Overview of Funding Opportunities in Atlantic Canada
The Atlantic provinces – New Brunswick, Nova Scotia, Prince Edward Island (PEI), and Newfoundland and Labrador – benefit from several regional and federal funding programs tailored to small and medium-sized enterprises (SMEs). Businesses can tap into direct grants, interest-free loans (repayable contributions), tax incentives, and wage subsidies. Key federal programs like those offered by the Atlantic Canada Opportunities Agency (ACOA) play a crucial role in funding for SMEs in Atlantic provinces, alongside province-specific grants.
Grant Types: Funding comes in various forms. ACOA grants Atlantic Canada businesses support through programs that often provide interest-free repayable funding or occasional non-repayable contributions for strategic projects. Tax incentives such as the federal Scientific Research & Experimental Development (SR&ED) credit and provincial R&D credits reward companies investing in innovation. Wage subsidies help offset labor costs when hiring or training staff. By understanding these funding types, businesses can identify the right mix for their needs.
Eligibility Considerations: Each program has its criteria. Generally, companies must be registered businesses operating in the region and meet size definitions (e.g. number of employees or revenue thresholds). Many grants target specific goals like job creation, export growth, R&D, or digital adoption. Some require the applicant to co-invest (matching funds) or demonstrate financial viability. It’s important to note that not all applications will be approved even if basic criteria are met; proposals should align with program objectives (such as economic impact in the Atlantic region) to be competitive. Businesses should prepare clear business plans, financial statements, and evidence of how the funding will be used to achieve measurable outcomes.
In the following sections, we delve into the major funding programs available, first covering region-wide initiatives and then detailing opportunities unique to each Atlantic province.
Federal and Regional Programs Supporting Atlantic Canada Businesses
Atlantic Canadian entrepreneurs can leverage several federal and pan-regional funding programs. These initiatives aim to stimulate economic development across all four provinces, often with local delivery partners or regional allocations.
Atlantic Canada Opportunities Agency (ACOA) Programs
The Atlantic Canada Opportunities Agency is the federal economic development agency for the region. ACOA provides financing and support to businesses and communities to foster growth. ACOA grants Atlantic Canada companies access to capital for expansion, innovation, and market development.
Key ACOA programs include:
Business Development Program (BDP): ACOA’s BDP offers interest-free repayable contributions (similar to loans) to SMEs for activities like business expansion, modernizing equipment, marketing, and skills development. While not a pure grant (as it is repayable), the BDP’s zero-interest funding helps businesses undertake growth projects that might otherwise be unaffordable. In some cases, non-profit organizations or community economic development projects may receive non-repayable contributions through this program. Atlantic firms can typically receive up to 50% of project costs funded under BDP, encouraging them to invest alongside ACOA.
Regional Economic Growth through Innovation (REGI) – Business Scale-up and Productivity: This initiative, delivered by ACOA in Atlantic Canada, supports high-growth firms scaling up or improving productivity. Funding often takes the form of repayable contributions for projects that enhance production capacity, adopt advanced technologies, or expand into new markets. There are also streams for smaller innovation projects and studies. For example, through REGI, an Atlantic manufacturer might receive support to purchase automation equipment or a software company might get help to commercialize a new product, with ACOA covering a portion of the costs.
ACOA Innovation and Sector Initiatives: ACOA has historically run programs focused on innovation, such as the Atlantic Innovation Fund (AIF), which provided R&D funding for commercialization projects (often in partnership with universities or research institutions). In recent years, innovation support may be folded into broader programs like REGI or targeted funds (e.g., for clean tech or digital technology adoption). ACOA also partners with provincial governments on special initiatives; for instance, ACOA has funded entrepreneurship hubs and accelerators in the region.
ACOA’s presence in the Atlantic provinces means businesses have local ACOA offices and advisors to guide them. While ACOA programs are competitive, a strong proposal demonstrating economic benefits (like jobs and increased regional competitiveness) stands a good chance. Companies should approach ACOA funding as part of a larger financing strategy, often combining it with provincial incentives or private investment.
Research and Development Tax Credits (SR&ED and Provincial R&D Incentives)
Innovative companies in Atlantic Canada should be aware of the generous R&D tax credits available. The federal SR&ED tax credits Atlantic provinces businesses claim are part of the Scientific Research & Experimental Development program, which is Canada’s flagship R&D incentive. Through SR&ED, businesses conducting qualifying research and development can receive an investment tax credit on eligible R&D expenditures. For Canadian-controlled private corporations (CCPCs), the federal credit is typically 35% on the first $3 million of R&D expenditures (fully refundable as a cash payment even if the company pays no tax), and 15% on amounts above that (non-refundable, to reduce taxes payable).
In addition to the federal SR&ED, each Atlantic province offers its own provincial R&D tax incentive. These R&D tax incentive Atlantic provinces programs generally provide a refundable tax credit around 15% of eligible R&D spending within the province. For example:
Nova Scotia Research and Development Tax Credit: 15% refundable credit on eligible R&D costs incurred in Nova Scotia.
New Brunswick R&D Tax Credit: 15% refundable credit on eligible R&D expenditures in New Brunswick.
Newfoundland and Labrador R&D Tax Credit: 15% refundable credit (with certain caps) for qualifying R&D in the province.
Prince Edward Island R&D Tax Credit: PEI has a 15% R&D credit as well, aligning with the other provinces.
