Canada is a great place for startups. There are many government grants for businesses in Canada, and you can get them if you qualify. This article will discuss the top 10 government grants for startups in Canada.
1. Industrial Research Assistance Program (IRAP)
IRAP is one of the most popular government grants for startups in Canada. This program funds Canadian businesses and entrepreneurs developing new products or processes to help them grow. The IRAP program provides financial assistance, management advice, and technical expertise for companies that need it to be successful.
The Industrial Research Assistance Program was created in 1974 by the Government of Canada as part of its Economic Growth Program. The goal of this program was to help Canadian companies become more competitive on an international level by providing them with funding for research and development projects.
The IRAP program has been very successful since its inception, with more than $4 billion invested into over 4,500 projects since 1974! Learn more.
How much do you get?
The program provides funding to cover up to 80% of project costs and can be used for R&D projects that cost between $50,000 and $500,000. Eligible expenses include labor (employees and subcontractor salaries) and materials and supplies.
Eligibility criteria for this program:
Your business must be a registered Canadian small or medium-sized firm with under 500 employees.
Follow these official instructions to apply.
2. Sustainable Development Technology Canada (SDTC)
Sustainable Development Technology Canada (SDTC) is one of the best government-grant programs available for startups in Canada. It's an excellent resource for startups with projects related to alternative energy resources, clean water, clean air, healthy food systems, and climate change mitigation and adaptation solutions.
One of the areas they focus on is clean technology, which includes renewable energy, cleaner air and water, and waste management.
In addition to providing grants for early-stage startups, the SDTC also offers loans and equity investments as well as technical assistance services such as training seminars and workshops focused on specific topics related to each area listed above (such as how to develop an effective marketing strategy).
These programs aim to help companies become self-sustaining by providing them with the resources they need at different stages of development. Learn more.
How much do you get?
The grant process is competitive, but if accepted into the program, you could receive up to $250,000 in funding for your project.
Eligibility criteria : To be eligible for this grant;
- You must be a registered company in Canada.
- The company's product or service must benefit the Canadian people and utilize an already patented new technology.
3. SR&ED Tax Credit
The SR&ED Tax Credit government grants are aimed at helping startup companies get off the ground. They can be used to fund research, design, and development activities. The grants can help you with your initial development costs, making it easier for you to start your new venture.
The SR&ED tax credit is a refundable tax credit you can claim if you meet specific criteria. You will need to file an income tax return for each year in which you want to claim the credit and have a minimum of $20,000 in eligible expenditures on which you are claiming the credit. Learn more.
Benefits of this grant:
If you qualify for one of these grants, they can work out very well for your business because they will help reduce your tax liability by up to 40%. This means that instead of paying taxes on all taxable income, only part of it will be taxed at a lower rate, and any remaining balance will be returned as a refund.
Eligibility criteria :
Almost all Canadian companies can claim the Scientific Research and Experimental Development (SRED) tax credit. The only requirement for claiming this credit is that you spend money on qualified R&D activities, whether your company is a Canadian-controlled private corporation (CCPC) or a foreign-owned company. The main difference between these two groups is the rate you can claim back on your investment in R&D.
4. CanExport
CAN EXPORT is a Canadian government agency that helps Canadian businesses expand their markets by providing assistance and advice through grants and services. The CAN EXPORT website has a section dedicated to startups, with information about how to apply for grants and links to other resources that can help you get your startup off the ground.
This program is designed specifically for companies that have been incorporated for less than three years, have less than $1 million in sales each year, have fewer than 50 employees, and have yet to succeed in selling their products or service outside Canada. The maximum amount of time you can receive funding from this program is two years. Learn more.
How much do you get?
New Businesses can claim up to 75% of their export expenses, up to a maximum of $50,000. They can also include eligible costs such as research and competitive analysis, product certifications, marketing and packaging supplies translations, and professional development.
Eligibility criteria:
You must be a registered business in Canada, own the intellectual property rights to your invention, and have a 5-year business plan.
5. Proof of Concept Program
Natural Products Canada(NPC) offers the Proof of Concept Program funds projects with the potential to develop commercially viable and innovative natural products or technologies.
