Government funding is one of the most effective tools available to accelerate business growth, especially for companies in Ontario that operate in competitive industries or plan to expand into new markets. Unlike private financing, which often requires giving up equity or taking on high-interest debt, government grants, loans, and tax credits are designed to support strategic investments without diluting ownership. By reducing the financial burden of large projects, they allow companies to take calculated risks such as entering new markets, adopting advanced technologies, or launching innovative products without jeopardizing cash flow. The real challenge lies not in whether such programs exist but in knowing how to identify the right ones, prepare successful applications, and combine them to maximize the total funding received.
Federal Grants for Canadian Businesses in 2025
An effective approach to securing government support begins with a clear view of where the business is headed over the next one to three years. Mapping planned investments over a 12 to 36 month period allows each anticipated expense to be linked to relevant funding opportunities before the money is spent. This forward-looking view is essential because many programs require applications to be submitted before any commitments are made or invoices paid. Once the investment map is in place, the next step is matching each expense to the best-fit federal, provincial, and regional programs. A single initiative such as automating a production line may qualify for several different types of funding. Strategic stacking, where grants, loans, and tax credits are layered to cover different portions of the same project, can dramatically reduce net costs. Preparing strong applications is equally critical, with detailed project descriptions, credible forecasts, and supporting documentation that align with each program’s priorities. In competitive programs, timing can make the difference between approval and rejection, so submitting on the first day of intake is often a decisive advantage. Finally, because the funding landscape changes quickly, ongoing monitoring is essential. Programs open and close with little notice, budgets are shifted, and new incentives emerge, so a constant watch ensures no opportunity is missed.
The most impactful federal programs for Ontario businesses in 2025 cover a broad range of needs from export market development to research partnerships and advanced manufacturing.
• CanExport SMEs offers up to $50,000 to cover 50 percent of eligible costs for companies seeking to enter new international markets. Funding can offset expenses such as website localization, the creation of marketing materials, market studies, legal or accounting services tied to expansion, participation in international trade shows, and protection of intellectual property abroad. The program is competitive, with only about 36 percent of applications approved in 2024. Businesses must be incorporated in Canada, have between $100,000 and $100 million in annual revenue, and generate no more than 10 percent of their revenue from the target market. Submitting a comprehensive application at the opening of the intake period greatly improves the odds of success.
• CanExport Innovation provides up to $75,000, covering 75 percent of eligible costs for companies developing international R&D partnerships. It supports hiring business development expertise abroad, creating promotional materials to attract foreign partners, attending R&D-focused events, shipping prototypes for demonstration, applying for foreign certifications, and securing international IP rights. There are three submission deadlines each year, but funding for each round can be fully allocated within days, so advance preparation is essential.
• NGen or Next Generation Manufacturing Canada offers contributions of up to $3.2 million covering 40 percent of eligible costs. These funds target collaborative projects that transform manufacturing through advanced technologies. Eligible initiatives include developing and commercializing new processes, scaling up capabilities with digital or material innovation, and making manufacturing more sustainable and efficient. While NGen welcomes large multi-year projects, application windows can be short, so monitoring announcements and having detailed project documentation ready is vital.
• Remission of U.S. Tariffs provides reimbursement of customs duties on goods imported from the United States when those goods cannot be sourced in Canada or from non-U.S. suppliers. Applicants must clearly demonstrate the lack of alternative sourcing or show that exceptional economic circumstances would make paying the tariffs damaging to their operations.
• Low Carbon Economy Fund provides up to $1 million, covering 75 percent of eligible costs for projects that reduce greenhouse gas emissions using proven low-carbon technologies. Projects can include waste diversion systems, biomass retrofits in industrial settings, efficiency upgrades to industrial systems, anaerobic digesters for organic waste, waste heat recovery systems, and HVAC retrofits in commercial or industrial buildings.
• Canadian Food Innovation Network supports multiple funding streams that enhance technology adoption, reduce waste, improve supply chain efficiency, and drive product innovation. Depending on the stream, funding may reach $200,000 to help manufacturers adopt new food technologies, implement circular economy practices, strengthen food safety and traceability, or develop new consumer-facing products and services. Programs are tailored to support both early-stage innovation and the commercialization of new solutions.