These provincial credits can be stacked on top of the federal SR&ED credit. In practice, an Atlantic Canadian small business developing an innovative product could recover a substantial portion of its R&D labor, material, and contractor costs through combined federal and provincial credits. For instance, if a Nova Scotia tech startup spends $100,000 on eligible R&D salaries, it might get $35,000 back from federal SR&ED and another $15,000 back from the province – a total of $50,000 reimbursed, significantly reducing the net cost of innovation. This system of tax incentives is a cornerstone funding mechanism for many startups and tech-oriented SMEs, as it provides cash flow for reinvestment each year.
To benefit, companies must file detailed claims substantiating their R&D work and costs. While the process can be complex, many businesses in Atlantic Canada utilize specialized consultants or internal expertise to ensure they maximize these credits. The message is clear: any company doing research, experimentation, or new product development should leverage these tax incentives to offset costs. SR&ED tax credits Atlantic provinces are among the most valuable funding supports for innovation-focused firms.
Ignite Atlantic and Startup Funding Options
In addition to government-run programs, the Atlantic region has a growing ecosystem of startup incubators and innovation hubs that offer funding and support. One notable example is Ignite Atlantic, which provides funding and resources for entrepreneurs, particularly in rural communities. Ignite Atlantic funding options include seed funding grants and loans delivered in partnership with ACOA and provincial governments.
For instance, Ignite (with operations in Nova Scotia and New Brunswick) administers a Seed Grant Fund offering non-repayable grants up to $25,000 to high-potential startups for early-stage development (prototyping, market validation, etc.). This type of funding is highly valuable for new companies that might not yet qualify for large government grants or private investment. Ignite also has loan programs like the “Impact Loan” (in collaboration with local partners) providing working capital loans in the $5,000–$50,000 range to new businesses in certain regions (e.g., the Fredericton area in NB). These loans and grants through Ignite are aimed at fostering entrepreneurship outside the major city centers, ensuring that innovative ideas across Atlantic Canada can access capital.
Beyond Ignite, each province has innovation agencies and accelerators supporting startups. For example, Nova Scotia’s Innovacorp (now part of Invest Nova Scotia) runs startup programs and competitions that award equity investment or grants to early-stage companies. New Brunswick has organizations like the New Brunswick Innovation Foundation (NBIF), which we will discuss more under NB, offering startup investment and R&D grants. The presence of these organizations means that a budding entrepreneur in Atlantic Canada can seek not only direct government funding but also mentorship, networking, and seed money from the local startup support network. Many of these initiatives are backed by government funding indirectly, reinforcing the overall funding landscape available to small businesses.
By combining federal programs, tax incentives, and regional startup initiatives, Atlantic Canadian businesses can create a robust funding strategy. Next, we will break down the opportunities and notable programs in each Atlantic province.
New Brunswick: Small Business Grants and Funding Programs
New Brunswick offers a variety of funding programs to help small businesses launch, grow, and innovate. New Brunswick small business grants range from broad economic recovery funds to highly targeted innovation grants. The provincial government, often through Opportunities New Brunswick (ONB) or other agencies, provides financial assistance in forms of grants, loans, and subsidies. Here are key programs and opportunities in New Brunswick:
New Brunswick Small Business Grants and Incentives
The New Brunswick government periodically introduces grant programs to respond to economic needs. For example, in recent years there was a Small Business Recovery Grant that provided eligible NB businesses with up to a $10,000 non-repayable grant to support their post-pandemic recovery and stability. Such grants typically target companies that have faced revenue losses or other challenges and aim to stabilize the small business sector. Eligibility often requires demonstrating a revenue drop and having a minimum number of employees, ensuring the funds go to businesses genuinely in need and capable of sustaining operations with a boost.
Another ongoing initiative is the Innovation Voucher Fund, which encourages collaboration between small businesses and research institutions. This program covers a portion of R&D or innovation project costs (for instance, up to 80% of project expenses to a maximum of around $50,000) when an NB business partners with a New Brunswick university or college to develop new products, services, or technologies. By using innovation vouchers, companies gain access to academic expertise and facilities, accelerating their development work with financial support from the province.
New Brunswick also emphasizes digital transformation and exports. Programs have been offered to assist with digital adoption (helping businesses invest in e-commerce platforms, software, and automation – sometimes through provincial top-ups to the federal CDAP microgrant or separate digital economy grants). Additionally, an Export Development Program helps businesses looking to enter international markets by cost-sharing expenses like trade show attendance, marketing to foreign customers, or market research. A typical export grant might cover 50% of eligible costs up to a set limit (e.g., $20,000–$30,000) to encourage more NB companies to sell globally.
Environmental sustainability is another focus area. The province has provided sustainable business grants to companies pursuing green technologies or energy efficiency. An example would be a grant up to a certain amount (for instance, up to $40,000) for projects like installing renewable energy systems, upgrading to energy-efficient equipment, or launching environmentally friendly products. These initiatives align business growth with the province’s climate and environmental goals.
Overall, New Brunswick small business grants tend to support productivity improvements, innovation, workforce skills, and market expansion. Business owners should keep an eye on ONB and government announcements for new funding rounds or programs, as some are offered on a limited-time or first-come, first-served basis.
Canada-New Brunswick Job Grant (Workforce Training)
Workforce development is critical for small businesses to remain competitive. The Canada-New Brunswick Job Grant (CNBJG) is a signature program that helps employers invest in their employees’ skills. Under this program, a New Brunswick business can receive a grant to cover a significant portion of third-party training costs for its employees.
