facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
Government Grants and Loans for Small Businesses in Canada Thumbnail

Government Grants and Loans for Small Businesses in Canada

Canada offers a range of government grants and loans to support small businesses. These programs can help businesses start, grow, and innovate.

Here are some of Canada’s top government grants and loans for small businesses!

Canada Small Business Financing Program (CSBFP)

The CSBFP assists small businesses in obtaining loans by sharing the risk with lenders. Eligible businesses can access up to $1 million in financing, with $500,000 available for equipment, leasehold improvements, and working capital. The program is available through most financial institutions.1

CanExport SMEs

This program supports SMEs looking to expand into international markets. Eligible businesses can receive up to $50,000 to cover up to 50 percent of export marketing costs, such as trade shows and market research.2

Canada Job Grant (CJG)

The CJG provides funding to employers to train new or existing employees. Businesses can receive up to $10,000 per trainee, covering a significant portion of training costs. The program is delivered in partnership with provinces and territories, so that specifics may vary by region.3

Business Development Bank of Canada (BDC) Small Business Loan

The BDC Small Business Loan offers up to $100,000 in financing with flexible terms and no application fees.4 This loan can be used for various purposes, including purchasing equipment, covering operational expenses, or financing marketing campaigns. Additionally, BDC provides interest-only payments for the first six months, allowing businesses to focus on growth.

Scientific Research and Experimental Development (SR&ED) Tax Incentive Program

The SR&ED program provides tax incentives to businesses conducting research and development in Canada.5 Eligible businesses can receive tax credits or refunds for a portion of their R&D expenditures.

Industrial Research Assistance Program (IRAP)

Run by the National Research Council, IRAP provides grants to small businesses developing innovative tech or products.6 Unlike SR&ED (which gives tax credits after the fact), IRAP provides upfront funding.

The program’s strategic objectives include helping Canadian businesses develop and commercialize technologies and collaborate with regional and national organizations on initiatives supporting the development of these technologies.

Regional Development Agency Programs

In addition to these federal programs, each region in Canada has a development agency that offers funding based on local priorities, such as tourism in the Atlantic provinces or tech in British Columbia.

FedDev Ontario, PrairiesCan, and PacificCan are examples of regional development agency programs. These programs change frequently and include loans, grants, or wage subsidies.

Navigating government funding options can be complex, but these programs offer valuable support to Canadian small businesses. Want to explore even more government programs tailored to your business needs? Visit the Business Benefits Finder via the Government of Canada.7 This tool helps identify funding, tax credits, and other support programs based on your business profile.

LET'S TALK

  1. https://ised-isde.canada.ca/site/canada-small-business-financing-program/en/find-loan-your-small-business/canada-small-business-financing-program-guidelines
  2. https://www.tradecommissioner.gc.ca/funding-financement/canexport/sme-pme/applicant-guide-requerant.aspx?lang=eng
  3. https://funding.ryan.com/government-funding/human-resources-and-training/cjg/
  4. https://www.bdc.ca/en/financing/small-business-loan
  5. https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program.html
  6. https://nrc.canada.ca/en/support-technology-innovation/about-nrc-industrial-research-assistance-program
  7. https://innovation.ised-isde.canada.ca/innovation/s/?language=en_CA

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Ivy Pierson, CEP, MBA Investment Advisor Representative Securities and advisory services offered through Cetera Advisors LLC (doing insurance business in CA as CFGA Insurance Agency LLC), member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity. Pierson Wealth Management is located at 28368 Constellation Rd., Ste. 396, Santa Clarita, CA 91355. CA Insurance Lic#0C92500. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful