Ontario is home to more than 400,000 small and medium-sized enterprises (SMEs), representing over 98% of all businesses in the province. These companies are the backbone of the economy, driving job creation and innovation. Yet, many SMEs face challenges accessing capital.
Government and industry grants help bridge this gap, strengthening regional economic development. Whether you’re looking to expand operations, adopt new technology, or hire skilled employees, there are a variety of Ontario small business grants available in 2025.
This guide highlights the best grants for small businesses in Ontario that are currently active or scheduled to open soon. Each program is designed to support growth, innovation, and competitiveness in different sectors of the economy.
Grants for Technology Adoption and Digital Transformation
Adopting new technologies is critical for competitiveness, and Ontario supports it with significant funding. Now that the federal CDAP program has ended, the Digitalization Competence Centre (DCC), run by the Ontario Centre of Innovation (OCI), is the primary source of grants and consulting to help Ontario SMEs plan and implement digital upgrades. Key DCC programs include:
DMAP Planning Grant: Through this program, companies work with an approved consultant to assess their current operations and develop a tailored roadmap for adopting new technologies. The grant covers up to 50% of eligible project costs, with a maximum contribution of $15,000, making it a practical way for businesses to identify gaps, prioritize investments, and build a clear modernization strategy. By completing a DMAP plan, businesses also position themselves for additional funding opportunities, such as the Technology Demonstration Grant (see below).
Technology Demonstration Grant: Available to companies that have already completed a DMAP project, this grant supports the purchase and implementation of new technologies identified in their roadmap. It provides up to 50% of eligible project costs, with a maximum contribution of $150,000, making it a significant boost for businesses ready to modernize operations and scale. Beyond funding, the program also encourages the commercialization of Ontario-made digital solutions, helping local firms showcase innovation while driving growth and competitiveness.
Retail Modernization Grant: Provides Ontario retailers with matched funding of up to $5,000 to help them adopt digital tools that improve efficiency and customer experience. Eligible businesses can use the grant to invest in technologies such as e‑commerce platforms, inventory management systems, point‑of‑sale upgrades, or cybersecurity solutions.
Grants for Business Growth and Expansion
Business growth funding programs are designed to help Ontario companies scale beyond their current capacity, enter new markets, and strengthen long‑term competitiveness. Unlike early‑stage innovation or R&D supports, these initiatives focus on accelerating commercialization, expanding production, and building the infrastructure needed to compete nationally and globally. Whether through strategic financing, export development, or large‑scale investment funds, they provide the capital and confidence businesses need to take the next big step in their growth journey.
Canada Growth Fund (CGF) – A $15 billion independent investment fund, created to accelerate business growth and support Canada’s transition to a low‑carbon economy. Rather than operating as a traditional grant program, the CGF provides large‑scale financing through equity, loans, and other de‑risking mechanisms to help companies scale transformative projects in areas such as clean energy, critical minerals, advanced manufacturing, and emerging technologies. With a mandate to attract private capital and back commercially viable, high‑impact initiatives, the fund is designed to unlock billions in investment that might not otherwise move forward.
CanExport SMEs – A federal initiative that helps Canadian small and medium‑sized enterprises expand into new international markets. It provides funding to cover up to 50% of eligible export development costs, with contributions ranging from $10,000 to $50,000 per project. Eligible expenses include participation in trade shows and missions, market research, translation and adaptation of marketing materials, and applying for intellectual property protection abroad. By reducing the financial risk of entering unfamiliar markets, CanExport SMEs enables businesses to diversify their customer base, build global partnerships, and strengthen long‑term growth opportunities.
Southwestern Ontario Development Fund – Provides financial support to businesses, municipalities, and not‑for‑profit organizations undertaking projects that drive economic growth in southwestern Ontario. The program helps companies invest in new equipment, facility expansions, innovation, and workforce development to improve productivity, create sustainable jobs, and open new markets. Funding is offered through a combination of grants and interest‑free loans, typically covering up to 15% of eligible project costs, with contributions that can reach several million dollars depending on project size and impact. Businesses located in Eastern Ontario can access the Eastern Ontario Development Fund.
