What grants are available for starting a small business in Canada?

Startup grants in Canada include the Futurpreneur program, Canada Job Grant, and various provincial and municipal initiatives. These often support young entrepreneurs, Indigenous founders, or specific industries like tech or green energy.

How do I qualify for government grants?

You typically need a solid business plan, proof of Canadian residency, and eligibility under a program’s specific focus—like youth, regional development, or innovation. Most grants are competitive and require detailed applications.

Where can I apply for small business funding?

You can apply through federal sites like Innovation Canada’s Business Benefits Finder, or provincial portals like Ontario’s ONe-Key, Alberta Innovates, or B.C. Business Grants. Many are online and sector-specific.

Small Business Grants: Where to Find Free Money to Start Your Dream

Small Business Love
May 14
2 min read

Updated: Jun 13

How to Start a Business in Canada and Get Free Grant Funding

Woman in glasses smiling at phone while using laptop in a creative workspace with brushes and colorful supplies, creating a focused mood. — There are many resources available to help you find grants to start your small business.

What Are Small Business Grants and How Do They Work?

Starting a business requires capital, and while loans and personal savings are common funding options, small business grants provide free money without repayment obligations. However, finding and securing grants requires research and effort. This guide will help you discover the best grants available in Canada and how to apply successfully.

Understanding Small Business Grants

Business grants are funds awarded by governments, private organizations, and nonprofits to support entrepreneurs. Unlike loans, grants do not need to be repaid, but they often come with strict eligibility requirements and competitive applications.

Types of Small Business Grants in Canada

1. Government Grants

Federal Grants: Offered by agencies like the Canada Small Business Financing Program (CSBFP) and the Business Development Bank of Canada (BDC).
- Canada Small Business Financing Program (CSBFP)
- Business Development Bank of Canada (BDC)
Provincial and Municipal Grants: Each province and city may have its own grant programs, such as:
- Ontario Small Business Grants
- Alberta Innovates Grants
- British Columbia’s Small Business Grants

2. Corporate and Private Grants

Many large companies offer grants to small businesses in Canada, including:
- The Futurpreneur Canada Startup Program
- The TELUS Innovation Awards
- The Canadian Women’s Foundation Grant

3. Industry-Specific Grants

Some grants are available for specific industries, such as technology, healthcare, and agriculture. Examples include:
- The AgriInnovate Program for agricultural businesses
- The Industrial Research Assistance Program (IRAP) for tech startups

How to Find Small Business Grants in Canada

Finding the right grant requires research. Here are some key resources:

Government of Canada’s Business Grants and Financing Page – A centralized database of available grants.
Canada Business Network – Provides links to federal and provincial funding options.
Futurpreneur Canada – Offers funding and mentorship opportunities for young entrepreneurs.
Local Economic Development Agencies – Many provinces have small business development centers that provide grant information.

Tips for Writing a Winning Grant Proposal

Applying for grants can be competitive, so follow these tips:

Read the Requirements Carefully: Ensure you meet all eligibility criteria before applying.
Clearly Define Your Business Goals: Explain how the grant will help your business grow.
Provide a Detailed Budget: Show exactly how you will use the funds.
Write a Compelling Story: Many grants favor businesses with a strong mission and community impact.
Follow Submission Guidelines: Missing a deadline or submitting incomplete information can disqualify your application.

Alternatives to Grants

If you don’t qualify for a grant, consider other funding options:

Small Business Loans – Offered by banks, credit unions, and organizations like BDC.
Crowdfunding – Platforms like Kickstarter and Indiegogo allow you to raise money from supporters.
Angel Investors & Venture Capitalists – Ideal for high-growth startups looking for investors.

Two people smiling as one man in a suit shakes their hands across a table, with documents and pens. Office setting with blinds in background.

Final Thoughts

While securing a small business grant can be challenging, it’s a fantastic way to fund your business without debt. By researching available grants, carefully preparing applications, and exploring alternative funding sources, you can increase your chances of success.