In 2025, Canadian businesses have unprecedented opportunities to fuel growth through government grants and tax credits. From federal programs that support expansion into new markets, to province-specific funds in Quebec and Ontario, a wide range of funding is available. This comprehensive guide breaks down the key business grants in Canada for 2025 and the tax credits you should know about. We’ll also cover actionable tips (like application deadlines and eligibility criteria), real examples of how businesses are leveraging these programs, and guidance on how to apply for business grants effectively. Finally, we’ll explain how helloDarwin can assist in navigating the government funding landscape, and answer frequently asked questions.
Whether you’re looking for Canadian government funding to scale up, innovate, hire talent, or invest in new technology, this guide will help you identify the right programs and make the most of them.
Federal Grants for Canadian Businesses in 2025
The federal government offers numerous grant programs to support businesses across Canada. These range from grants for exporting and innovation to funds for clean technology and workforce development. Below are some of the top federal grants available in 2025, along with key details like funding amounts, coverage, and eligibility:
CanExport SMEs – Up to $50,000 per project (covering 50% of costs). This flagship program helps small and medium-sized enterprises develop export markets. It can fund activities like marketing abroad, e-commerce website localization, market research, and attending trade shows. Eligibility: Canadian for-profit businesses with 1–500 employees and $100,000+ in annual revenue can apply. Timeline: CanExport SMEs typically accepts applications on a rolling (ongoing) basis each year until funds are allocated. In 2024 the program was highly competitive (only about 36% of 4,400+ applicants were approved), so businesses should apply early with a well-prepared plan.
CanExport Innovation – Up to $75,000 per project (covering 75% of costs). This grant supports R&D-focused partnerships and technology commercialization in international markets. It funds activities like developing collaborative R&D projects with foreign partners, travel to meet potential research partners, IP protection in other countries, and product demonstrations abroad. Eligibility: Canadian innovators, startups or researchers developing technology with commercial potential. Timeline: There are three application rounds in 2025: March 1, June 1, and September 1. Insight: Demand is very high – in fact, the funds for the first 2025 deadline were fully claimed within one week. This means if you plan to apply for the next round (e.g. September 1), prepare early and submit as soon as the intake opens.
Remission of Tariffs on U.S. Goods – Reimbursement program (covers eligible customs duties). In response to recent trade measures, the federal government introduced a process in 2025 for Canadian companies to request a remission (refund) of certain customs tariffs imposed on goods imported from the United States. Eligibility: Businesses that import critical inputs from the U.S. that were hit by new tariffs (as of March 4, 2025) can apply if those inputs cannot be sourced from within Canada or other countries, or if the tariffs are causing severe economic hardship. How it works: The government is establishing a review framework for applications. If approved, a company could be relieved from paying the tariff or get reimbursed for duties already paid. Actionable tip: Companies impacted by these tariffs should start gathering documentation to justify their request (e.g. proof there are no domestic alternatives) while awaiting the official application process details.
Low Carbon Economy Fund (Challenge Fund) – Up to $1,000,000 per project (typically covering 50%–75% of project costs). This fund supports projects that significantly reduce greenhouse gas emissions through proven clean technologies. What it covers: Examples of eligible projects include installing energy-efficient equipment or retrofits, implementing waste heat recovery systems, adding biomass or anaerobic digesters in industrial facilities, and other initiatives that cut emissions at scale. Eligibility: Businesses across Canada (often in manufacturing, agriculture, resource sectors, etc.) with projects that achieve substantial GHG reductions. Status: Open in 2025. Insight: This program is an excellent opportunity for companies pursuing sustainability and clean tech upgrades – not only do you reduce operating costs long-term through efficiency, but the grant can offset a large portion of the upfront investment.
Food Innovation Booster – Up to $100,000 (amount varies per project). This federal program provides quick, flexible support for small and medium-sized enterprises in the agri-food sector that are tackling innovation challenges. Uses: It can fund technical research, product development, overcoming a production obstacle, or other commercialization hurdles in food processing. Covered expenses include salaries of technical staff, consultant fees, materials and equipment for R&D, and related costs. Eligibility: Agri-food businesses with ≤499 employees and <$50 million in gross revenues. Status: Open and accepting applications. The idea is to “boost” projects that might otherwise stall due to technical problems – for example, if you need to reformulate a food product to extend shelf life or adapt a process for scale-up, this grant can inject funds to help you reach your goal faster.
Canada Pavilion Program – Reimbursement of eligible costs for international trade shows. This program is designed to make it easier for Canadian companies (especially food and beverage producers) to exhibit at prestigious global trade fairs – essentially “where the world shops.” What it covers: costs like trade show booth fees, shipping product samples, and travel expenses for events where Canadian companies showcase products to international buyers. The focus is on first-time exhibitors or companies entering new markets, with priority to small and medium exporters bringing innovative products. Benefit: By reimbursing a portion of trade show costs, the program lowers the risk for companies to explore new export markets and gain international exposure. It’s open in 2025; companies should apply ahead of major trade events to secure support.
