and Nipissing – basically, the northern administrative regions of Ontario). Many programs will outright decline applications from businesses based in major southern cities.

• Business Type: Grants usually target small and medium-sized enterprises (SMEs) in specific industries. Some programs exclude certain sectors. For example, retail and consumer services (like restaurants, retail shops, personal services) are often excluded from large economic development grants on the grounds that they primarily circulate money within a community rather than bringing new money in. On the other hand, tourism operators, manufacturing, technology, natural resource development, cultural industries, and knowledge industries are commonly eligible because they can grow the economic pie. Always check the list of ineligible industries or activities in the program guidelines. For instance, NOHFC lists that pure retail, accommodations (hotels) and real estate projects are not eligible under its main business streams, while Prosper NWT’s digital grants wouldn’t be available to non-profits or government entities (only private businesses qualify).

• Size and Revenue: Some grants aimed at “small businesses” may impose a cap on company size or revenue. For example, Prosper NWT’s digital grant required that the business have $500,000 or less in annual revenue to ensure the funding goes to small players. Others might require a minimum size: e.g., CDAP required an applicant to have at least one employee (or a minimum revenue) to show that it’s an established business ready to utilize the grant. Be sure your company meets these definitions (sometimes measured by number of employees, annual sales, or years in operation).

• Project Alignment: Beyond the business itself, the project you are proposing must fit the program. Each grant has specific objectives. If a fund is aimed at innovative technology adoption, you need to propose a project that involves new technology in your business. If a grant’s goal is job creation, ensure your project plan highlights how many jobs will be created or maintained. Essentially, the project needs to check the boxes of the fund’s purpose. Reading the program’s stated priorities can guide you in framing your project proposal correctly.

Application Process Commonalities:

• Application Form and Proposal: Most grants require filling out an application form. Along with basic business info, you’ll usually need to provide a proposal or business plan section. This typically includes a description of your project (what you plan to do with the funds), why it’s needed, how it will benefit your business and the community/region, and a detailed budget. Many programs, like NOHFC and CanNor, also ask for financial statements or projections to ensure you have a viable plan and the capacity to complete it.

• Deadlines vs. Ongoing Intake: Some programs accept applications on a continuous basis (first-come, first-served until funds are exhausted). Examples include many small business grant programs in the territories (which often say “ongoing intake” or “apply anytime”) and the NOHFC Launch program. Other programs have specific intake periods or deadlines (for example, NOHFC Grow has quarterly deadlines; Yukon’s EDF has tiered deadlines; CanNor might have an annual call for EOIs). It’s crucial to note these timelines. Missing a deadline might mean waiting several months for the next round, which could delay your project.

• Supporting Documents: Prepare to include supporting documents. These can be quotes from suppliers (to justify costs in your budget), proof of other financing (if a program requires you to fund a percentage of the project yourself, you may need to show bank loan approvals or personal investment confirmation for the matching portion), resumes or credentials (especially if the grant is evaluating your team’s ability to execute the project), and any permits or agreements relevant to the project. For instance, if you are building a facility and applying for funding, the program might want to see that you have the land rights or a lease in place.

• Review and Evaluation: After submission, grant applications go through a review process. Simpler grants (small dollar amounts) might be reviewed by one officer who ensures criteria are met. Larger grants often go to a committee or even a board of directors for decision (as with NOHFC and CanNor). They will evaluate based on criteria such as economic impact, feasibility, and alignment with priorities. Some programs explicitly use a scoring system. Knowing the criteria in advance (sometimes listed on the program’s website or guide) is helpful – you can structure your application to address each point they care about.

• Interviews or Pitches: Occasionally, you might be invited to discuss your application or provide more information. This is more likely for sizable funding requests. Be prepared to answer questions or clarify aspects of your project. It’s a good sign – it means you are under serious consideration. Keep communication professional and responsive.

• Approvals and Contribution Agreements: If approved, you will usually have to sign a funding agreement. This agreement will outline the amount granted, the purpose (what expenses are covered), and any conditions. Conditions could include reporting requirements (e.g., provide a report or receipts to show how money was spent), timelines (when the project should be completed), and performance targets (like creating a certain number of jobs by a date). Some grants pay the money upfront, but many reimburse after you incur costs or reach milestones. For example, a contribution agreement might state that 50% of the grant is paid when the equipment is delivered and the remaining 50% after you show proof of the new hires six months later.

• Stacking and Other Funding: A critical point in Northern funding is “stacking,” which refers to using multiple government funding sources for the same project. Most programs allow stacking but put a limit on it. A typical rule might be that government funds combined cannot exceed 75% or 90% of the project cost (meaning you must contribute the rest from private funds). Always declare other funding you have or have applied for, because funders do communicate in some cases. For instance, if you got a grant from CanNor and also apply for NOHFC for the same project, they will ensure together they aren’t overpaying your project beyond the allowed percentage. Stacking can be a smart strategy to cover large costs, but it requires coordination and transparency.