• Canada Pavilion Program reduces the cost of participating in major global trade shows by reimbursing expenses such as booth fees, sample shipping, and travel for companies exhibiting at leading food and beverage events worldwide. Priority is given to small and medium-sized exporters and to businesses bringing innovative products to market for the first time.
• Mitacs provides $15,000 per research intern, with placements typically lasting four to six months. It connects companies to academic expertise and supports projects in research and development, innovation problem-solving, and market exploration.
• ICTC WIL Digital offers $7,000 per intern to subsidize wages for post-secondary students in digital economy roles. These internships help businesses access skilled talent while giving students practical, entrepreneurial experience. Both this program and Mitacs allow for multiple interns, making them highly scalable for businesses that can integrate additional short-term talent into their operations.
Together, these federal programs create a versatile toolkit for Ontario businesses in 2025. When approached strategically by mapping investments in advance, preparing applications thoroughly, stacking compatible programs, and monitoring for new openings, they can significantly reduce the cost of growth, innovation, and market expansion while minimizing financial risk.
Ontario-Specific Grants for 2025
Ontario’s provincial grant landscape in 2025 offers a wide range of targeted programs aimed at helping small and medium-sized enterprises grow, innovate, and adapt to evolving market conditions. While federal programs tend to focus on broad national priorities, these provincial initiatives are designed with Ontario’s unique economic strengths and challenges in mind. They address key industries such as manufacturing, automotive supply, and technology, and also support workforce development, regional growth, and large-scale business expansion.
• Advanced Manufacturing and Innovation Competitiveness (AMIC) provides up to $500,000 in combined grant and loan funding, covering 30 percent of eligible project costs. This program is targeted at small and medium-sized manufacturing enterprises in advanced sectors such as aerospace, chemicals, automotive, and other high-value industries. Funding can be used for capital equipment purchases, technology adoption, skills development, consulting services, ongoing operations like maintenance and capital replacement, as well as acquisitions and business buyouts. Projects can span multiple years, and one of the key eligibility requirements is that the investment must lead to job creation. AMIC is particularly relevant for companies that are scaling production capacity, implementing Industry 4.0 solutions, or expanding into new product lines that require specialized equipment or technology.
• Venture for Canada – Hire an Intern offers $7,000 per post-secondary intern, covering up to 70 percent of wages. It is designed to help startups, scale-ups, and small businesses hire students for work placements in digital economy sectors. The funding can be applied across various roles, from software development and marketing to operations and customer success. What makes this program especially attractive is that it can be stacked with other wage subsidies or apprenticeship tax credits, reducing the employer’s out-of-pocket costs even further. Once approved, employers can continue to hire multiple interns under the program without having to go through a full reapplication each time, making it a scalable solution for businesses that frequently bring in short-term talent.
• Ontario Automotive Modernization Program (O-AMP) provides up to $150,000 in funding, covering 50 percent of eligible costs for companies in the automotive supply chain. To qualify, at least 30 percent of a business’s sales must come from the automotive industry. The program is designed to help these companies improve operational efficiency, adopt advanced technologies, and expand product offerings. Eligible projects include implementing lean manufacturing processes, introducing new production cycle management tools, and adopting advanced hardware or software that improves competitiveness. O-AMP is especially valuable for automotive parts suppliers, tool-and-die shops, and engineering firms serving OEMs and Tier 1 suppliers, as it allows them to modernize operations in line with the sector’s shift toward electric and autonomous vehicles.
• Canada-Ontario Job Grant (COJG) offers up to $10,000 per employee to cover 50 to 83 percent of training costs, depending on the size of the employer. Small businesses with fewer than 100 employees are eligible for the highest cost coverage, paying as little as 17 percent of training expenses. The program supports training for both existing employees and new hires, with eligible providers including certified private trainers, colleges, unions, school boards, and even vendors delivering training for specific technologies or systems. One of the major advantages of COJG is its flexibility; companies can choose the training provider and the specific skills to focus on, tailoring programs to their operational needs. For example, a manufacturer implementing new machinery could use COJG to fund the training of its operators, while a tech firm could upskill its developers in a new programming framework.
• NOHFC – Invest North Launch provides up to $200,000, covering 50 percent of eligible costs, for businesses investing in Northern Ontario. The program is designed to encourage business development in the region, supporting activities such as building construction, upgrading leased spaces, purchasing new or used equipment, developing land, investing in IT and communications systems, marketing new products or services, and third-party training costs. Projects must align with regional economic priorities and demonstrate potential for job creation, revenue growth, and improved competitiveness. This program is particularly attractive for entrepreneurs launching new ventures in the north, where capital costs can be higher and market access more challenging.
• NOHFC – Invest North Grow builds on the Launch program by supporting larger-scale expansions with a mix of grants and interest-free loans. Businesses can receive up to 20 percent of eligible costs as a grant, to a maximum of $400,000, combined with an interest-free loan covering up to 30 percent of costs to a maximum of $600,000. In cases where only a loan is required, the program can provide up to 50 percent of costs to a maximum of $1 million. Eligible expenses include capital construction, leasehold improvements, equipment purchases, third-party training, land servicing, and commercialization or technology demonstration costs. This funding mix is particularly useful for companies that want to balance non-repayable contributions with access to larger pools of capital for transformative projects in Northern Ontario.
• FedDev Ontario offers interest-free loans ranging from $125,000 to $10 million, covering up to 50 percent of eligible project costs. This program targets businesses in Southern Ontario, supporting projects that adopt innovative solutions, improve productivity, enter new markets, or undertake large-scale expansions. Eligible costs include salaries and wages, professional fees, equipment purchases or leases, software, training, travel, materials, and certification fees. FedDev is best suited for substantial multi-year projects, as the average project spans three years, and applicants cannot combine this funding with other government programs for the same expenses. Strategic planning is essential, as choosing FedDev may mean foregoing other grants that could otherwise be stacked.
• Southwestern Ontario Development Fund (SODF) provides up to $1.5 million, covering 30 percent of eligible costs, to support business expansion, productivity improvements, market diversification, and job creation in the region. Like its counterpart in Eastern Ontario, the program serves a wide range of industries, with eligible expenses including new facility construction, equipment purchases, workforce training, and other growth-focused investments. Projects can run for up to four years and span up to five fiscal years, allowing businesses to undertake phased growth initiatives without rushing their implementation. The SODF is particularly valuable for mid-sized manufacturers, processors, and technology firms that need both capital and time to execute their expansion strategies.
Ontario’s grant programs in 2025 collectively form a versatile funding ecosystem that complements federal initiatives. While some programs like COJG and Venture for Canada are accessible to a wide range of sectors, others like AMIC and O-AMP are highly targeted to specific industries. Geographic incentives such as NOHFC’s Launch and Grow programs provide significant opportunities for businesses willing to invest in Northern Ontario, while large-scale financing from FedDev Ontario and the Southwestern Ontario Development Fund can help established firms scale rapidly.
Key Tax Credits
Tax credits are an essential part of Ontario’s business funding ecosystem, offering a way to recover costs after a project has begun or even after it has been completed. Unlike grants, which usually require approval before expenses are incurred, tax credits are generally claimed after the fact, as part of a business’s tax return. This makes them more accessible for companies that might not have the time or opportunity to apply for grants in advance but still want to reduce the net cost of their investments. Many Ontario businesses overlook these programs, yet they can deliver substantial financial returns, particularly when combined strategically with other funding sources.
• SR&ED (Scientific Research and Experimental Development) is one of Canada’s most well-known tax credit programs, offering up to a 35 percent refundable investment tax credit for eligible R&D expenses. This includes direct labour costs for employees working on qualifying projects, 80 percent of subcontractor fees, and the cost of materials consumed or transformed during the research process. In some cases, a portion of overhead costs can also be claimed. The program is intended for systematic investigation or search carried out in a field of science or technology, whether through experimental development, applied research, or basic research. While widely used, SR&ED is also known for its strict compliance requirements and the high likelihood of audits, especially for first-time applicants. Businesses must carefully document project objectives, methods, timelines, and results to substantiate their claims. A well-prepared submission will clearly show the technological uncertainties addressed, the advancements sought, and the experimentation or analysis conducted to achieve those advancements. For companies investing heavily in innovation, SR&ED can return six-figure amounts each year, providing valuable cash flow for reinvestment into further R&D activities.