Typically, the Canada-New Brunswick Job Grant will fund up to two-thirds of training expenses, with the employer covering the remainder. In practice, employers in NB can get up to $10,000 per employee in training funding through this grant. For example, if a manufacturing company wants to upskill its technicians with a new certification course costing $15,000, the grant could reimburse $10,000 and the company would pay $5,000. Both existing employees and new hires’ training can be supported.
Eligible training can include courses, workshops, conferences, or other formal training provided by accredited institutions or qualified trainers. Employers must apply with a clear training plan that identifies the skills gaps and the training program to fill them. The goal is to ensure that the training leads to tangible improvements in the employee’s performance and the company’s productivity or competitiveness.
The CNBJG is an “employer-driven” program, meaning the business applies (as opposed to the individual employee) and chooses the training that best fits its needs. All private sector and non-profit employers in New Brunswick can apply, provided they have a job for the trainee at the end of the training period (the program is meant to upskill the workforce, not train people for jobs that don’t exist). This grant is part of a federal-provincial partnership (similar Canada Job Grants exist in other provinces) and is a popular way for NB companies to offset the cost of continuous learning. By utilizing the Canada-New Brunswick Job Grant, businesses can significantly reduce their training budgets while developing a more skilled workforce – a win-win that leads to higher productivity and employee retention.
New Brunswick Innovation Funding (NBIF and Startup Support)
For entrepreneurs and tech-oriented businesses, New Brunswick has strong innovation support through the New Brunswick Innovation Foundation (NBIF) and related programs. NBIF is a provincially-funded organization that provides both investment and grant funding to spur innovation in the province.
One notable program is the NBIF Early Stage Commercialization Fund (ESCF). This fund offers grants (often up to $50,000 per project) to help bridge the gap between research and commercial viability. It is targeted mainly at researchers and emerging entrepreneurs who have developed a novel technology or product within an academic or institutional setting and need early funding to validate it in the market. By providing this grant, NBIF helps turn lab discoveries or prototypes into market-ready ventures. For example, if researchers at the University of New Brunswick have created a new medical device prototype, the ESCF grant could fund activities like market research, prototype refinement, intellectual property protection, and business planning to spin off a startup company.
In addition to the commercialization fund, NBIF offers an Innovation Voucher (Voucher Fund) which we touched on earlier, and sometimes direct equity investments in high-growth startups. NBIF’s support often goes to sectors like information technology, life sciences, cleantech, and other knowledge-based industries. Startups might first receive a small grant or seed investment from NBIF to prove their concept, and later on, NBIF can co-invest in larger funding rounds as the company grows.
Outside of NBIF, New Brunswick’s startup ecosystem includes accelerators such as Planet Hatch (in Fredericton) and Energia Ventures, which often come with their own support and sometimes prize funding for participating companies. The presence of Ignite (as mentioned earlier) is also relevant, since Ignite’s seed grant and loan programs are available to NB entrepreneurs, especially in certain regions.
Overall, New Brunswick’s innovation funding options help ensure that new ideas and high-growth companies have the capital to start and scale. Entrepreneurs should engage with NBIF and local incubators early to learn about pitching for these opportunities. The NBIF Early Stage Commercialization Fund and related innovation grants highlight New Brunswick’s commitment to developing a modern, innovation-driven economy.
Film and Media Grants in New Brunswick
New Brunswick recognizes the cultural and economic value of the film, television, and digital media industry. To attract productions and support local media companies, the province provides film and media grants and incentives. One key incentive is a production grant/rebate program managed by the provincial government (through an agency often referred to as MediaNB or a similar body).
Under New Brunswick’s film incentive program, eligible film, TV, and digital media projects can receive a rebate or grant based on their expenditures in the province. For example, a common structure is a labour rebate of around 40% on eligible New Brunswick labor expenses, or alternatively a smaller percentage (e.g., 25%) of all spend in the province. This means if a film production hires local crew, actors, and spends on services in NB, a portion of those costs is rebated back. The exact percentage and structure can vary year to year; some programs offer a 25% grant on total production costs in NB or up to 40% on wages paid to NB residents working on the project.
Additionally, New Brunswick sometimes targets specific types of media with tailored support. For instance, there may be separate streams or additional bonuses for French-language productions, for digital interactive media, or for regional (outside big cities) filming. The province also supports emerging media creators through smaller grants: organizations like the New Brunswick Filmmakers’ Co-operative offer grants for short films and training initiatives to develop local talent.
The film and media grants New Brunswick offers not only incentivize outside production companies to film in NB (bringing jobs and spending), but also help local production companies grow. A New Brunswick-based film studio or content creator can use these incentives to reduce the cost of producing content, making it easier to get projects off the ground and attract co-producers or broadcasters.
For businesses in the film and media sector, it’s important to contact the province’s film office early in the project planning to understand the current incentive guidelines, application process, and any caps or budget limits (as governments allocate a certain budget to these incentives each year). When well-leveraged, the film/media grant can cover a significant share of production costs, making New Brunswick an attractive hub for creative industries.