Eligibility Best Practices: Before investing a lot of time into an application, double-check your eligibility. If uncertain, reach out to the program contact person – most grant programs list an email or phone number for inquiries. It’s perfectly fine to write a brief email summarizing your business and project and asking, “Would this type of project be eligible under program X?” This can save you from pursuing the wrong funding source and they might even redirect you to a more suitable one.

Finally, ensure your business is in good standing legally and financially. Many grants require that you have a valid business license/registration, that you’re up to date on taxes, and that you carry any required insurance or permits for your operations. If your company has any red flags (e.g., past bankruptcy, legal disputes, or compliance issues), address those or be prepared to explain them, as they could affect your application.

Tips for Securing Grants and Common Mistakes to Avoid

Securing a grant can be competitive, but there are strategies to improve your chances. Here are some tips for success and pitfalls to avoid:

Tips for Securing Grants:

1. Do Thorough Research and Match Your Project to the Right Grant: Align your application with the fund’s objectives. Use the keywords and language from the program description in your proposal. For example, if a program emphasizes “economic diversification and job creation,” explicitly state how your project diversifies the economy and how many jobs it will create. Tailoring your application to each grant program gives you a big advantage over a one-size-fits-all approach.

2. Prepare a Strong Business Plan or Proposal: A solid plan is the foundation of any grant application. Include clear financial projections and demonstrate that you have skin in the game (investing your own money or securing a loan shows you are committed). Highlight your team’s experience and why you can deliver the project. A well-structured plan with an executive summary, market analysis, and financial breakdown will make it easy for evaluators to see the viability of your business.

3. Start Early and Be Organized: Grant applications can be time-consuming. Start preparing well before the deadline. Gather required documents (quotes, financial statements, incorporation papers) in advance. If you need approvals (like a band council resolution for a project on Indigenous land or a zoning permit for a building project), factor in that time. Submit your application before the deadline to avoid any last-minute technical glitches. Early submission also demonstrates your professionalism and enthusiasm.

4. Seek Guidance and Mentorship: Use local resources to strengthen your application. Many regions in Northern Canada have economic development officers or business support organizations (like the Yukon Small Business Centre, NWT Business Development officers, Community Futures offices, etc.). These professionals can review your application, provide letters of support, or even connect you with successful grant recipients for insight. Similarly, if you know someone who previously won the grant, ask them for tips or even to review your draft. Some programs (like CanNor’s EOI process) have detailed guides – take advantage of those and any webinars or info sessions offered.

5. Demonstrate Community and Indigenous Engagement: Projects that show broad benefits or inclusivity often score higher. If applicable, mention if your business will partner with Indigenous communities, employ local residents, or solve a community problem (like providing a service that people currently have to fly south to get). For instance, saying “This project will reduce reliance on imported goods by producing them locally in Nunavut” can strengthen an application under an economic development grant. Also, if you are an Indigenous entrepreneur, be sure to identify that if the program prioritizes Indigenous involvement – many northern grants do, but they might not know unless you highlight it.

6. Plan for Sustainability: Funders like to see that the benefits of their grant will last. Explain how you will sustain the project after the grant money is used. Will the increased revenue from expansion allow you to be self-sufficient? Are you training local staff who will keep the operations running? Show that their investment leads to a long-term outcome, not just a temporary boost.

Common Mistakes to Avoid:

• Incomplete or Inaccurate Applications: This sounds obvious, but many applications are rejected simply because something was missing – be it a signature, a required document, or an unanswered question. Double-check everything. Use the application checklist if one is provided. If a question doesn’t apply, don’t leave it blank; write “Not applicable” and explain why.

• Ignoring Eligibility Rules: Sometimes in the excitement to get funding, applicants apply for grants they aren’t actually eligible for, hoping for an exception. This is usually a waste of time. For example, applying to a Northern Ontario grant when your business is just outside the defined boundary, or being a southern-based company hoping to get a northern grant without a presence there. Fund administrators stick to their criteria. It’s better to find a grant you truly qualify for or adjust your project to meet the criteria.

• Budget Overestimations or Ineligible Expenses: A common mistake is padding the budget or including costs that the program won’t cover. Every grant has specific eligible costs. If you include ineligible expenses (say, asking for money to cover regular payroll, or debt refinancing, which many grants disallow), it can either reduce your funding or get your application thrown out. Be realistic and accurate in your budget. Also, get quotes to justify costs – don’t just guess. If you say a new generator will cost $50,000, provide a supplier quote to back that up. This adds credibility and prevents issues if the actual cost is scrutinized later.

• Lack of Clarity or Too Much Jargon: Some applications fail because the evaluators couldn’t clearly understand the project or why it matters. Explain your business and project in clear, concise terms. Avoid heavy technical jargon or, if your project is technical, include a short explanation that a non-expert could appreciate. You should assume that at least one person reviewing your application is not intimately familiar with your industry. For example, if you’re developing a machine learning algorithm for resource exploration, briefly explain how that works and why it’s beneficial in plain language.

• No Emphasis on Results: Remember to focus on outcomes, not just inputs. Don’t just say “We need new equipment.” Say “With this new equipment, we will increase production by 40%, leading to $500,000 in additional annual revenue and 3 new full-time jobs.” Quantify results where possible. Grants are essentially investments by the government, so they want to see a return in terms of economic or community benefits.

• Procrastinating on Reporting (After Winning the Grant): The work isn’t over once you secure the grant. Many businesses make the mistake of not following through with the reporting requirements. Mark the reporting deadlines on your calendar and keep receipts and records of how you spend the funds. If a grantor requires a final report on outcomes, be honest and detailed. This is not only required legally, but it also sets you up favorably if you ever apply for another grant from them. Agencies do take note of how well you managed past funding.

One extra tip: consider co-funding or phased projects. If your project is very large, you can break it into phases and seek funding from different sources for each phase. This can make it more digestible for grant programs. For instance, Phase 1 (feasibility study) might be funded by a small territorial grant; Phase 2 (construction) might be a big CanNor or NOHFC ask; Phase 3 (workforce training for the new facility) could tap an employment grant. By structuring this way, you can often navigate funding limits and also show each funder that there is a comprehensive plan supported by others.

By following these tips and avoiding common errors, you’ll improve your chances of securing valuable grant funding for your northern business venture. Persistence is key as well – if you don’t succeed the first time, seek feedback on why your application was not selected (some programs will provide notes), refine your proposal, and consider applying again in the future or to a different funding program.

Common Questions about Business Grants in Northern Canada

Business owners often have many questions about grants and funding programs. Below we address some frequent queries in a Q&A format to clarify how grants work in the northern context:

Q: What grants are available for new startups in Northern Canada? A: There are several grants tailored for startups across the North. In Northern Ontario, the NOHFC “Launch” program can provide up to $200,000 for new business startups. In the territories, each government has small business startup funds (for example, the SEED Entrepreneur Support in NWT or the Small Business Support Program in Nunavut) which can provide initial capital for equipment, inventory, or marketing for a new company. Additionally, some Indigenous organizations offer startup grants for Inuit or First Nations entrepreneurs launching businesses in their communities. It’s advisable to connect with local business development centers or economic development officers, who can point you to the appropriate startup funding based on your location and business type.

Q: How can I find out if I’m eligible for a specific grant? A: The best approach is to carefully read the eligibility criteria provided on the program’s official website or application guide. Look at requirements like location, industry sector, business size, and project scope. If you meet most of the criteria but are unsure about a detail, contact the program’s administrator for clarification. For example, if a fund requires the business to be 51% Indigenous-owned and you have a partnership structure, you would confirm your eligibility with the program office. Many funding agencies in Northern Canada are quite approachable – you can call or email them with a brief description of your business and project, and they will often confirm if it’s worth applying. Utilizing regional one-stop resources such as “Canada Business” service centers or territorial business departments can also help; they maintain directories of funding programs and can do an eligibility assessment for you.

Q: Can I apply for multiple grants at the same time for the same project? A: Yes, you can apply to multiple grants, and in many cases this is encouraged, but you must disclose this in your applications. Using multiple funding sources is known as “stacking.” Most programs allow funding from other sources as long as the combined funding doesn’t exceed a certain percentage of your project costs (commonly 75% or so for businesses). For instance, you might fund a project with 50% NOHFC money, 25% CanNor money, and 25% from your own or bank funds. What you cannot do is get two grants to pay for the exact same expense twice. If both grants are approved, they will coordinate so each covers different portions of the budget. Applying to more than one program can improve your chances, but be careful: managing multiple applications is a lot of work and if both approve, you’ll have to juggle reporting to each funder. Also, some grants (particularly smaller ones) won’t want to fund a project that is already fully covered by another grant, so be transparent and ensure each funding source knows the overall plan.