Federal Economic Development Agency for Southern Ontario (FedDev Ontario) – Provides large‑scale, repayable and non-repayable funding to help businesses in southern Ontario grow, innovate, and compete globally. Through programs such as the Regional Economic Growth through Innovation (REGI) stream, FedDev supports projects that drive commercialization, technology adoption, facility expansion, and market diversification. Eligible businesses can access funding of $125,000 to $10 million, typically covering up to 50% of eligible project costs. Businesses in northern Ontario can access grants from the Federal Economic Development Agency for Northern Ontario (FedNor Ontario).
Invest Ontario Fund (IOF) – Administered by Invest Ontario, the province’s investment attraction agency, the fund provides a mix of loans and grants, often reaching into the millions, for projects in advanced manufacturing, life sciences, and technology. Its goal is to de‑risk large‑scale expansions, encourage global companies to establish or grow operations in Ontario, and strengthen the province’s position as a hub for high‑value industries. With no strict maximum funding cap, the IOF is highly flexible, supporting transformative projects that deliver long‑term benefits such as new jobs, increased exports, and enhanced competitiveness.
Grants for Hiring and Training
Training and hiring grants are designed to help Ontario businesses build stronger teams by reducing the cost of recruitment and workforce development. These initiatives provide wage subsidies and training support that make it easier for employers to bring in new talent, upskill existing staff, and address critical skills gaps.
Canada‑Ontario Job Grant (COJG) – Provides direct financial support to employers so they can invest in training for new or existing employees. The program covers a significant portion of third‑party training costs, allowing businesses to choose the training provider and customize programs to meet their workforce needs. Typically, employers with 100 or more employees contribute half of the training costs, while smaller employers contribute as little as one‑sixth. In some cases, small businesses that hire and train unemployed individuals may qualify for up to 100% of training costs, up to a maximum of $15,000 per trainee.
Canada Summer Jobs (CSJ) – A federal wage subsidy initiative that helps employers create summer work opportunities for young people aged 15 to 30. It provides non‑repayable funding to cover up to 50% of the provincial or territorial minimum hourly wage for private‑sector employers, and up to 100% for not‑for‑profit organizations and public sector employers. The program is designed to give youth valuable, paid work experience while supporting employers with seasonal staffing needs. For SMEs, CSJ is a cost‑effective way to bring in new talent, build capacity during the busy summer months, and contribute to workforce development in their communities.
Youth Employment Program (YEP) – Delivered through the National Research Council’s Industrial Research Assistance Program (NRC IRAP), the YEP provides wage subsidies to help small and medium‑sized businesses hire young post‑secondary graduates. The program offsets a portion of salary costs for internships lasting 6 to 12 months, with funding of up to $30,000 per graduate. Eligible roles must contribute to innovation‑focused projects such as R&D, engineering, product development, multimedia, or market analysis. By lowering the cost of bringing in new talent, YEP enables SMEs to access fresh perspectives and technical skills while giving young Canadians meaningful work experience that builds their careers.
Student Work Placement Program (SWPP) – Provides wage subsidies to help Canadian employers hire post‑secondary students for paid, work‑integrated learning opportunities. Through partnerships with industry associations known as Employer Delivery Partners, the program connects businesses with students in fields directly related to their studies. Employers can receive up to 50% of wages covered (to a maximum of $5,000 per placement), and up to 70% (to a maximum of $7,000) when hiring students from underrepresented groups such as women in STEM, Indigenous students, newcomers, and persons with disabilities. Placements can take the form of co‑ops, internships, practicums, or applied research projects, giving employers access to fresh talent while helping students gain meaningful, career‑relevant experience.
Grants for Innovation and R&D Funding
Innovation and R&D funding programs are designed to help Ontario businesses turn bold ideas into market‑ready solutions. These grants and supports reduce the financial risk of research and development by covering a portion of costs such as salaries, technical expertise, and prototype development. For entrepreneurs and SMEs, they provide both capital and credibility, making it easier to pursue cutting‑edge projects that drive competitiveness and long‑term growth.
