Funding Opportunities to Help Your Ontario Business Start, Grow, and Thrive
Thinking about starting a business in Ontario? You’ll be happy to know there are grants out there designed to help you succeed. Unlike loans, grants don’t need to be paid back, which makes them a pretty exciting option for entrepreneurs looking to fund new ideas, hire staff, upgrade equipment, or just get through those early growth stages.
Knowing where to look and how to qualify can be challenging, but, Ontario offers a range of small business grants through both provincial programs and local initiatives, each with their own criteria and focus. It might take a bit of research and effort to apply, but the payoff can be well worth it. Let’s take a look at the most popular grant options in Ontario, how they work, and tips for giving your application the best shot at success and also consider the alternative to grants.
What Are Small Business Grants and How Do They Work?
Small business grants are basically free money offered by the government or other organizations to help entrepreneurs start, grow, or improve their businesses. Unlike loans, you don’t have to pay grants back, there’s no interest, no monthly payments, and no debt hanging over your head. Sounds great, right?
The catch is that grants are usually competitive and come with specific requirements. Some might be for businesses in certain industries, while others support things like hiring youth, going green, or innovating a product or service. If you meet the criteria and submit a strong application, you could land funding that gives your business a real boost, without cutting into your profits.
Grants often require you to outline how you’ll use the money, and they may ask for progress updates. It’s definitely worth the effort if you qualify, especially for small businesses that could use extra help to get ahead without the financial strain.
Top Grant Programs Available for Ontario Entrepreneurs
Ontario offers a variety of grant programs designed to support small business owners across different industries and stages of growth.
Starter Company Plus Program
One popular option is the Starter Company Plus Program, which offers both funding and hands-on mentorship to new entrepreneurs who are ready to launch or grow their businesses in Ontario. What makes this program especially valuable is that it also connects you with expert guidance, business training, and one-on-one coaching to help you build a strong foundation. Eligible applicants can receive up to $5,000 in grant funding, which can go a long way in those early stages.
Ontario Centres Of Innovation
The Ontario Centres of Innovation (OCI) is another great option for entrepreneurs, especially those working on innovative or tech-driven ideas. This program focuses on helping startups and growing businesses develop new products, scale up, and bring cutting-edge solutions to market. OCI offers funding, mentorship, and access to research and development resources, so it’s a strong choice if you’re looking to turn a bold idea into a real-world success.
IRAP (Industrial Research Assistance Program)
If your business is focused on innovation and research, the Industrial Research Assistance Program (IRAP) is definitely worth a look. Run by the National Research Council of Canada, IRAP helps small and medium-sized businesses bring new technologies to life. It offers financial support for R&D projects, along with expert advice from experienced industrial technology advisors.
Canada-Ontario Job Grant
The Canada-Ontario Job Grant (COJG) is a valuable resource for employers aiming to enhance their workforce’s skills. This is a program that offers financial support to businesses for third-party training, covering up to $10,000 per trainee. Small employers training and hiring unemployed individuals may qualify for 100% funding, up to $15,000 per trainee. The training must be short-term and provided by an eligible third-party trainer.
There are also niche grants available for women entrepreneurs, Indigenous-owned businesses, and those focused on green or sustainable initiatives. Your goal should be to match your business goals with the right funding opportunity. It might take a little digging, but grants can be a great way to ease financial pressure and invest in your company’s growth.
Canada Digital Adoption Program (CDAP)
Another standout grant opportunity for Ontario businesses is the Canada Digital Adoption Program (CDAP). This federal initiative, delivered in partnership with organizations like the Ontario Chamber of Commerce, is all about helping small businesses boost their digital presence. If you’re looking to take your business online, beef up your e-commerce game, or streamline your day-to-day with new tech, CDAP provides up to $2,400 in micro-grant funding to support those goals.
To qualify, your business should be for-profit and either registered or incorporated in Canada. You’ll need to be consumer-facing—so businesses serving the public are the target here. Eligibility also requires that you have at least one employee other than yourself, or that your business pulled in at least $30,000 in revenue over the past year. It’s designed to make digital upgrades accessible for small businesses ready to take that next step.
Summer Company Grant
If you’re a student in Ontario, there’s a fantastic program just for you: the Summer Company Grant. Designed specifically for young aspiring entrepreneurs between the ages of 15 and 29, this grant offers up to $3,000 to help you start and run your very own small business during the summer months.
Whether you’ve got a business idea already or you’re just getting started, the Summer Company Grant can help turn your ambition into hands-on experience. Along with the funding, you’ll also get access to business training and mentorship—so you’ll be supported every step of the way as you learn what it takes to run a business. This is a great opportunity if you’re a student ready to dive into entrepreneurship, build new skills, and maybe even pave the way for your own future company.
Eastern Ontario Development Fund
If you’re running a business in eastern Ontario and thinking about expanding or pushing into new markets, the Eastern Ontario Development Fund (EODF) is definitely worth checking out. This provincial program is geared toward helping established businesses, municipalities, and not-for-profits invest in projects that create jobs and drive regional growth.
To be in the running, your business needs to have at least three years under its belt, complete with financial statements. You’ll also need a minimum of 10 employees—or just five, if you’re based in a rural area. Plus, you’ll have to show you’re planning to add at least five new positions as part of your proposed project.
The EODF is all about helping organizations level up, whether that means boosting productivity, exploring new markets, or making strategic investments. It’s a smart option for businesses looking to scale up—and one more tool in Ontario’s robust small business support toolkit.