Q: Do I have to repay grants, or are they free money? A: A true “grant” is non-repayable – you don’t have to pay it back as long as you fulfill the conditions (using it for the intended purpose, meeting any targets, and reporting properly). So in that sense, it’s often viewed as “free money.” However, keep in mind it’s taxpayer money aimed at achieving a goal, so you are accountable for it. Some programs use the term “contribution” or “conditional contribution,” especially at the federal level. These are essentially grants with conditions, and for businesses they can sometimes be repayable contributions. For example, CanNor or FedNor might give a repayable contribution to a for-profit business for expansion – typically interest-free and almost like a loan that you pay back into a fund to be used for others later. The terms will be spelled out in the agreement. Most smaller grants (like under $50k and for startups or digital adoption) are non-repayable. Just be sure to read the fine print. If it’s a repayable contribution, think of it as a loan that you’ll need to return over time. If it’s non-repayable, then as long as you meet the project requirements, you keep the funds. One more note: grant money is generally considered business income for tax purposes, so consult with your accountant on how to record and utilize it in a tax-efficient way.

Q: What are some common reasons grant applications get rejected? A: Common reasons for rejection include not meeting basic eligibility (this is the first filter – if you miss a criterion, the application might not even be reviewed further), lack of clarity or detail in the application, and weak alignment with the program’s goals. For example, if a program’s goal is to increase jobs in a community and your application doesn’t clearly state any job creation, it may score low. Other reasons can be an unrealistic project (budget doesn’t add up, timeline not feasible) or a poor financial case (maybe the reviewers felt the business might not survive even with the grant, which could happen if projections aren’t convincing). Competition is another factor: sometimes many strong applications are received and there’s just limited funding, so not every good project gets funded. In those cases, feedback from the agency might indicate that while your proposal was eligible, it didn’t rank as high as others – maybe due to impact or readiness. The good news is you can often improve and reapply. Always ask for feedback if you get a rejection; many funders will provide a few comments. Use that to strengthen your next attempt, either with the same program or a different one.

Q: Are there grants specifically for Indigenous or women entrepreneurs in the North? A: Yes, there are. For Indigenous entrepreneurs, aside from the mainstream programs, there are dedicated funds. The federal government’s Indigenous Services Canada offers the Entrepreneurship and Business Development (EBD) fund for Indigenous-owned businesses (often delivered through organizations like Nunavut’s regional associations, Yukon First Nations economic development corporations, or NWT’s Indigenous economic development funding streams). These can provide grants or non-repayable contributions for business development and are specifically for First Nations, Inuit, or Métis entrepreneurs. Additionally, programs like CanNor and NOHFC often prioritize projects that have Indigenous involvement or ownership and may have a higher approval rate for those that do, in line with government commitments to Indigenous economic reconciliation. For women entrepreneurs, there are national programs (for example, the Women Entrepreneurship Strategy which has had funding streams that northern businesses could tap into) and some local initiatives such as mentorship and small grants run by women’s business networks in the territories. While not northern-specific, organizations like Futurpreneur have Indigenous and newcomer programs that provide mentorship and startup loans (and occasionally grants) for young entrepreneurs up North. It’s also worth checking with territorial chambers of commerce or business councils if any targeted grant contests are open – sometimes there are business plan competitions or grants sponsored by corporations aimed at women, youth, or Indigenous business owners. In summary, additional layers of support do exist for underrepresented groups, and combining these with general grants can be part of a funding strategy.

Q: How long does it typically take to receive grant funding once approved? A: The timeline can vary. For small grants, the process is fairly quick – you might hear back in a few weeks and get a cheque or deposit shortly after approval or after you submit proof of expenditures. For example, a $5,000 tourism micro-grant might be approved within a month and paid out upfront. For larger grants, expect a longer timeline. NOHFC or CanNor contributions might take a few months for the review process, then once approved, there’s the signing of the agreement. Funds from large programs are often released in installments. It could take anywhere from 3 to 6 months from application to seeing the first dollars, depending on complexity. If your project is time-sensitive, it’s important to factor this in and maybe communicate any critical timelines to the funder. Some programs will accommodate and fast-track if there’s an urgent economic opportunity (for instance, if you need to order a piece of equipment by a certain date to get a discount, sometimes the funder can issue a conditional approval letter to help). However, patience is usually needed with grants. Always ensure you have a bit of a cash flow buffer to start the project or cover expenses until the grant reimbursements come through.

Northern Canada offers a wealth of funding programs for those willing to put in the effort to secure them. From CanNor grants that back transformative projects across the territories, to Prosper NWT’s digital adoption fund boosting small businesses in the NWT, to Northern Ontario Heritage Fund Corporation programs fueling growth and innovation, the opportunities are out there. By understanding what’s available in your region, preparing strong applications, and following through diligently, you can leverage these grants to launch or expand your business in the North. The process may require dedication, but the business grants Northern Canada provides can be the key to unlocking success in some of the country’s most challenging and rewarding business environments. Northern entrepreneurs drive economic growth in their communities, and with the right funding, they turn ambitious ideas into reality, contributing to a prosperous future for Canada’s northern regions. Good luck with your funding journey and your business endeavors in the North!