Nova Scotia: Business Grants and Incentives
Nova Scotia’s business community benefits from a diverse set of grants and funding programs aimed at encouraging economic development, innovation, and job creation. Nova Scotia business grants are delivered through various agencies such as Invest Nova Scotia (the entity formed from the merger of Nova Scotia Business Inc. and Innovacorp), as well as through government departments like Nova Scotia Labour and Advanced Education (for workforce programs). Here are some of the prominent funding avenues in Nova Scotia:
Nova Scotia Small Business Grants and Programs
Nova Scotia offers both general and industry-specific grants to its businesses. One example is the Small Business Impact Grant that was available during special circumstances (such as providing relief during COVID-19 lockdowns). While those were one-time emergency grants, the province regularly runs programs to improve productivity and competitiveness of SMEs.
A key ongoing program is the Productivity and Innovation Voucher program. This voucher provides small businesses with a grant (voucher) to acquire services from Nova Scotia universities and colleges to help solve a business challenge. In the basic tier (Tier 1), a company can get up to $15,000 to engage an institution for applied research, engineering design, product testing, or business development tasks. If they successfully complete a Tier 1 project, they might later apply for Tier 2, which offers up to $25,000 for a deeper project. This grant is non-repayable and helps connect businesses with academic expertise, fostering innovation and new product development in the private sector.
For companies looking to expand internationally, Nova Scotia has had an Export Growth Program, which can cover a portion of costs for activities like attending trade shows, participating in trade missions, or marketing to foreign customers. Typically, such export support will reimburse around 50% of eligible costs up to a set maximum (e.g., $15,000 per year). This helps offset the high cost of travel and marketing abroad, encouraging Nova Scotia firms to seek new markets for their goods and services.
Another area of support is capital investment for innovation. Nova Scotia’s Innovation Rebate Program (IRP) is a significant incentive for scaling businesses making major investments (especially in manufacturing or processing). While aimed at larger projects, it’s worth noting: the IRP provides a rebate of up to 25% on approved capital expenditures (with rebates as high as $3 million for large projects). SMEs undertaking substantial modernization or expansion can benefit if their project fits the criteria (projects typically need to be over $1 million in size to qualify). This program essentially functions like a grant given after project completion, reducing the net cost of new facilities or equipment.
Additionally, Nova Scotia encourages sectors like clean technology, ocean technology, and agriculture through targeted funds. For example, a small agritech company might find grants through the Nova Scotia Department of Agriculture’s programs for innovative farming solutions, or a tidal energy startup might access funds under a clean tech initiative.
Small businesses in cultural industries can also find support. Nova Scotia has a Creative Industries Fund which helps companies in music, publishing, crafts, etc., to expand their sales and exports. Meanwhile, the film and television incentive in Nova Scotia provides rebates (via Nova Scotia Film & Television Production Incentive Fund) akin to New Brunswick’s program, generally around 25-32% of eligible Nova Scotia spending on screen productions, which sustains the province’s film industry and creates opportunities for local crews and businesses.
Overall, Nova Scotia business grants cover a broad range of needs – from boosting productivity and innovation, to supporting market expansion, to driving growth in key industries. Many of these are application-based and competitive, so businesses should approach them with well-defined projects and clear value propositions.
Graduate to Opportunity Wage Subsidy (NS)
One of Nova Scotia’s standout programs for youth employment is the Graduate to Opportunity (GTO) wage subsidy. GTO is designed to incentivize employers to hire recent post-secondary graduates into full-time jobs in their field of study, helping young talent stay and work in Nova Scotia. For employers, this program significantly reduces the payroll cost of a new hire in their first couple of years.
Here’s how the Graduate to Opportunity wage subsidy NS program works: Eligible employers (which include small businesses, start-ups, non-profits, and social enterprises in Nova Scotia) that hire a recent graduate can receive a subsidy covering 25% of the graduate’s first-year salary (up to a certain salary cap) and 12.5% of the second-year salary. The subsidy is paid out to the employer, effectively reimbursing that portion of wages. If the hired graduate is from an under-represented group (such as a racial minority, Indigenous, person with disabilities, or if the role is in rural Nova Scotia), the employer can receive an additional bonus on the first-year subsidy – often an extra 10%. In those cases, the first-year subsidy becomes 35% of salary, providing even greater incentive to hire diversely and inclusively.
For example, suppose a Nova Scotia tech company hires a new university graduate at a salary of $40,000. In the first year, the company could get $10,000 back (25%), and in the second year about $5,000 back (12.5%) from the GTO program. If that graduate is from a designated diverse group, the first-year reimbursement could be $14,000 (35%). This is a substantial saving on payroll that can free up funds for the business to invest in training the new hire or other needs.
The benefits of GTO are twofold: youth gain meaningful career opportunities in their home province, and employers get financial help to grow their teams with fresh talent. To participate, employers apply to the program around the time they are recruiting or just after hiring a recent graduate. They need to offer a full-time permanent position with a minimum salary (usually at least $30,000 or $35,000 to ensure quality jobs are being created). The graduate must have completed a post-secondary program within the last few years and be starting a career-related job.
Nova Scotia’s GTO program has been very popular, and the province has expanded it with variations like GTO Innovate (for roles focused on R&D or innovation, often requiring hires with advanced degrees like Masters or Ph.D., with even higher subsidy rates up to 50%) and GTO Grow (for hiring a second new graduate to help a business scale up). Together, these wage subsidies Atlantic Canada (with Nova Scotia as a prime example) illustrate how Atlantic provinces are tackling the challenge of retaining young skilled workers and helping businesses afford new hires.
