If you plan to grow your business, you might need funding. For most people, funding can play a significant role in a company’s success. But you don’t need to turn to traditional or alternative lenders first. You can instead try to secure business grants in Canada in 2025 or beyond alongside government incentives.
In today’s blog, Bizfund shares government incentives and business grants in Canada for 2025 that you can apply for. We share details on various federal and provincial grants and incentives, along with eligibility and application tips. We’ve also gone so far as to share insightful information on combining loans and grants.
Federal Grants
When it comes to entrepreneurship support, federal grants and incentives offer the highest potential. Below are a few of the best options to consider if you need small business funding in 2025 and beyond.
NRC Industrial Research Assistance Program (IRAP)
When it comes to business grants in Canada in 2025, the NRC Industrial Research Assistance Program (IRAP) is ideal for technology-driven businesses or those looking to develop something new. This valuable program supports research and development projects. It offers non-repayable contributions that can help you reduce technical and financial risk.
If you manage to secure funding, you can use it to develop prototypes, test ideas, or advance early-stage innovation. In addition, you may like that the IRAP offers advisory support. This support can help you shape your project and plan your next steps for your business.
CanExport Innovation
Some businesses want to expand into new markets with global partners. Many find that with CanExport Innovation, they can open professional doors that might otherwise have remained shut. If your company is one of them, you might want to look into CanExport Innovation for funding.
CanExport Innovation can help you reduce early risk. It’s for Canadian businesses that want to build commercialization or research partnerships with international organizations. With this grant, you can cover a portion of eligible costs for partnership development, travel, and collaborative work.
Canada Summer Jobs and Youth Employment Programs
Currently, a huge federal focus is on hiring support. Although technically not part of business grants in Canada in 2025, Canada Summer Jobs and Youth Employment Programs offer wage subsidies to employers who hire youth during the summer.
These incentives could let you increase capacity without taking on full payroll costs. This could be hugely beneficial, as you’ll receive wage subsidies without additional financial risk.
Additionally, some of these federal incentives support youth employment programs that offset the costs of hiring recent graduates for innovation projects. If you want to build talent within your company and need additional help without incurring additional financial risk, these incentives are worth considering.
Provincial Programs
Provincial programs build on federal programs to support industry priorities and local economies. However, for businesses, provincial grants and incentives offer more targeted options and can be more accessible if you operate a small or mid-sized Canadian business.
Let’s have a look below at a few of the most popular options for 2025 and beyond:
Canada Ontario Job Grant
Any Ontario business looking into training new or existing staff should consider the Canada Ontario Job Grant. With this grant, you can introduce new technology and prepare staff for expanded roles.
The grant helps you cover a significant portion of third-party training costs. In addition, you get to choose the training provider, and then the program will share expenses with you. It’s a great way to upskill your team, meet industry demands, and strengthen operations without stretching your budget too thin.
Ontario Automotive Modernization Program
Another Ontario provincial grant is the Ontario Automotive Modernization Program. Only businesses in the automotive industry can apply for this grant. Usually, people use this grant to fund productivity improvements and invest in technology. Since grants can stretch into the six figures for eligible modernization projects, it can be considerably beneficial.
We recommend this grant to those who want to meet higher production standards or sharpen their competitive edge in the automotive industry. However, it’s worth noting that applications for 2025 closed in July 2025, so keep an eye out for the 2026 intake period.
Northern Ontario Heritage Fund Corporation
Businesses in northern Ontario seeking entrepreneurship support or small business funding can consider the Northern Ontario Heritage Fund Corporation initiative. This fund operates several Invest North programs offering grants.
These incentives support job creation, tourism, innovation, community development, and regional diversification. These grants can be used to grow, modernize, or start a business. However, you should know that the structure of these grants can vary, making eligibility a challenge.
Innovate BC Programs
Innovate BC, otherwise known as Innovate British Columbia, continues to support early-stage commercialization and technology development. With this in mind, it should come as no surprise that there is a range of programs offering funding.
For example, there is the BC Fast Pilot program and the Innovate BC Go To Market Microgrant. These grants can help your business test products in real-world environments to prepare for early sales. Yet, the caveat is that most Innovate BC funding is geared toward tech-focused businesses.
Eligibility & Application Tips
When you’re looking into government incentives and business grants in Canada in 2025, you need to keep eligibility at the forefront of your mind. You also need to keep a few application tips in mind to secure the funding you need.
Program Eligibility
You need to know that eligibility can vary across federal and provincial grants and incentives. Each one will have its own requirements, although these can overlap at times.
In our experience, most programs want to see that your business is financially stable, established, and ready to complete the project you’re proposing. In addition, programs look for clear goals, realistic outcomes, and a direct connection between your project and what the program supports.
Program Application Tips
Once you know that you meet the eligibility requirements for the government grant or incentive you want to apply for, you can follow the tips below:
- Prepare Documents Early: Most programs will ask for incorporation records, financial statements, payroll details, and proof of operations. Having this on hand allows you to avoid the stress of scrambling to gather the documents you need when the time comes.
- Compile Project Costs: You need to gather project quotes, proposals, or cost estimates so reviewers can see that your numbers are grounded in real planning.
- Consider Timelines: It’s important to keep track of program timelines and open dates. This will help you submit early rather than rush just before a deadline.
You should also use simple language and clearly outline how your project aligns with the program’s goals. This will help the government program easily determine if your business is a fit.
Combining Loans and Grants
Many Canadian businesses have mastered the art of using grants and loans simultaneously to fund their growth. This combination works because grants help you reduce project costs while loans give you flexibility, and together they help you balance cash flow.
We recommend starting with grants that support research, planning, training, or early-stage development. Once you secure a grant, pursue a loan or another form of financing, such as a merchant cash advance, to finance technology, equipment, or expansion. Doing things this way will help you spread costs and manage risk better.
Additionally, securing a grant before financing can benefit your business by helping lenders view it more positively. Obtaining a grant signals that your project has been reviewed and approved by external evaluators. With this being the case, you have a better chance at favourable loan terms.
Key Takeaways
As you can see, there are many different federal and provincial grants and incentives available. However, if you find that you’re not eligible for many business grants in Canada for 2025 or they are not quite what you need, it might be best to consider alternative funding.
At Bizfund, we offer merchant cash advances to fund various business needs. We provide fast approvals and don’t rely heavily on traditional lenders’ credit criteria. You might also find it beneficial to secure a grant or take advantage of an incentive while accessing a merchant cash advance. If you want to learn more, you can contact our team here.