DMS Ontario Grant
Another fantastic opportunity for Ontario’s small business owners—especially those with physical storefronts—is the DMS Ontario Grant, available through the Ontario Government and Digital Main Street.
This grant is designed to help traditional, brick-and-mortar shops make the leap into the digital world. If you qualify, you’ll have access to a digital assessment and free online training to help you understand where your business can benefit from going digital. On top of that, successful applicants can receive up to $2,500 to put their digital transformation plan into action, whether that means building a website, setting up e-commerce, or boosting your online presence. For small businesses looking to stay competitive in today’s market, this grant can provide a solid head start.
FedDev Ontario: Funding for Southern Ontario Entrepreneurs
If your business is based in southern Ontario and you’re aiming to grow, expand, or innovate, the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is a funding source worth checking out. This program is designed to help established businesses—and co-operatives, including those owned by Indigenous entrepreneurs—take on new projects that boost productivity, bring new products to market, or scale operations.
Here’s what you need to know:
- Funding Amount: Projects start at $125,000, and the amount is repayable but interest-free (so it won’t add to your debt load like a traditional loan).
- Eligible Applicants: For-profit businesses operating in southern Ontario, with at least five full-time employees. You’ll also need to show a solid track record by being incorporated and registered to do business in Canada for at least three years.
This funding aims to support activities like developing or commercializing new products, expanding into new markets, and upping your business’s overall competitiveness. If your company is a bit further along in its journey and you’re looking for resources to take things to the next level, FedDev Ontario could offer the support you’re after.
Digital Modernization and Adoption Plan
Looking to boost your business’s online presence or streamline operations with better technology? The Ontario-based program helps small and mid-sized businesses take their operations digital by providing up to $15,000 in funding to work with a digital adoption consultant. The goal is to create a strategy that’s customized to your business—to save you time, money, and headaches as you grow.
If your business is for-profit, located in Ontario, and has between one and 499 employees, you may be eligible to apply. This program is open to a variety of industries, so whether you’re running a storefront, offering services, or building the next big thing in tech, there’s a good chance you can access support to modernize how you operate.
Retail Modernization Project Grant
Looking to bring your shop or restaurant into the digital age? The Retail Modernization Project Grant is geared towards helping Ontario businesses update their operations with new technology, equipment, or software. This grant offers up to $5,000 to cover the costs of modernizing your customer experience or backend systems.
To qualify, you’ll need to meet a few requirements:
- Be an Ontario-based retailer, accommodation provider, or food service business
- Operate a direct-to-consumer business that has a physical storefront
- Have been in business for at least one year
- Earn at least $100,000 in annual revenue
- Employ between one and 50 people
If your business fits the bill, this grant can help you upgrade your tech and keep pace with changing customer expectations.
Who’s Eligible?
Eligibility really depends on the specific program, but don’t let that intimidate you! Many grants are designed to support a wide range of entrepreneurs, such as brand-new startups to more established small businesses looking to grow. Some programs may focus on certain industries like tech, manufacturing, or green energy, while others might prioritize businesses owned by youth, women, newcomers, or underrepresented groups.
General Requirements
- Canadian Residency or Incorporation
You must be a Canadian citizen, permanent resident, or a business registered/incorporated in Canada.
- Business Registration
Your business should be legally registered (federally or provincially).
- Clear Business Plan or Proposal
A solid business plan outlining your goals, budget, and how the grant funds will be used is usually required.
- Eligible Industry or Sector
Many grants are targeted toward specific industries (e.g., tech, green energy, agriculture).
- Use of Funds
You must specify how the funds will be used, such as hiring, equipment, R&D, or training.
- Proof of Financial Need or Contribution
Some programs require matching funds or proof you can support part of the project.
- Good Standing
Your business must be in good legal and financial standing (no unpaid taxes or outstanding legal issues).
Take time to read through the details of each program carefully. If you’re not sure whether you qualify, many organizations offer support or guidance to help you through the process. You might be more eligible than you think!
Just How Big Is the Small Business Scene?
You might be surprised to learn just how much of Canada’s business world is powered by small businesses. In fact, a whopping 98% of all businesses across the country are considered “small”—a testament to the entrepreneurial spirit north of the 49th. Here in Ontario, small businesses are especially prominent, with over 400,000 calling the province home. That’s a huge slice of the action and means plenty of company if you’re thinking of joining their ranks!
Where to Find and Apply for Grants in Ontario
Finding and applying for small business grants in Ontario might sound overwhelming at first, but once you know where to look, it becomes much more manageable. A great starting point is the Government of Ontario’s website, which regularly lists available grant programs by sector, region, or business type. You can also explore federal programs through sites like Innovation Canada or Canada Business Network.
Local organizations, such as regional economic development offices, chambers of commerce, and small business enterprise centres, are also excellent resources. They often have insider knowledge of community-specific grants and can even help with your application. Once you’ve found a grant you’re interested in, make sure to read the eligibility criteria carefully and gather all the required documents ahead of time.
Small business grants in Ontario can be a game-changer if you know where to look and how to apply. What you should focus on is finding the right fit for your goals and making sure your application stands out. It might take time and a bit of paperwork, but the payoff can be huge. Every dollar counts when you’re growing a business, and a well-earned grant could be the stepping stone to your next big breakthrough. Keep pushing forward though, you’ve got options, and Ontario is full of resources ready to help.