Employers in Nova Scotia can also benefit from the Canada-Nova Scotia Job Grant, similar to the NB program, which covers up to two-thirds of training costs for employees (capped generally at $10,000 per trainee). Alongside GTO, programs like the Workplace Innovation and Productivity Skills Incentive (WIPSI) offer cost-sharing for employee training initiatives. WIPSI provides funding (often 50% of costs) for employers to train groups of employees or undertake company-wide skill development to improve productivity.
By combining hiring incentives like GTO and training cost rebates like the Job Grant or WIPSI, Nova Scotia companies can substantially reduce the expense of building a skilled workforce. These programs have eligibility criteria (for example, WIPSI requires a minimum training project size and that businesses be in certain sectors), but many SMEs qualify and take advantage of them.
In summary, Nova Scotia provides robust support for human capital development. The Graduate to Opportunity wage subsidy (NS) is a cornerstone for youth hiring, and it complements other grants and funding that together help Nova Scotian businesses expand their operations and capabilities.
Prince Edward Island: Small Business Grants and Investments
Prince Edward Island may be Canada’s smallest province, but it offers meaningful funding programs to its business community. The focus in PEI is often on supporting small local businesses in becoming more efficient and competitive, as well as encouraging innovation and exports. One of the key programs by name in PEI is the Prince Edward Island Small Business Investment Grant, among other initiatives:
Prince Edward Island Small Business Investment Grant
The Small Business Investment Grant is a flagship funding program in PEI aimed at helping companies improve their operations through the purchase of new assets. It works as a cost rebate for capital investments. Essentially, when an eligible small business in PEI buys new equipment, technology, or makes other productivity-enhancing capital expenditures, this program will refund a portion of those costs in the form of a grant.
Under the current terms, the Small Business Investment Grant provides 15% of the eligible capital costs back to the business, up to a maximum grant of $3,750 per year. This implies that if a business spends $25,000 on qualifying assets (for example, manufacturing equipment, specialized tools, software systems, or even building improvements), they can receive the full $3,750 grant (since $25,000 * 15% = $3,750). Smaller purchases receive the proportional 15% rebate as long as they meet minimum purchase thresholds (note: receipts under a small amount, like $50, won’t count, as the program is geared to significant investments).
To benefit, businesses must apply within the fiscal year of making the purchase. They need to be a PEI-based, for-profit business and either have at least one employee or be the full-time livelihood of the owner. Certain sectors are excluded from this grant, notably primary agriculture and fishing operations (since those sectors have separate support programs), as well as real estate businesses and financial institutions. The intent is to focus on small businesses in sectors like manufacturing, services, retail, tourism, processing, etc., where new investment can lead to growth.
For instance, if a small craft brewery on PEI buys a new canning machine for $10,000 to increase production efficiency, it could later apply and get $1,500 back from the Small Business Investment Grant. This lowers the effective cost of expansion. Similarly, a local IT firm upgrading its servers and hardware for $5,000 could get $750 returned.
The program is simple but effective – by directly reducing the cost of capital improvements, it incentivizes businesses to reinvest in themselves. It also injects money back into the local economy, as businesses are likely to spend on local suppliers or contractors for those improvements (when possible), knowing a portion will come back as a grant.
Businesses must keep proof of purchases and payments, and submit them with the grant application. The program operates on a yearly cycle (currently open from April 1, 2025, to March 31, 2026, for example), and funds are limited, so applying early in the fiscal year can be advantageous as funding for SMEs in Atlantic provinces is often first-come, first-served.
Other PEI Funding Programs and Supports
Beyond the Small Business Investment Grant, PEI firms can access other funding streams:
Innovation PEI Programs: Innovation PEI (a provincial agency) offers several assistance programs. For companies with projects geared towards innovation and expansion, the Innovation Fund can provide up to 50% of project costs (to a max of $50,000) for developing or commercializing new products or services. There are also specialized funds such as the Capital Acquisition Assistance program (which focuses on export-oriented businesses, offering support for larger capital investments beyond the scope of the Small Business grant) and the Marketing Assistance program (sharing the cost of marketing initiatives to expand sales outside PEI).
Sector-Specific Grants: PEI has targeted supports for key sectors like aerospace, bioscience, renewable energy, agriculture, and tourism. For example, in agriculture, there are cost-sharing grants for farmers adopting innovative technologies or adding value to their products. In tourism, the province might offer grants for enhancing tourism attractions or improving online marketing for tourism operators. The Arts and Culture sectors also have grants (e.g. through PEI Culture Action Plan) for creative industries development.
Wage Subsidy and Training Programs: Through SkillsPEI (the provincial employment and training arm), businesses in PEI can avail wage subsidies to hire unemployed workers or recent graduates. One such program is the Graduate Mentorship Program which encourages employers to hire recent post-secondary graduates by subsidizing a portion of wages for the first 6 months of employment while also providing the graduate with mentorship. Similarly, there are youth internship programs and a Canada-PEI Job Grant equivalent to help cover training costs (mirroring the job grant structure in other provinces). While not highlighted as a keyword in this article, these are worth noting as part of the funding ecosystem.
Tax Incentives: PEI offers tax credits analogous to other provinces – besides the R&D credit mentioned earlier, PEI has a Small Business Tax Credit that effectively keeps the provincial corporate tax low on the first $500k of active business income (like other provinces). Additionally, to spur investment, PEI has an Innovation and Development Tax Credit that private investors can get for investing in PEI businesses (similar to equity tax credits in other provinces), which indirectly benefits SMEs by encouraging angel investment.