To apply for this grant, your company must develop natural products or technologies based on biological organisms. These can be used for food production, agriculture, bioproducts, health, wellness, or water and waste management applications.
Benefits of this program:
Startups may receive up to 40% (capped at $250,000) of the total cost to develop their proof of concept, provided the project is completed within 18 months.
Eligibility criteria:
- You must be an SME, startup, or academic research institute.
- Your product or technology must-have commercial potential.
6. Strategic Innovation Fund (SIF)
The Strategic Innovation Fund (SIF) has five business grant streams. The SIF helps Canadian companies grow in the global market by providing funding to advance innovation and technology while promoting new intellectual property. Learn more.
Benefits of this program:
The Government of Canada provides up to $10 million per company toward creating a new intellectual property or significant technology development.
Eligibility criteria:
The SIF's eligibility criteria request that applicants be large-scale organizations of for-profit, non-profit, or network organizations looking for expansion.
7. CME Technology Assessment Program (TAP)
The CME TAP program gives federal money to manufacturers who want to build new assets or upgrade their technology. The program exists to keep the manufacturing industry competitive and mainly supports waste reduction or increasing productivity projects.
The program will support your organization financially to research new technology and improve manufacturing processes. The benefits of this loan include increased production, quality, innovation, and lower expenses. Learn more.
Benefits of this program:
This program will provide up to $25,000 to cover 100% of the costs associated with technology.
8. Innovative Solutions Canada
Through the Innovative Solutions Canada program, the Government of Canada is partnering with eligible Canadian small businesses, facilitating the early development, testing, and validation of prototypes and preparing a pathway to commercialization.
The Government of Canada is offering to fund new ideas that could solve a challenge. If your idea is selected, you could get funding to develop a proof of feasibility. If the Government likes your evidence of feasibility, they could fund you to create a prototype. If the developed innovation solves their challenge, it could be sold to them. Learn more.
How much do you get?
Selected applicants are given up to $150,000 to develop a working prototype and may later qualify for up to $1 million to take the product to market.
Follow this official page to Learn the eligibility criteria
9. New Brunswick: Enabling Agricultural Research and Innovation
The Agricultural Knowledge Management Program (AKMP) is a program of the New Brunswick Agricultural Research and Development Foundation (NBRDF), funded by a Canadian government grant. The program aims to provide tools and support for agricultural researchers in New Brunswick, Canada. The program seeks to develop partnerships between industry and academia to improve the quality of research in this area.
The government will provide funding assistance for approved activities intended to encourage the growth, profitability, sustainability, and self-sufficiency of New Brunswick's agriculture, agri-food,agri-product,agri-science and agri-processing sectors through innovative research and development projects; on-farm demonstration trials; pre-commercialization development activities; on-farm innovation; and adoption of new technologies.Learn more.
Benefits of the program
The program provides up to $65,000 over a 1-5 year period to help businesses in the agricultural industry in the province. The program allows eligible businesses to spend money on salary-related costs and the cost of machinery and products that will aid the agricultural sector in the region.
Eligibility criteria for this program:
Applicants must be
- Agriculture producers
- Agriculture producer associations
- Indigenous people or organizations
- Academic or research institutions Agri-businesses
10. Nova Scotia: Innovation Rebate program
Nova Scotia is a province in Canada, and the innovation rebate program is a government-funded incentive for businesses to invest in new technology.The rebate can offset the cost of research and development, marketing and branding efforts, or employee training. It can also cover costs associated with acquiring software and hardware to develop new products or services.
The rebate program was created to encourage Nova Scotian companies to invest in research and development to help them grow their businesses. The rebate program provides up to $500,000 annually for eligible projects.
How to Apply Applicants must submit a completed application form to a Regional Business Development Advisor.
There you have it, ten government funding programs. Remember, this is just a sample of the range and availability of Canadian grants and subsidies. There are many resources to help you determine what funding is available to you. If you're a startup, don't give up on your idea because you think you can't get funding-instead, take some time and research the options. You might find more support for your vision than you thought.