IRAP (Industrial Research Assistance Program) – Delivered by the National Research Council of Canada, the IRAP is one of the country’s most established supports for small and medium‑sized businesses pursuing innovation. It provides a mix of financial assistance and expert advisory services to help companies develop, test, and commercialize new technologies. Eligible projects can receive reimbursement for 60–80% of eligible R&D costs, often covering salaries, subcontractors, and technical expenses. With its long track record of fostering growth, IRAP remains a cornerstone program for businesses looking to scale through research and development.
Advanced Manufacturing and Innovation Competitiveness (AMIC) Stream – Part of the Ontario Regional Development Program, the AMIC stream supports small and medium-sized manufacturers ready to modernize and scale. Through a mix of grants and loans, the program helps fund investments in new capital equipment, advanced technologies, and workforce development initiatives. Projects that create jobs, strengthen supply chains, and boost productivity are prioritized, with funding available for up to 15% of eligible project costs and contributions that can reach several million dollars.
Innovative Solutions Canada (ISC) – This federal program connects small businesses with government departments seeking new technologies to solve real‑world challenges. It operates through two main streams: the Challenge Stream, where companies compete to prove the feasibility of their ideas and develop prototypes, and the Testing Stream, where the government purchases and tests innovative products in real‑life settings. For entrepreneurs, ISC offers both funding and a pathway to validate solutions with a first major customer – the Government of Canada – helping to accelerate commercialization and open doors to broader markets.
Intellectual Property Ontario (IPON) – Helps Ontario innovators, entrepreneurs, and researchers protect and leverage their intellectual property as a strategic asset. The IPON offers tailored advisory services, education, and funding support that guide businesses through developing IP strategies, securing patents or trademarks, and improving commercialization outcomes. By strengthening IP literacy and providing access to expert resources, IPON safeguards homegrown innovations and positions them to compete globally.
Mitacs – A national initiative that helps Canadian businesses collaborate with top researchers to solve real‑world challenges and drive innovation. By connecting companies with graduate students, postdoctoral fellows, and academic experts, Mitacs provides both funding and access to specialized knowledge that can accelerate R&D and commercialization.
NGen Manufacturing Program – Delivered through Canada’s Global Innovation Cluster for Advanced Manufacturing, this program co‑invests alongside private sector partners to support initiatives that de‑risk new technologies, accelerate commercialization, and scale innovative production capabilities. Eligible projects often focus on advanced materials, digital manufacturing, automation, and clean technologies, with funding contributions totalling millions, depending on scope and impact.
Canadian International Innovation Program (CIIP) – Helps Canadian SMEs collaborate with international partners on research and development projects that have strong commercialization potential. It focuses on priority markets, including Brazil, China, India, Israel, and South Korea, and supports joint projects in technology adaptation, validation, and co‑development. Eligible businesses can receive up to 50% of project costs covered, with contributions reaching up to $600,000, making it a powerful tool for cross‑border innovation. Beyond funding, CIIP also facilitates networking and partnership development activities, giving Canadian firms a pathway to expand globally while advancing their R&D.
Strategic Response Fund (SRF) – Replacing the Strategic Innovation Fund (SIF), the SRF provides large‑scale funding to support business‑led projects with strong potential to drive innovation, create jobs, and strengthen Canada’s global competitiveness. It offers repayable and non‑repayable contributions, often covering up to 50% of eligible project costs, for initiatives in advanced manufacturing, clean technology, life sciences, digital industries, aerospace and more. Designed for projects that require significant investment, SIF helps de‑risk ambitious R&D, commercialization, and scale‑up activities while attracting additional private capital.
Final Thoughts
Securing the right funding can be the difference between maintaining the status quo and unlocking the next stage of growth. Ontario businesses have access to a wide range of grants and incentives for innovation, expansion, hiring, and training that can significantly reduce financial risk while accelerating strategic goals. The key is knowing which programs align with your company’s size, sector, and ambitions, and then approaching the application process with a clear plan.
By leveraging these opportunities, SMEs can strengthen their competitiveness, invest in people and technology, and position themselves for long‑term success in both domestic and global markets.
This article was written by the NVS Professional Corporation team, your knowledgeable Barrie and Markham accountants. The content is intended as a general guide for informational purposes only. For specialist advice tailored to your specific situation, please reach out to our expert team.
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