For a small business in PEI, the strategy often involves layering these supports: for example, using the Small Business Investment Grant to buy equipment, applying for an Innovation PEI contribution to develop a new product line, and using a wage subsidy to hire a graduate to staff the expansion. By doing so, even a micro-enterprise can undertake growth that multiplies their capacity and market reach.
It’s advisable for PEI entrepreneurs to engage with a Business Development Officer at Innovation PEI or use the PEI Business Navigator service – a resource the government provides to help businesses identify relevant programs and navigate regulatory requirements. This one-on-one guidance can ensure companies don’t miss out on available funding. Prince Edward Island may have a smaller pool of programs compared to larger provinces, but they are well-tailored to local business needs and can have a big impact on the island’s tight-knit business community.
Newfoundland and Labrador: Business Funding Programs
Newfoundland and Labrador (NL) provides a range of funding programs focusing on business growth, regional development, and innovation. These include direct financing for businesses, non-repayable contributions for development projects, and incentives to hire and train employees. Companies in Newfoundland and Labrador should be aware of the Newfoundland business investment program and other initiatives discussed below:
Newfoundland Business Investment Program (BIP)
The Business Investment Program (BIP) is a cornerstone financing program delivered by the NL Department of Industry, Energy and Technology. Despite the name “investment program,” BIP primarily provides term loans (repayable funding) rather than grants, but it is still vital to mention because it addresses a key funding need for small and medium-sized enterprises. Through BIP, Newfoundland and Labrador offers loans to SMEs in strategic growth sectors to help them start up, expand, or modernize.
Key features of the Business Investment Program:
These are typically low-interest or interest-free loans with flexible repayment terms. The government essentially acts as a lender where traditional banks might be unwilling, particularly for businesses in rural areas or in sectors the province wants to develop (e.g., technology, manufacturing, ocean industries, tourism).
Loans can range in size depending on project needs, often up to a few hundred thousand dollars or more. The exact amount and interest terms are negotiated based on the project’s merits, job creation, and economic benefits.
The BIP loans can cover up to a certain percentage of a project’s cost (often 50% or more). For example, if a company in NL wants to invest in a $200,000 expansion to increase production, the province might lend $100,000 or $150,000 of that, with the company financing the rest through owner investment or bank financing. By doing so, the business’s financial burden and risk are reduced.
Sectors targeted by BIP include those that can diversify the economy and provide employment. This includes value-added manufacturing, information technology, aquaculture/fisheries processing innovation, cultural industries, and more. Traditional resource sectors might be covered under different programs, so BIP focuses on emerging and growth-oriented businesses.
While BIP loans need to be repaid, the advantage is accessibility and flexibility. Many small firms that cannot secure sufficient credit from commercial banks can turn to BIP to get their projects off the ground. The program administrators also often provide guidance and oversight, effectively becoming a partner in the business’s success. From an entrepreneur’s perspective, obtaining a BIP loan not only brings capital but also signals that the government sees promise in the venture.
It’s worth noting that the Newfoundland business investment program is one half of a larger funding framework often referred to as the Business Investment Fund. The other half is the Business Development Support program, which we cover next. Together, they offer a combination of loans and grants in NL.
Business Development Support Program (Grants for Growth)
Newfoundland and Labrador’s Business Development Support Program (BDSP) is a complementary program to the BIP loans, but BDSP provides non-repayable financial contributions (grants) to businesses for specific development activities. This program has been recently also known as the Business Growth Program, indicating its role in helping existing businesses grow and reach new markets.
The Business Development Support Program offers cost-sharing assistance in several categories, such as:
Marketing: Grants to develop marketing materials, attend trade shows, conduct market research, or implement e-commerce and branding initiatives.
Productivity Improvement: Funding to hire experts for process improvements, attain quality certifications, or implement lean manufacturing techniques that increase efficiency.
Skills Development: Support for employee training initiatives that are broader (for example, training a team on a new piece of equipment or software) – somewhat parallel to how a job grant works, but organized by the company’s growth plan.
Business Development: This can include exploring new export markets, business planning for expansion, or feasibility studies for new product lines.
Typically, the BDSP will fund a percentage of eligible costs – often 50% of project costs up to a certain maximum (commonly $100,000 per business per year, though specific caps for each category may vary). For instance, if a local manufacturing firm wants to execute a $50,000 marketing strategy to break into the New England US market, the program might provide $25,000 towards hiring marketing consultants and travel for trade shows.
The eligibility for BDSP generally requires that the business is a registered company in Newfoundland and Labrador, of small or medium size, and that the proposed project will lead to growth (in sales, employment, etc.). Some sectors might be emphasized based on government priorities, but most industries (except perhaps local retail or personal services focused only on local market) could qualify if they have growth potential beyond the status quo. An application would need to outline the project, its costs, and the expected benefits (like projected increase in revenue or jobs).
By utilizing BDSP grants, Newfoundland businesses can undertake improvement projects that they might have delayed due to cost. The grant offsets risk: a company can try out a new market or implement a new technology knowing that half the cost is borne by the government. This encourages more aggressive growth moves and upgrades in the province’s businesses.
For example, an NL seafood processing company could use BDSP funds to obtain international food safety certifications and marketing materials to enter European markets – a move that could be expensive upfront but transformative, and the grant makes it feasible. Or a craft producer could get support to develop an e-commerce platform and branding to sell nationally, where otherwise they might remain a local vendor only.