• OMMITC (Ontario Made Manufacturing Investment Tax Credit) provides a 10 percent refundable corporate income tax credit, up to $2 million annually, for eligible manufacturing and processing investments. Qualifying expenditures include the cost of constructing, renovating, or acquiring buildings used for manufacturing or processing in Ontario, as well as purchasing new machinery and equipment for such activities. The credit is intended to encourage Ontario manufacturers to invest in productivity-enhancing assets that strengthen their competitiveness. Unlike some grants, OMMITC can be stacked with other forms of support, including federal and provincial grants for the same project, making it a highly effective tool for reducing net costs. For example, a manufacturer purchasing $5 million worth of new equipment could use a federal manufacturing grant to cover part of the expense and then apply OMMITC to the remaining eligible costs, generating a significant tax refund. While the program is relatively straightforward to claim, businesses must ensure that assets meet the definition of qualifying manufacturing property and are located in Ontario.
• OIDMTC (Ontario Interactive Digital Media Tax Credit) supports the creation of interactive digital media products, offering up to a 40 percent refundable tax credit on eligible Ontario labour and marketing expenditures for non-specified products, and up to 35 percent for specified products developed under fee-for-service arrangements. Qualifying products include video games, educational software, mobile applications, and other interactive digital experiences intended to inform, educate, or entertain. Eligible expenses can include salaries and wages for Ontario-based developers, designers, producers, and testers, as well as certain marketing and distribution costs for non-specified products. One of the notable features of OIDMTC is the inclusion of marketing expenses up to $100,000 per product, which allows companies to offset some of the costs of promoting their work once development is complete. However, the program does not allow stacking with certain other credits, such as SR&ED, for the same expenditures, so careful planning is required to optimize claims. For Ontario’s growing digital media and gaming sector, OIDMTC is a critical source of funding that supports both creative and technical innovation.
• Clean Technology Investment Tax Credit offers a refundable tax credit of up to 30 percent for capital investments in clean technology assets, including equipment used to generate electricity from solar, wind, water, and geothermal sources, as well as stationary electricity storage systems, active solar heating equipment, air-source heat pumps, and geothermal heat pumps. The credit also covers equipment used exclusively for the production of electrical or thermal energy without emitting greenhouse gases. It applies to eligible investments made between March 28, 2023, and December 31, 2034, providing a long runway for planning major sustainability-related projects. This tax credit is particularly valuable for companies looking to reduce their environmental footprint while also lowering operating costs through energy efficiency and renewable generation. For instance, a manufacturer installing a large rooftop solar array could claim the Clean Technology Investment Tax Credit on the full capital cost of the system, reducing the payback period and improving the return on investment. The program can often be combined with other federal or provincial clean energy incentives, further enhancing its value.
These four tax credit programs collectively offer Ontario businesses a flexible set of tools to reduce costs in areas ranging from R&D and manufacturing to digital media and clean technology. Because they are refundable, even companies without significant taxable income can benefit, receiving cash refunds instead of simply reducing future tax liabilities. This makes them accessible to startups and high-growth companies that may be reinvesting heavily in their operations without yet turning large profits.
A key advantage of tax credits over grants is that they can often be claimed retroactively, within certain time limits, allowing businesses to recover costs for projects already underway or recently completed. This flexibility can be particularly valuable when project timelines do not align neatly with grant intake periods. However, maximizing the value of tax credits requires careful documentation and planning. Businesses should track eligible expenses in real time, maintain detailed records of work performed, and understand the interactions between different funding sources to avoid inadvertently reducing the value of their claims.