Mitacs Accelerate – $15,000 per research internship (up to several interns, e.g. $30k for 2 interns, etc.). Mitacs is a well-established program connecting businesses with academic research talent. Through Accelerate, companies can hire graduate students or post-docs to work on R&D projects, with Mitacs providing a matching grant toward the intern’s stipend. How it works: Typically, a 4-6 month research project with an intern costs $7,500 to the company and $7,500 is matched by Mitacs (making the $15k total stipend). You can engage multiple interns or consecutive projects for larger initiatives. Eligibility: All industry sectors; projects must have a research component and involve collaboration with a Canadian university (Mitacs helps facilitate the academic partner). Timeline: Open year-round – applications can be submitted anytime, but plan a couple of months in advance of when you want the intern to start. Actionable insight: If you have an innovation challenge or product development need, consider tapping into the Mitacs program – you gain skilled researchers at a fraction of the cost, and often the university partner can provide additional expertise or lab resources.
ICTC Wage Subsidy (WIL Digital) – $7,000 per student placement (70% of wages up to $7k). The Information and Communications Technology Council (ICTC) offers a wage subsidy to encourage businesses to hire post-secondary students in digital economy roles. This is part of the Federal Student Work Placement Program. What it covers: up to 70% of a student intern’s wages (max $7,000) for a work term. Multiple interns can be hired with funding (each placement gets the subsidy). Eligibility: Any Canadian business or non-profit engaged in the digital economy or planning a digital/IT-related position can apply. The student must be a Canadian post-secondary student in a program such as business, tech, marketing, etc., and the role should provide meaningful work experience (examples: digital marketing assistant, software developer intern, business analyst intern). Timeline: Open and rolling intakes throughout 2025, but funding is limited each fiscal year. It’s wise to apply a couple of months before your target work term (e.g. apply in early spring for a summer intern) as these funds can run out. This program is a great way to build your talent pipeline while reducing hiring costs.
Real-Life Example (Federal): An Ontario-based tech startup combined multiple federal supports for rapid growth. They secured a CanExport SMEs grant to finance 50% of the costs of attending a major tech expo in the U.S. to find new clients. At the same time, they used the ICTC wage subsidy to hire two software engineering co-op students who built features for a new product line. Later, as they developed a cutting-edge AI solution, they brought in a PhD intern via Mitacs Accelerate, sharing the cost with the Mitacs grant. By leveraging these programs together, the startup entered a new market and accelerated R&D – all while significantly reducing their expenses.
Quebec-Specific Grants for 2025
Quebec offers a rich ecosystem of provincial grants to support businesses, often complementing federal programs. These Quebec business grants target everything from market expansion and exports to technology adoption, workforce development, and sustainable practices. Here are key Quebec-specific funding programs available in 2025:
PSCE – Stream 1 (Québec Market Expansion) – Up to $250,000 (50% of project costs). PSCE stands for a provincial program aimed at “Programme de Soutien à la Commercialisation des Entreprises” (Support for Business Commercialization). Stream 1 is focused on helping Quebec SMEs develop new markets within Quebec (especially stepping into new regions or supply chains in the province). It can fund marketing initiatives, adaptation of products for new local markets, and partnerships within Québec. Eligibility: Quebec-based companies with annual revenues under $100 million. Status: Opening Soon. (The 2025 application guide is pending release, so details may be updated.) Businesses planning to grow their Quebec market presence should prepare now – e.g., outline projects like entering a new Quebec region or selling to a major Quebec-based client – so they can apply once this stream opens.
PSCE – Stream 2 (Interprovincial Expansion) – Up to $100,000 (covers 50% of first project, 40% of second, 25% of third project). Stream 2 of PSCE supports Quebec SMEs in expanding to markets outside Quebec but within Canada. For example, a Montreal company looking to establish a sales office in Ontario or to distribute products in Western Canada could benefit. The diminishing co-funding (50% for your first expansion project, less for subsequent ones) encourages companies to undertake multiple growth projects with gradually reduced grant support. Eligibility: Quebec-based companies with annual revenues between $1 million and $100 million. Status: Opening Soon (2025 details to be confirmed). This stream emphasizes structured expansion projects and even encourages sustainable development approaches as businesses grow beyond Quebec. If you plan to venture into other provinces, watch for this program’s launch and prioritize your strongest expansion project for the highest support rate.
SIAM (Individual Support for Market Access) – Up to $100,000 (50% of costs). The SIAM grant is a specialized program funded by Aliments du Québec to help food processing companies increase their market reach within Quebec. It supports projects like getting your food products into new grocery chains or restaurant distribution, expanding to a new market segment, or boosting points-of-sale in Quebec. Eligible expenses: market research, marketing strategy development, trade show participation in Quebec, and other commercialization efforts. Status: The most recent intake just closed, but this grant has been offered regularly – food businesses should stay tuned for the next round. Insight: Quebec’s food industry is highly competitive; SIAM funding can give local food producers a crucial boost in securing shelf space and growing sales domestically before leaping to export markets.