It’s also notable that the province has an Innovation and Business Investment Corporation (IBIC) which oversees these programs. This arms-length entity evaluates proposals and ensures that grants and loans are awarded to high-impact projects. The IBIC approach is to treat these supports as investments in the province’s economic capacity.
In summary, the Business Development Support Program (BDSP) in Newfoundland and Labrador serves as the grant side of the funding toolbox, directly complementing the BIP loans. Together, a business might receive a BDSP grant to develop a strategy or prototype, and then a BIP loan to finance the major expansion once the strategy is set. Newfoundland and Labrador clearly encourages businesses to plan, improve, and then grow with financial partnerships at each step.
Wage Subsidies and Training in Newfoundland and Labrador
Like the other Atlantic provinces, Newfoundland and Labrador offers wage subsidies Atlantic Canada style programs to incentivize hiring and training. One prominent program in NL is JobsNL, a wage subsidy initiative to help employers create new jobs.
Through JobsNL Wage Subsidy, employers can receive a subsidy for a portion of a new employee’s wages for a designated period. The structure has varied, but a typical example is:
For a long-term position: the subsidy might cover 60% of wages (up to a certain dollar per hour cap, e.g., $12/hour) for the first 14 weeks, and then possibly a higher percentage (say 80% up to $12/hour) for an additional period if the employer keeps the person on. In some cases, the program is split into options like JobsNL-42 (covering 42 weeks with staged subsidies) or JobsNL-28 (for shorter-term placements).
For shorter-term or seasonal jobs: a subsidy might cover around 50% of wages for a shorter period (10-14 weeks), helping businesses that have peak seasons or project-based work.
The JobsNL program is versatile – it can be used to hire youth, unemployed individuals, or even to support hiring from underrepresented groups depending on specific streams. The core idea is to lower the initial cost barrier of taking on a new employee, thereby encouraging businesses to create positions that they might not otherwise afford immediately. Over the subsidy period, the hope is the employee proves their value and the business can sustain the role fully afterward.
Another program is the Graduate Employment Program (GEP) which specifically targets recent post-secondary graduates (similar in spirit to Nova Scotia’s GTO). The GEP provides a subsidy (for example, around 40% of a grad’s wages for the first year, up to a maximum dollar amount) to employers who hire a new graduate in their field. This helps new grads get in-province opportunities and helps local businesses add fresh skills.
Newfoundland and Labrador also participates in the federal-provincial Canada Job Grant model via the Canada-Newfoundland and Labrador Job Grant. Employers in NL can apply to get two-thirds of the cost of training an employee reimbursed (to a max of $10,000 per employee), similar to NB and NS. This covers external training like courses, workshops, certification programs that improve the employee’s skills for the job.
Additionally, there are targeted wage subsidy programs such as:
Youth Summer Employment Programs (subsidies to hire students for summer jobs, encouraging employers to give work experience to youth).
Apprenticeship Wage Subsidy (helping trades employers hire apprentices by covering a portion of wages, thereby boosting the skilled trades workforce).
Diversity Hiring Initiatives (programs that support hiring people with disabilities, or support Indigenous employment in NL, etc., often in collaboration with organizations like the provincial government’s Office of Immigration and Multiculturalism or community groups).
For example, an NL small business in the IT sector wanting to grow might use the Canada-NL Job Grant to upskill its existing staff in cybersecurity, use JobsNL to hire a new programmer with part of their salary subsidized for 6 months, and maybe also use an apprenticeship subsidy if they take on a tech student as an intern. By layering these, the company can expand faster and contribute to training the workforce.
Employers interested in these programs typically apply through the provincial government’s employment and labor department (often via an online portal or a local employment center). It’s important to plan ahead – wage subsidy budgets can be limited and often applications need to be approved before the hire is made or the training starts.
Newfoundland and Labrador’s use of wage and training subsidies underscores the province’s commitment to job creation and workforce skill development. These incentives reduce unemployment and help businesses grow at the same time, making them a critical part of the overall funding strategy for SMEs in the province.
Strategies for Securing Funding in Atlantic Canada
Knowing about various grants and programs is the first step, but small businesses must also develop a smart approach to successfully obtain and utilize these funds. Here are some funding strategies and considerations for Atlantic Canadian businesses:
Plan and Prioritize Projects: Align your funding search with your business’s strategic goals. Whether you aim to adopt new technology, expand to a new market, or hire employees, identify the specific project and then target the programs designed for that purpose. For example, if your priority is digital modernization, focus on the e-commerce grant Atlantic Canada offers (CDAP) and possibly provincial digital adoption incentives. If workforce growth is key, look at wage subsidies and training grants first. By having a clear plan, you can avoid a scattershot approach and zero in on the most applicable funding.
Combine Multiple Programs: Many funding sources can be used in combination, provided you respect their rules about “stacking.” Most grants allow combining with others up to a certain total percentage of project costs. For instance, you might use an ACOA contribution (loan) together with a provincial grant and a tax credit, each covering different slices of a project. A concrete example: to undertake a $100,000 innovation project, you could potentially use a $50,000 ACOA loan, a $25,000 provincial innovation grant, and cover the rest with your own funds (and later reclaim some via SR&ED tax credits). This way, you minimize out-of-pocket expenses. Always check the terms – as seen in PEI’s program (75% limit on combined non-repayable aid), there are caps on total public assistance. Still, savvy businesses do leverage multiple programs sequentially or concurrently to fuel growth.
