Getting financing is one of the biggest hurdles entrepreneurs face when starting or growing a business. Let’s clear up a common myth: there’s no universal pot of free grant money for every business. Most funding programs are designed for specific industries, regions, or groups—like youth, Indigenous entrepreneurs, veterans, or those innovating in tech.
In the early stages, the most important financial sources will probably be you, friends, relatives and financial institutions.
The most common source of financing for small businesses is the chartered banks. Banks can provide a number of financing options, such as short-term loans, long-term mortgage loans and, in some cases, loans against inventory or accounts receivable. Other important sources of financing in this category include trust companies and credit unions.
For very small firms and home-based businesses, credit cards, home equity and lines of credit often provide a ready means of obtaining small-scale debt capital. While convenient, they bear relatively high rates of interest and limit the amount of capital available. Often it makes sense to start with the bank you are already with, they know you and have a history of your banking activities.
Each situation is different, and it is critical that a good business plan be developed to determine the overall needs of the business.
Here are a list of programs that you can research. Do not pay for any books or lists of these grants as they are publicly available without you having to pay for them. Each of these programs have their own eligibility criteria and requirements.
Where to Start
In the early stages, your best financial resources might be:
- Your own savings
- Support from friends and family
- Financial institutions like banks, credit unions, and trust companies
Tip: Start with the bank you already use. They know your history and may be more open to supporting your business.
Before You Apply
Every funding program has its own eligibility criteria. That’s why a solid business plan is non-negotiable. It shows funders you’re serious, prepared, and ready to grow.
Never pay for lists of grants. These resources are publicly available and free.
Popular Grant and Funding Programs
Government Programs
- Government of Canada Grants & Loans
- Ontario Government Funding Opportunities
- Durham Region Community Funding Resources
BACD Programs
Specialized Support
- Canada Council for the Arts Grants
- Canada Summer Jobs – subsidies for students aged 16 – 30 for summer jobs
- CICan Career Launcher Internship – wage subsidies, hiring incentives, tools and resources to help you meet the future needs of your industry
- Co-operative Education Tax Credit – refundable tax credit for Ontario-based co-op employers who hire students enrolled in a co-operative education
- Employment and Social Development Canada – grants and contributions that help support jobs, training, and social development
- Employment Ontario – incentives to help hire and train employees for your business
- Funding for Indigenous Entrepreneurs
- Grants and Subsidies for Agriculture -Funding, Programs and Services for agricultural businesses
- Magnet Student Work Placement Program – wage subsidies to hire post-secondary students for paid work experiences
- Mitacs Accelerate – research internship program that supports collaborative research projects between Canadian colleges or universities
- NRC IRAP – provides advice, connections, and funding to help Canadian small and medium-sized businesses increase their innovation capacity
- Ontario Centre of Innovation – Digitalization SME grant
- Ontario Arts Council Grants
- Ontario Power Authority – Save on Energy Incentives for Business – receive up to 50% of project costs for upgrading old or inefficient equipment.
- SOCAN Foundation Relief Fund – grants for Canadian music creators and publishers working to promote appreciation for Canadian music industry
- Science and Technology Internship Program (STIP) – Green Jobs – provides funding to hire and mentor youth in the natural resources sector
- Student Work Placement Program (SWPP) – gives post-secondary students across Canada paid work experience related to their field of study
Financing Options
These programs offer loans and other financial support:
- BDC Business Financing – Business Development Bank of Canada has many business financing programs for businesses and entrepreneurs including Women in Tech and Women Entrepreneurs
- Farm Credit Canada Financing – focused on supporting Agriculture, Agribusiness and Food and Beverage Businesses.
- Canada Small Business Financing Program – Most start-ups and existing for-profit small businesses in Canada with gross revenues of $10 million or less are eligible to apply for loans under this program. Such businesses can be corporations, sole proprietors, partnerships or cooperatives.
- Community Futures Program – various loan programs for Urban and Rural businesses
- LendingLoop – Canada’s most affordable online business loan – built for small business owners.
- Fair Finance Fund: For Food Entrepreneurs
- Futurpreneur: Various programs for entrepreneurs including mentorship
- Rise Asset Development – microloans for those self identifying with mental health challenges
- Access Community Capital Fund – offering low-interest, character-based business loans for your business
- Alterna Savings Micro-Financing – microloans for small businesses
- Swoop Funding – an easy to use platform to search all financial and grant programs for your business
Crowdfunding Platforms
Grant Program Search Platforms
Ready to Take the Next Step?
At BACD, we’re here to help you navigate the funding landscape. Whether you’re applying for a grant, preparing a pitch, or building your financial strategy, our advisors are just a call away.
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