SEB (Support for Biofood Exports) – Up to $250,000 (50% of costs). Another agri-food focused program, the SEB grant is funded by Quebec’s Ministry of Agriculture, Fisheries and Food (MAPAQ) along with the province’s Export Group. It aims to increase the presence of Quebec’s biofood products (food, beverage, agricultural goods) in markets outside Quebec (rest of Canada or international). Uses: funding for international marketing campaigns, hiring a market development specialist for export, attending trade shows outside Quebec, or even bringing foreign buyers to visit your operations in Quebec. Status: The latest call was recently closed. Companies in the food sector planning export initiatives should watch for future availability. Eligibility: Quebec biofood businesses ready to scale up export sales. A strong export plan and some initial traction in external markets will strengthen your application when this reopens.
NovaScience Program – Up to $105,000 (50% of salaries for new hires; $30,000 cap for junior position, $75,000 for senior). NovaScience is a talent-focused grant to help companies hire new employees in roles that support innovation and digital transformation. It has two streams: Junior (for hiring young professionals or recent graduates) and Senior (for hiring experienced experts). For example, you could hire a junior data analyst or a senior technology manager and get half their salary covered for a period. This not only helps companies build capacity in science, tech, or innovation roles, but also aims to develop the next generation of skilled workers in Quebec’s innovation economy. Status: Opening Soon for 2025. If you anticipate bringing on new talent for innovation projects, prepare job descriptions and training plans now to quickly apply when NovaScience opens, as it often runs on a first-come, first-served basis until funds are exhausted.
ESSOR – Stream 1 – Up to $120,000 total (50% of costs), divided into sub-streams: 1A up to $50k, 1B up to $20k, 1C up to $50k. The ESSOR program is a broad Quebec government funding program to support business investment and expansion projects. Stream 1 specifically covers different components:
Stream 1A: Financial support for feasibility studies and planning related to investment projects aimed at improving competitiveness.
Stream 1B: Support for technological and digital investments that boost productivity (e.g. adopting new software, equipment, or advanced technologies).
Stream 1C: Support for major investment projects and digital transformation of businesses (often larger-scale expansions or modernization). Each sub-stream has its own cap, but combined a company could potentially tap up to $120k. Eligibility: Quebec businesses undertaking projects that will improve their competitiveness or expand operations, often with a focus on innovation or tech adoption. Status: Open. Insight: ESSOR is a key program for manufacturing and innovative firms in Quebec. For example, if you plan to invest in new production equipment, ESSOR 1B/1C can offset some costs; if you need to first conduct a feasibility or engineering study, 1A can help fund that groundwork.
SIPEM (Programme d’Innovation en Productivité des Entreprises Manufacturières) – Up to $500,000 (50% of costs). SIPEM is a program to support technological innovation and productivity improvement in Quebec’s manufacturing sector. It uniquely offers funding in two phases: up to $15,000 for creating a project specifications document (to identify and plan a technology project), and up to $500,000 for project implementation. Eligible projects: development of innovative microelectronic or software solutions to optimize production lines, integration of advanced technologies into manufacturing processes, creation of custom software ecosystems for better data management, etc. Essentially, if a manufacturer has an idea to digitalize or modernize its operations, SIPEM can fund both the planning (writing specs, hiring experts to scope the solution) and the execution (building or installing the solution). Status: Open. Eligibility: Quebec manufacturing companies (typically small to mid-sized) with projects that will demonstrably boost productivity. Actionable tip: Even if you’re not 100% ready to implement, consider using SIPEM’s initial $15k support to hire a consultant or engineer to develop a solid plan – this makes it easier to proceed with implementation and apply for the larger grant portion.
Écoleader Fund – Up to $80,000 (75% of project costs). The Écoleader Fund is a provincial program dedicated to helping businesses adopt eco-responsible practices and clean technologies. It has two streams: one for implementing eco-friendly business practices (max $30k support), and one for adopting clean technology solutions (max $50k support). Combined, a business could potentially get $80k if undertaking projects in both areas. Eligible initiatives: hiring experts to conduct environmental impact assessments, getting certifications like B-Corp or green standards, developing action plans for waste reduction or energy efficiency (Stream 1), as well as purchasing or installing clean tech equipment, or piloting innovative green technologies in operations (Stream 2). Eligibility: Businesses of all sizes and sectors in Quebec that are committed to improving their environmental performance. Status: Open. The program is managed by the Fonds d’action québécois pour le développement durable (FAQDD) on behalf of the government. Insight: With sustainability becoming a competitive factor, Écoleader helps reduce the cost barrier of going green. For example, a manufacturer could use Stream 1 funds to hire a consultant to devise a waste reduction strategy, then use Stream 2 funds to implement a recycling system or install an energy-saving machine.
Écoemballage+ – Up to $350,000 total (75% of costs), split into two streams: up to $50k under Stream 1 and up to $300k under Stream 2. Écoemballage+ is an initiative targeting the food processing and packaging industry, funded by MAPAQ and administered by FAQDD. Its goal is to foster eco-design of food packaging – meaning to develop and adopt packaging that is recyclable, compostable, or has a reduced environmental footprint.
Stream 1: Business support for eco-design projects (e.g. hiring specialists to analyze packaging, conduct studies, test new materials).