In practice, the most effective funding strategies integrate tax credits with grants and loans to create a layered approach. For example, a manufacturing company investing in a new production line might secure a grant to cover part of the equipment cost, claim OMMITC on the remaining capital expenses, and apply for SR&ED credits on any experimental development work related to integrating or optimizing the line. A software development studio creating an educational game might claim OIDMTC for eligible labour and marketing costs while also accessing wage subsidies for hiring interns through programs like Venture for Canada. A company transitioning to renewable energy might combine the Clean Technology Investment Tax Credit with provincial clean energy grants and federal financing programs to cover the majority of project costs.
Case Study & Stacking Strategy
A mid-sized food transformation business planning to expand its production line, improve productivity, and increase market reach in 2025 can use a combination of federal and provincial programs to offset a significant portion of its costs. The project may include expenses for studies and analysis, machinery purchases, process optimization, research and development, employee training, and participation in trade shows to promote new products. By mapping these expenses to specific funding sources and strategically stacking programs, the company can create a comprehensive funding strategy that minimizes net costs while accelerating growth.
Studies and analysis can be supported through programs such as FedDev Ontario, which provides interest-free loans for projects that enhance productivity or expand markets, and the Canadian Food Innovation Network, which funds innovation-focused feasibility studies and product development initiatives. If the work involves scientific or technological experimentation, SR&ED tax credits may also apply, allowing the company to recover a portion of labour, subcontractor, and materials costs related to the R&D process.
For machinery purchases, several programs can be leveraged. The Ontario Made Manufacturing Investment Tax Credit (OMMITC) provides a refundable tax credit equal to 10 percent of eligible capital costs for manufacturing equipment or buildings, up to $2 million annually. FedDev Ontario funding can also be applied here, covering up to 50 percent of equipment purchases as part of a larger productivity or expansion project. In certain cases, the NGen program may support advanced manufacturing upgrades if they incorporate innovative technologies or processes.
R&D and innovation components of the project could be eligible for the Canadian Food Innovation Network’s programs, which offer up to $200,000 for projects addressing commercialization barriers or adopting new food manufacturing technologies. CanExport Innovation may also provide up to $75,000 for establishing international research partnerships, especially if the business is looking to adapt products for foreign markets or co-develop technology with overseas collaborators. SR&ED credits can further reduce R&D costs by up to 35 percent for qualifying activities.
Training expenses for employees operating new machinery or adapting to updated processes could be funded through the Canada-Ontario Job Grant (COJG), which covers 50 to 83 percent of third-party training costs up to $10,000 per employee. If the company hires student interns to assist with the expansion or digital process improvements, it could also access wage subsidies from programs such as Venture for Canada or ICTC WIL Digital, which provide up to $7,000 per intern.
Trade show participation to market the company’s new products internationally could be supported through CanExport SMEs, which covers 50 percent of eligible marketing and travel expenses up to $50,000, and the Canada Pavilion Program, which reimburses costs for exhibiting at major food and beverage trade shows around the world. These events not only promote sales but can also help the business connect with new suppliers and partners, expanding its supply chain and distribution channels.
By stacking these programs, the company can maximize its total funding. For example, the cost of purchasing new equipment could be partially funded through FedDev Ontario, with the remaining eligible expenses claimed under OMMITC. R&D work on process optimization could be supported by both Canadian Food Innovation Network funding and SR&ED tax credits, while training costs could be shared between COJG and wage subsidies for interns. Trade show expenses could be split between CanExport SMEs and the Canada Pavilion Program. This layered approach reduces reliance on a single funding source and provides more comprehensive coverage across the project’s different cost categories.
Mapping investments over time is essential for maximizing access to funding. Many grants have intake periods or limited budgets that can run out quickly. By identifying planned expenses over a 12 to 36 month horizon, the company can prepare applications in advance, ensuring it submits them at the earliest possible opportunity when programs open. This proactive approach also allows for better coordination of stacked funding sources, avoiding conflicts between programs that cannot be combined and ensuring that eligible costs are allocated to the most advantageous funding stream.
Early application is particularly important for competitive programs like CanExport SMEs or NGen, where approval rates are higher for early submissions. It also ensures that the business has time to collect all necessary supporting documentation, such as quotes, project plans, and financial statements, which can be time-consuming to compile. By treating funding acquisition as a continuous, integrated part of its growth strategy rather than a last-minute scramble, the company can position itself to secure the maximum available support.
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!
