Introduction:
For small businesses in Ontario, securing small business grants and loans can be a significant hurdle to growth and sustainability. Fortunately, the provincial and federal governments offer a variety of funding for businesses in Ontario designed to support small businesses in their early stages, promote innovation, and stimulate job creation.
This blog post provides a comprehensive overview of the top government funding for businesses in Ontario available to small businesses in and how you can apply for them.
1. Canada Small Business Financing Program (CSBFP)
The Canada Small Business Financing Program (CSBFP) is a popular small business grants and loans program designed to help small businesses access financing for the purchase of assets such as equipment, property, and leasehold improvements. The program is available to businesses with annual gross revenues of $10 million or less.
Key Details:
- Provides loans of up to $1 million to cover costs related to business expansion.
- Up to $350,000 of the loan can be used for leasehold improvements or equipment purchases.
- The federal government shares the risk with the lender, making it easier for small businesses to secure loans.
Eligibility Criteria:
- Your business must be a for-profit enterprise located in Canada.
- Annual gross revenues must not exceed $10 million.
- Loans cannot be used for certain industries like agriculture, not-for-profits, and religious organizations.
How to Apply: Applications for the CSBFP are made through financial institutions such as banks, credit unions, and trust companies. You will need to present a solid business plan and demonstrate your ability to repay the loan.
2. Ontario Innovation Tax Credit (OITC)
The Ontario Innovation Tax Credit (OITC) is a refundable tax credit for small businesses conducting scientific research and experimental development (SR&ED) in Ontario. This program encourages innovation by providing businesses with up to 8% of eligible SR&ED expenditures.
Key Details:
- The credit is available to Canadian-controlled private corporations (CCPCs).
- Eligible businesses can claim up to $3 million in qualifying research expenditures.
- The program supports innovation in sectors such as technology, healthcare, manufacturing, and environmental science.
Eligibility Criteria:
- Must be a small business registered in Ontario and conducting SR&ED activities within the province.
- Canadian-controlled private corporations (CCPCs) with taxable income of less than $500,000 can apply.
How to Apply: You can claim the OITC by filing your corporate tax return and completing the applicable forms for the SR&ED program.
3. Canada Job Grant
The Canada Job Grant is a government program that helps businesses offset the costs of training new and existing employees. The grant covers up to two-thirds of the cost of employee training, with a maximum of $10,000 per employee.
Key Details:
- Provides funding for businesses to train employees to acquire new skills or improve existing ones.
- The grant covers up to two-thirds of the total training cost, with the employer contributing the remaining third.
- The training must be provided by an eligible third-party trainer, such as a college, university, or training institution.
Eligibility Criteria:
- Available to small, medium, and large businesses in Ontario.
- The employer must contribute to the training costs.
How to Apply: Applications are submitted through the Government of Canada’s Job Grant portal. Be prepared to outline the training program, the expected outcomes, and the training provider’s credentials.
4. Ontario Agri-Food Innovation Alliance
For businesses in Ontario’s agriculture and food sector, the Ontario Agri-Food Innovation Alliance provides funding to support innovative projects that improve food production, processing, and safety. This grant program is designed to encourage collaboration between academia and industry to solve key challenges facing the agri-food sector.
Key Details:
- Supports research projects that contribute to the economic and environmental sustainability of the agri-food industry.
- Funding is available for projects that address key issues like food safety, crop protection, and sustainable farming practices.
Eligibility Criteria:
- Open to businesses, research institutions, and not-for-profit organizations in Ontario’s agri-food sector.
- Projects must involve collaboration with an academic institution.
How to Apply: Applications are submitted through the Ontario Ministry of Agriculture, Food, and Rural Affairs (OMAFRA) and must include detailed project plans, budgets, and research goals.
5. Northern Ontario Heritage Fund Corporation (NOHFC)
The Northern Ontario Heritage Fund Corporation (NOHFC) offers small business grants and loans to businesses operating in Northern Ontario. The NOHFC program is designed to foster economic development, job creation, and innovation in Northern Ontario by supporting businesses in various industries, including tourism, manufacturing, and mining.
Key Details:
- Provides funds to help businesses expand, innovate, and create jobs in Northern Ontario.
- Offers small business grants and loans for startups, business expansion, and workforce development.
- The NOHFC covers up to 50% of project costs, with a maximum grant of $1 million.
Eligibility Criteria:
- Your business must be located in Northern Ontario.
- Projects must contribute to economic development in the region.
How to Apply: Applications can be submitted online through the NOHFC website. Be prepared to provide detailed financial projections and demonstrate how your project will benefit the local economy.
- “In 2023, the Government of Canada allocated over $3 billion in grants to support small businesses, with a significant portion directed towards innovation and job creation.”
- Source: Government of Canada, 2024. Available at: Government of Canada
Conclusion:
Securing government grants can provide your small business in Ontario with the financial support needed to grow, innovate, and thrive. Whether you’re looking for small business grants and loans for research and development, employee training, or business expansion, Ontario offers a wide range of grant programs to help small businesses succeed. By understanding the available small business grants and loans and their eligibility criteria, you can take advantage of these opportunities to move your business forward.
Need help navigating through funding for Businesses in Ontario for your small business? Contact Futura Business Services below for a business strategy session for expert guidance on securing funding and growing your business in Ontario.