Stream 2: Implementation of innovative projects with a broader collective impact (e.g. a consortium of companies working on sustainable packaging solutions, or a larger company rolling out a major eco-packaging innovation that could influence industry practices). Eligibility: Quebec companies involved in food processing or packaging. Status: Open. Actionable insight: If you’re a food or beverage producer, consider using Écoemballage+ to overhaul your packaging – not only can this funding cover a big chunk of costs, but the result (greener packaging) can make your products more attractive to eco-conscious consumers and retailers.
Real-Life Example (Quebec): A Montréal-based food manufacturer recently leveraged multiple Quebec grants to expand and innovate. First, they used ESSOR Stream 1A funding to conduct a feasibility study for a new production line. With promising results, they then tapped a SIPEM grant to implement automation software and sensors to improve factory output. To ensure the expansion was sustainable, they secured support from the Écoleader Fund to hire an expert who helped them reduce waste and energy use in the new line. Finally, as their new product was ready, they prepared to enter other provincial markets using PSCE Stream 2 for interprovincial marketing. By combining these programs, the company substantially grew its business while saving hundreds of thousands of dollars in costs.
Ontario-Specific Grants for 2025
Ontario also provides a robust set of grant programs tailored to its economic priorities. These Ontario business grants help manufacturers innovate, support startups and internships, modernize key industries like automotive, and address regional development needs. Here are important Ontario-specific grants in 2025:
Advanced Manufacturing and Innovation Competitiveness (AMIC) Stream – Up to $500,000 (15% of eligible project costs). The AMIC program is designed to support small and medium-sized manufacturers in Ontario that are investing to scale up, modernize, or adopt new technologies. Uses: funding can offset costs of purchasing advanced machinery or equipment, implementing new technologies or software systems, developing employee skills related to the project, and even certain consulting or operational costs tied to the expansion. Eligibility: Ontario manufacturers (often minimum 3+ employees and existing operations) planning significant projects that improve productivity, innovation, and competitiveness. Status: Open. Note: Typically, this program requires a solid business plan and job creation or retention outcomes. It may be part of Ontario’s Regional Development Program, meaning certain regions or sectors could be prioritized. If you’re aiming for the full $500k, you’d be undertaking roughly a $3.3 million project (since the grant is 15%). Ensure you have the remaining funding and a timeline for the project when applying.
Venture for Canada (VFC) Internship Program – Up to $7,000 per intern (covers 70% of a student’s wages). Venture for Canada is a non-profit that, in partnership with the federal and provincial governments, helps small businesses and start-ups hire students and recent grads. In Ontario, the VFC “Hire an Intern” grant subsidizes the cost of bringing a student intern into your company. How it works: You can hire a post-secondary student (college or university) for a work term, and VFC will reimburse up to 70% of their wages (to a max of $7,000). Eligibility: Ontario-based startups, scale-ups or SMEs (often VFC targets companies that might not have dedicated HR capacity to run internship programs). The roles can be in various fields – from business and marketing to software development – as long as they offer entrepreneurial work experience to the student. Status: Open (applications typically accepted for summer, fall, and winter internship periods). This program not only reduces your payroll costs, but also provides training to interns so they can add value from day one. For small companies with limited budgets, it’s an excellent way to get extra help and new ideas onboard.
Ontario Automotive Modernization Program (O-AMP) – Up to $300,000 (50% of project costs). O-AMP is specifically targeted at Ontario’s automotive supply chain companies (typically small and mid-sized auto parts manufacturers or toolers) to help them adopt cutting-edge technology and lean processes. Eligible projects: implementing Industry 4.0 technologies (like automation, IoT sensors, advanced robotics in production), improving operational efficiency through lean manufacturing training and software, or even developing new products to serve the electric and autonomous vehicle markets. Eligibility: Ontario-based businesses (SMEs) in the automotive parts and tooling sector. Status: Open, usually with periodic intake windows for applications. Insight: The program will match your investment dollar-for-dollar up to $300k, effectively halving the cost of modernization projects. For example, if you plan a $400,000 upgrade to your manufacturing execution system and robotics, O-AMP could cover $200,000 of that. Given the rapid transformation of the auto industry (EVs, advanced safety tech, etc.), this grant is a timely opportunity to stay competitive.
Canada-Ontario Job Grant (COJG) – Up to $10,000 per person for training (covers 50%–100% of training costs depending on company size). COJG is a well-known program to help employers upskill their workforce. How it works: Employers identify training that their employees or new hires need – for example, a software course, technical certification, management training, etc. – and the grant covers a major portion of the cost. For small businesses (<50 employees), the grant can cover up to 5/6 of the training cost (the employer pays as little as one-sixth, if certain criteria are met, such as training a new hire or a worker from a vulnerable group). For larger businesses, it generally covers 50% of training costs up to $10k per trainee. Eligibility: Almost any Ontario employer, in any sector, with a plan to train employees (the training should be delivered by a third-party trainer like a college, private trainer, or online course provider). Status: Open and continuously accepting applications. Actionable tip: This grant is relatively straightforward – it’s a great way to invest in your team’s skills. For instance, if your company is adopting a new software platform, COJG could pay for an expert to come in and train your staff, significantly offsetting what you’d otherwise spend on professional development.