Meet Eligibility and Prepare Documentation: Each funding program comes with paperwork. Ensure your business meets basic eligibility (e.g., size, location, industry focus) before investing time in an application. Then, assemble strong documentation: a solid business plan or project plan, financial statements, quotes for project costs, and any required certificates (incorporation, tax compliance, etc.). When applying for innovation grants, be prepared to describe the innovation in clear, non-technical terms and outline the market potential. For hiring or training subsidies, have job descriptions and training outlines ready. A well-prepared application not only speeds up the process but also instills confidence in funding officers that your company can execute the project.
Emphasize Benefits to the Region: Government-funded programs are ultimately using taxpayer money to drive economic and social benefits. Successful applications typically highlight how the funding will lead to positive outcomes like job creation, increased exports, rural development, environmental improvements, or workforce skill enhancements in the Atlantic region. When writing proposals, explicitly connect your project to these broader outcomes. For example, if seeking an export grant, mention how entering a new market will increase production at your Nova Scotia facility and potentially create new jobs for locals. If applying for a wage subsidy to hire a graduate, note how it gives a young professional a career in PEI thereby helping retain talent in the province. Tailoring your case to the program’s objectives (which are usually stated on their websites or guides) can significantly improve your chances.
Stay Informed and Seek Expert Advice: The landscape of small business grants and funds is dynamic. Programs can be introduced, modified, or phased out with each government budget cycle. It’s wise to regularly check official government portals and press releases in your province for new opportunities. Additionally, consider reaching out to regional economic development organizations, industry associations, or the business development agencies (ACOA, Invest Nova Scotia, Innovation PEI, Opportunities NB) for guidance. Many businesses also consult with professional grant writers or business advisors, especially for complex applications like SR&ED tax credit claims or large project proposals. While this comes at a cost, it can pay off if it substantially increases the funding you secure.
Compliance and Follow-up: Once you receive funding, ensure you comply with all reporting requirements. This means keeping track of how every dollar of grant money is spent, saving invoices and receipts, and completing any progress or final reports on time. By doing this diligently, you maintain a good reputation, which can help in future funding applications (funding bodies often favor applicants who have successfully managed past grants). Moreover, if you demonstrate success with one project, you might be able to get extensions or apply for subsequent funding rounds to continue your growth trajectory.
Long-Term Funding Strategy: Treat grants and incentives as one component of your financial planning. They are excellent for reducing costs and accelerating growth, but they should supplement a healthy business model. Lenders and investors will look favorably on a business that effectively uses grants to boost results, but they still want to see that the business can eventually thrive without continuous grants. So, use these programs to build capacity – whether it’s higher sales, more efficient operations, or a skilled team – that will generate returns well beyond the grant period. For example, investing in R&D with help from tax credits can yield a new product line that drives revenue for years ahead; hiring a subsidized graduate can become a long-term valuable employee who contributes to growth.
By implementing these strategies, Atlantic Canadian SMEs can maximize the impact of the funding for SMEs in Atlantic provinces. The goal is not just to secure funding for its own sake, but to use it as a springboard to sustainable business success. Companies that plan ahead and integrate government funding into their broader financial and business strategy often find they can punch above their weight, achieving milestones faster than they could on private financing alone.
Conclusion
The Atlantic provinces of Canada present a rich landscape of grants, subsidies, and funding programs tailored to bolster small business success. From ACOA’s regional support and the Canada Digital Adoption Program Atlantic Canada initiatives, to province-specific programs like New Brunswick’s innovation funds, Nova Scotia business grants for productivity and talent, the Prince Edward Island Small Business Investment Grant, and Newfoundland and Labrador’s blend of business investment program loans and growth grants – entrepreneurs have numerous avenues to explore.
Each program comes with its own purpose and criteria, but collectively they address the key needs of businesses: financing expansion, adopting technology, innovating products, entering new markets, and building a skilled workforce. By understanding the range of Atlantic provinces business grants and incentives available, companies can strategically combine them to fuel their growth. Equally important is meeting the eligibility considerations and aligning projects with each program’s goals, ensuring applications stand out and succeed.
In essence, the funding ecosystem in Atlantic Canada is a partnership between businesses and government to drive economic prosperity. Small business owners who take the time to research and apply for these opportunities often find that the support can be transformative – turning ambitious plans into reality faster and with less financial strain. Whether it’s a tech startup in Fredericton accelerating development with an NBIF grant, a family business in Charlottetown upgrading equipment with a PEI investment grant, a film production in Moncton shooting with the help of NB media incentives, or a Halifax company hiring new graduates with wage subsidies, the stories of success are numerous.
For a formal business audience, the message is clear: taking advantage of small business grants Atlantic Canada has to offer is not just about free money; it’s about smart financial management and strategic growth. By staying informed and proactive, Atlantic entrepreneurs can ensure they leverage every available resource. The Atlantic Canada region is committed to seeing its businesses thrive, and the grants and funding programs described are practical tools to make that happen. With careful planning and execution, small businesses across New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador can capitalize on these funding strategies to innovate, expand, and contribute to the region’s economic vitality.
While the process can require effort, the return on investment in securing these funds can be substantial. In the competitive world of business, such support can be the differentiator that allows an Atlantic Canadian SME not only to survive but to truly prosper and scale. As the economic landscape evolves, so too will these programs, but the underlying principle remains: Atlantic Canada values its small businesses and is willing to invest in their success. Businesses that reciprocate by actively engaging with these opportunities will find a supportive hand at every step of their journey toward growth and sustainability.