Northern Ontario Heritage Fund (NOHFC) – Northern Business Opportunity Program – Up to $1,000,000 (combination of grant and repayable loan). NOHFC offers various funding streams to stimulate economic development in Northern Ontario. The Northern Business Opportunity Program is aimed at helping businesses start up, expand, or innovate in the north, which includes regions like Thunder Bay, Sudbury, North Bay, Timmins and other northern communities. Funding details: This program can provide:
A grant of up to 20% of eligible project costs (to a max of $400,000 grant),
Plus, if needed, a repayable loan of up to 30% of costs (max $600,000 loan),
Or in some cases, a larger loan-only funding (up to 50% of costs, max $1,000,000). Eligible expenses: building or expanding facilities (construction costs), leasehold improvements, new or used equipment purchases, third-party training costs for staff, land servicing and infrastructure to support a business expansion, as well as R&D and technology commercialization expenses. Eligibility: Businesses operating in Northern Ontario that will create jobs or otherwise benefit the northern economy. Both startups and existing companies can apply, but there’s an emphasis on projects that drive growth in priority sectors (like mining supply, forestry, tourism, advanced manufacturing, etc.) in the region. Status: Open, with continuous intake (projects are typically evaluated by NOHFC periodically). Insight: If you’re in Northern Ontario or considering an expansion there, this program is extremely valuable as it combines grants and low-interest loans to make larger projects feasible. For example, a mining equipment manufacturer in Sudbury could receive a $300k grant and a $500k loan from NOHFC towards a $1.6 million facility expansion – drastically reducing the upfront capital needed.
Real-Life Example (Ontario): A small manufacturer in Toronto planned to upgrade its production line with robotics and new software. They successfully applied to the AMIC program and received $400,000 (15%) toward a $2.67 million expansion, allowing them to purchase state-of-the-art equipment. Simultaneously, they took advantage of the COJG to train their staff on the new machinery – the grant covered thousands of dollars in training courses. Meanwhile, another company – a tech startup in Ottawa – utilized the Venture for Canada internship grant to hire a software development intern at minimal cost, and when their product development progressed, they claimed OIDMTC tax credits (more on that below) to recover a portion of their software labor costs. These examples show how Ontario firms are stacking multiple funding tools to reduce costs and drive growth.
Key Tax Credits for Businesses in 2025
In addition to grants, governments offer tax credits that can be just as valuable for businesses. Tax credits typically reduce your corporate taxes or provide a refund based on certain expenditures (like R&D or investments). They are an important part of Canadian government funding support, often complementing the direct grant programs. Here are some key tax credits available in 2025:
Scientific Research & Experimental Development (SR&ED) Tax Credit – Refundable tax credit up to 35% of R&D costs (15% base rate + enhancements). SR&ED is a federal tax incentive program, and it’s one of the largest sources of funding for innovation in Canada. What it covers: a broad range of R&D activities – basically any systematic investigation or experiment to advance science or technology, even if unsuccessful. Eligible expenses include salaries for R&D staff, a large portion of contractor fees (typically 80%), and materials consumed in R&D. Benefit: For Canadian-controlled small businesses (CCPCs) under certain income and taxable capital thresholds, SR&ED can refund 35% of qualified R&D expenditures, up to a certain limit, in cash. Larger companies or expenditures beyond the small-business limit get a 15% credit (which may be non-refundable, meaning it only offsets taxes owing). Claim process: Through your tax return with a detailed technical report, usually filed by 18 months after the fiscal year in which the R&D occurred. Insight: SR&ED is effectively “money on the table” for any company doing innovation – from creating new software, developing a new product formulation, to improving a manufacturing process. To maximize your claim, maintain good documentation of your R&D projects. Many companies pair SR&ED with grants (for example, you can do an R&D project with partial grant funding and still claim SR&ED on the portion you spent – just be mindful of the interaction rules).
Ontario Made Manufacturing Investment Tax Credit (OMMITC) – 10% refundable tax credit on qualifying investments, up to $2 million credit per year. This is a new Ontario provincial tax credit introduced to spur investment in manufacturing. What qualifies: Capital investments in buildings, machinery, and equipment used in manufacturing or processing in Ontario. For example, if you build or renovate a production facility, or buy new manufacturing equipment, those costs could qualify. Benefit: The credit is 10% of the eligible investment. The maximum credit of $2 million annually suggests up to $20 million in capital investment can be incentivized per year per company. Claiming: The credit is refundable, meaning even if your company doesn’t owe Ontario tax (or is at a loss), you can receive the credit amount as a refund. It’s claimed through the corporate tax filing. Eligibility: Ontario-based corporations making qualifying investments after March 2023 (the credit is in effect for investments made in the 2023–2025 period and beyond, as legislated). Actionable insight: If you’re planning a major factory upgrade or expansion in Ontario, be aware of OMMITC – it’s essentially a 10% off coupon from the provincial government on your capital costs. This credit can often be combined with federal programs or other Ontario grants, boosting your total support.
Ontario Interactive Digital Media Tax Credit (OIDMTC) – 35% to 40% refundable tax credit on labor and marketing costs for digital media production. OIDMTC is a staple for Ontario’s digital media industry (e.g. video game developers, e-learning software producers, interactive mobile app creators). How it works: If you develop an eligible interactive digital media product in Ontario, you can claim a credit on the salaries of employees involved in development, and certain marketing and distribution expenses. The rate is typically 40% for products developed on your own (i.e., not for a client under contract), and 35% for products made under a fee-for-service arrangement or for larger game corporations. Eligibility: The product generally must be interactive (users make choices, e.g. games or educational software) and meets certain content and timeline criteria (it usually needs a significant portion developed in Ontario). Both small studios and large companies can apply. Benefit: The credit is refundable, so it’s a direct cash benefit. There’s no fixed cap per company – large projects can yield substantial credits. Timeline: Claims are made via your tax return after the product development year, and it can take time (often many months) for processing due to the review of eligibility. Insight: This tax credit is a major reason many game studios and interactive media companies thrive in Ontario. It effectively returns a big portion of your development payroll costs, freeing up cash to reinvest or take on more projects. If you’re developing a digital product, ensure you register the product if required and maintain records of all labor and marketing expenditures for the claim.
Tax Credit for Research, Innovation & Commercialization (CRIC) – 30% refundable tax credit on first $1M of eligible expenditures, 20% on the remainder. The CRIC is a new Quebec tax credit (recently introduced in Quebec’s budget) aimed at boosting R&D and pre-commercialization efforts for companies of all sizes. It replaces or consolidates some older Quebec credits with a more generous, easier-to-use incentive. What it covers: A wide scope of innovation-related expenses – including salaries for R&D and commercialization activities, eligible machinery and equipment for innovation projects, and a portion (up to 50%) of contractor costs for R&D. Benefit: All companies, regardless of size or tax payable, can get 30% back on the first $1,000,000 of qualifying expenditures and 20% on any amount beyond that. Importantly, CRIC is fully refundable, meaning even a pre-revenue startup can get the credit as a cash refund. Example: If a tech company in Quebec spends $1.5 million on developing a new product prototype (combining staff, equipment, and some contractor costs), they could receive $300k for the first $1M and $100k for the next $500k – totaling $400k back. Eligibility: Quebec-based companies undertaking R&D, innovation or commercialization projects. Timeline: Comes into effect for current and upcoming tax years (check specific effective dates and transitional rules if you used prior credits). Actionable tip: Combine the CRIC with the federal SR&ED credit for maximum benefit. Quebec companies can potentially get both the federal 15-35% and the provincial 20-30% on R&D costs – a powerful combination that significantly lowers net R&D spending. Proper planning and consultation with a tax professional or a funding advisor (like helloDarwin’s experts) can ensure you claim everything you’re entitled to.
Clean Technology Investment Tax Credit – 30% refundable tax credit on capital costs of clean tech assets. As part of Canada’s push for a cleaner economy, the federal government introduced a Clean Technology Investment Tax Credit in 2023, which is available through 2034. What it covers: Investments in eligible clean technology equipment and machinery. This includes equipment for generating renewable energy (solar, wind, hydro), energy storage systems (like batteries), heat pumps and related heating equipment, and zero-emission industrial vehicles or equipment. If your business buys and installs such assets, 30% of the capital cost can be claimed as a tax credit. Eligibility: Businesses across Canada investing in qualifying clean tech for use in their operations. The credit is particularly aimed at industries like manufacturing, agriculture, energy, and others that are adopting renewables or cleaner technologies. Refundable: Yes, meaning you can get the credit amount even if you owe little to no tax. Why it matters: This credit substantially cuts the cost of going green. For instance, if a farm invests $100,000 in solar panels to power its facilities, it can get $30,000 back via this credit, on top of any other incentives or savings on energy bills. Combined with programs like the Low Carbon Economy Fund or provincial rebates, businesses can make clean tech investments that pay for themselves much quicker.
Note: Each tax credit has specific rules and claiming procedures, so it’s advisable to consult with an accountant or a funding specialist. But broadly, these credits are entitlements – if you meet the criteria and spend in the right areas, you can claim them. Unlike grants, you don’t compete against other applicants for a limited budget (though you do need to comply with all guidelines). Smart businesses often plan projects with these tax incentives in mind from the start.
How helloDarwin Helps Businesses Secure Funding
Navigating the landscape of grants and tax credits can be challenging – there are thousands of programs, each with its own rules, deadlines, and application process. This is where helloDarwin comes in. helloDarwin is at the heart of growth and optimization for Canadian businesses, acting as a partner in finding and securing government funding. Here’s how helloDarwin can help your company maximize these opportunities:
Funding Discovery and Strategy: helloDarwin maintains a comprehensive database of over 3,000+ grants and incentives across federal, provincial, and local levels. Their platform and team continuously track what funding is available, upcoming program openings, and changes to existing programs. They can quickly identify which grants or credits fit your business’s profile and projects. Example: Not sure if there’s a grant for your planned expansion or R&D project? helloDarwin’s advisors can pinpoint several matches (e.g. a federal export grant, a provincial innovation grant, and applicable tax credits) and craft a strategy to use them together.
Expert Guidance and Application Support: Applying for government funding can be paperwork-intensive and competitive. helloDarwin provides experts in sourcing and grant application writing to help prepare strong proposals. They assist with the entire application process – compiling required documents, filling forms, writing project descriptions and budgets that align with funders’ criteria, and ensuring nothing is missed. Compliance: They also coordinate with stakeholders and make sure your application meets all guidelines (e.g. you have the necessary quotes, you meet eligibility like revenue or industry focus, etc.). This greatly increases approval chances. Clients essentially get an in-house grant writing team without the overhead.
Monitoring & Tracking: Once applications are submitted (or funds obtained), helloDarwin offers a monitoring and tracking platform. Clients get real-time access to the status of their funding applications and grants. You can see which grants are planned, which are in progress, and which have been approved or received. This helps in managing timelines (for example, knowing when to expect funds or when to report on how you used a grant). The platform can also alert you to upcoming deadlines – ensuring renewals or new applications are done on time each year.
Business Matchmaking for Projects: Many grants (especially for technology adoption or capital projects) require engaging external suppliers – for instance, getting quotes from equipment vendors, hiring a consultant, or finding a tech developer. helloDarwin operates a matching platform with 6,000+ verified suppliers and experts. They can help you quickly obtain bids or partner with the right service providers needed for your funded project. For example, if you get a grant for a digital transformation project, helloDarwin can connect you with vetted software developers or IT consultants to execute the work. They even assist in creating and reviewing RFPs (requests for proposals) to ensure you get quality proposals from suppliers. This is invaluable for meeting grant requirements and executing your project successfully.
End-to-End Support: helloDarwin’s team includes advisors specialized in various domains – digital transformation, sustainability, manufacturing, agri-food, etc. – areas that often align with government funding priorities. They provide end-to-end support: from initial funding strategy, through application, to final reporting. If you become a helloDarwin client, you are paired with an account manager who will stay with you through the process. They can also help sequence multiple funding programs over time. For instance, they might advise you to apply for a feasibility study grant first, then an investment grant, and later claim tax credits – orchestrating a multi-program approach to fund a big project.
Why this matters: By using helloDarwin’s services, businesses drastically reduce the time and guesswork involved in securing grants. More importantly, they increase their success rate and often discover funding sources they weren’t aware of. The result is actionable funding insights turned into actual dollars – helping you undertake projects that fuel growth, which you might have delayed or shelved otherwise.
Real-Life Impact: Consider a mid-sized Quebec manufacturing firm that engaged helloDarwin. They wanted to automate their production and expand capacity but were concerned about the cost. helloDarwin identified several programs: an ESSOR grant for feasibility studies, SIPEM for the tech implementation, an Écoleader grant for an energy-efficient upgrade, and SR&ED tax credits for the R&D element. The helloDarwin team helped the company apply to all of these successfully. Over 18 months, the company received a combination of grants and credits totaling nearly $600,000 – covering a significant portion of their project cost. Without this coordinated approach, the firm might have only accessed a fraction of that support.
In summary, helloDarwin acts as a catalyst, ensuring you’re not leaving any funding opportunity on the table and that your applications are polished and persuasive. Their assistance lets you focus on running your business, while they handle the complex funding maze.
FAQs: Frequently Asked Questions about Business Grants and Funding
Q: What types of government funding are available for businesses in Canada? A: Broadly, businesses can access grants, contributions, loans, and tax credits. Grants and contributions are non-repayable funds for specific purposes (e.g., hiring, expansion, R&D, exporting). Loans (often with low interest) are offered by some programs but must be repaid. Tax credits allow you to recover part of your expenses by reducing taxes owed or giving a refund for certain activities (like research or investing in equipment). This guide focused on grants and tax credits since they’re highly sought-after in 2025. There are also sector-specific funds and wage subsidies. Essentially, no matter your business stage or industry, there’s likely some form of government funding you can leverage – from startup grants to incentives for multinationals.
Q: How do I apply for business grants in Canada? A: Applying for business grants involves a few key steps:
Find the right program: Look for grants that match your business’s size, location, industry, and project. (This guide and resources like helloDarwin’s platform help identify suitable programs.)
Review eligibility and deadlines: Once you spot a grant, read the eligibility criteria carefully (e.g., required years in business, revenue range, project type) and note any application deadlines or intake dates.
Prepare your proposal/application: Most grants require a proposal or application form. You’ll typically need to provide a description of your project (what you plan to do with the funds), a budget or cost estimates, information about your business (financial statements, business plan, etc.), and how your project meets the program’s objectives (for example, job creation, innovation, export growth).
Gather supporting documents: This can include quotes from suppliers, resumes of key team members, letters of support, or proof of incorporation. Ensure all required paperwork is included.
Submit the application: Many programs use online portals now. Submit before the deadline, and double-check that everything is complete. Incomplete applications are a common reason for rejection.
Follow up: After submission, be patient. It can take weeks or months for a decision. Some programs might contact you for additional info or an interview. Be responsive and provide any follow-up promptly.
Tip: It’s often helpful to consult with a grant writer or service (like helloDarwin) for step 1 and 3 – they can strengthen your proposal and ensure you tick all the boxes. Also, always keep a copy of what you submitted for your records.
Q: What are my chances of getting a grant? Are these programs very competitive? A: It varies by program. Some grants (especially federal ones like CanExport or popular provincial funds) are competitive, meaning many applicants for limited funds. For instance, as noted, only about 36% of CanExport SME applicants were approved in a recent year. Others, like tax credits or certain continuous intake grants, are entitlement-based – if you meet the criteria and apply correctly, you will get the funding (examples include SR&ED tax credits or the Ontario Job Grant). Generally, smaller grants or those for specific regions might have higher success rates, while big-dollar programs attract more competition. To improve your chances:
Ensure your project clearly aligns with the program’s goals (e.g., if it’s an innovation grant, highlight the innovative aspects and potential benefits).
Don’t wait until the last minute; some programs give out funds on a first-come, first-served basis until the budget is gone.
Double-check eligibility and only apply if you truly qualify. Ineligible applications waste time and are always rejected.
If rejected, seek feedback (if available) and try again next round or apply to a different program. Persistence can pay off.
Q: Do I have to pay back grants or tax credits? A: Grants and contributions do not need to be repaid, as long as you fulfill the obligations of the funding agreement (using the funds for the approved project, reporting on results, etc.). They are essentially “free money” for your business project, but they come with accountability. Tax credits similarly do not need to be repaid; they reduce taxes or give refunds for certain spending – once received, that money is yours to keep. However, if it’s later found that you didn’t actually meet the requirements (say, an audit finds some expenses weren’t eligible), you might have to return that portion. So always use funds as intended and maintain records. Loans (if you take a government-funded business loan) do have to be repaid under the agreed terms. In our discussion, we focused on non-repayable funds. As long as you follow the rules, grants and tax credit refunds are non-repayable.
Q: Can I combine multiple grants or programs for the same project? A: Yes, often you can – this is called “stacking” funding – but with some caveats. Many programs allow stacking up to a certain limit, meaning you can use more than one source as long as the total government funding doesn’t exceed a percentage of the project cost (commonly 75% or 100% at most). For example, you might use a federal grant and a provincial grant together on one project, or a grant plus a tax credit. It’s important to disclose all sources of funding in applications and ensure compliance with each program’s rules. Combining funds is a smart way to cover different aspects: one grant might pay for equipment, another for training, and a tax credit refunds R&D salaries. Our case examples in this article illustrate how businesses used multiple programs in tandem. Tip: Plan the budget carefully – if one grant covers 50% and allows stacking, you could potentially use another for 25%, and still have to cover 25% yourself. Programs like SR&ED can be claimed after the fact, so they often act as bonus funding even if you had grants. Always check the stacking limit (if stated in the program guidelines) or ask the funding agency.
Q: What if my business is a startup or pre-revenue? Are there grants for new businesses? A: There are some grants and lots of related support for startups, but they can be a bit harder to obtain than those for established businesses. Many government grants require that you’ve been in operation for a minimum period or have some revenue, to show viability. That said, there are innovation grants and regional startup funds that specifically cater to new companies. For example, early-stage tech startups might get prototype development grants or mentorship and small funding through incubator programs. The federal Industrial Research Assistance Program (IRAP) often supports small innovators (including early-stage ones) with advisory services and funding for R&D. Some provinces have entrepreneur grants or seed funds (often for youth or specific industries like agri-food or clean tech startups). Additionally, wage subsidies (like hiring interns or recent grads) are very accessible to startups to help build your team. Advice: If you’re a startup, focus on programs that emphasize innovation and R&D, or look at local grants (municipal or regional economic development agencies often have small grants for new businesses). Also consider competitions and pitch grants which are essentially grants awarded via contests for startups. As you gain a bit of traction (revenues, customers), more funding options will open up.
Q: How can I find out about new grants or when programs open? A: Staying informed is key. Governments often announce new programs or changes in budgets (e.g., in the federal or provincial budget releases each year). To keep track:
Online search and portals: Websites like the Government of Canada’s business benefits finder, provincial government funding pages, and industry association sites regularly list available programs.
helloDarwin’s platform: helloDarwin aggregates funding opportunities and updates timelines – using such a service means you get a curated list relevant to your business, without having to search dozens of sites.
Newsletters and alerts: Subscribe to newsletters from government funding agencies or consultants. They will send announcements when a grant opens or when a deadline is nearing.
Webinars and events: Just like the helloDarwin webinar that this guide is based on, many organizations host info sessions. These can be invaluable for learning what’s out there and asking specific questions.
Professional networks: Accountants, economic development officers, and industry peers often know about grants. Don’t hesitate to ask around or join business forums.
Finally, once you identify key programs that fit your needs (from the lists in this guide, for instance), mark their typical timelines on your calendar. Many grants occur annually or bi-annually around the same time. Preparing in advance of the opening date can significantly improve the quality of your application.
Conclusion: Securing government funding in 2025 is a tangible way to reduce costs and accelerate your business plans. By understanding the landscape of business grants in Canada 2025, tapping into the right Canadian government funding programs, and perhaps partnering with experts like helloDarwin, you can unlock significant financial support. Use this guide as a starting point, stay proactive in your search, and don’t be afraid to seek help in the application process. With careful planning and effort, your business could be the next success story to benefit from these grants and tax credits, turning ambitious projects into reality. Here’s to your growth and innovation in 2025 and beyond!
