Key takeaways:
Running a business means constantly making trade-offs between risk and reward, growth and cash flow, the long term and today’s realities. But one piece of the funding puzzle is often underused: government incentives.
Across Canada, there are thousands of grants, tax credits, and funding programs designed to help businesses grow, hire, innovate, and expand into new markets. These programs don’t require giving up ownership. Instead, they help you extend runway, offset costs, and scale faster if you know how to find and use them.
This guide is your starting point. You’ll learn what kinds of programs exist, how they work, which activities are most likely to be funded, and how to build a simple roadmap to weave funding into your growth strategy. Along the way, we’ll point to digital tools (like grant matching platforms and financing options similar to the ones we offer here at Scotiabank, that will help you to make the most out of your funding roadmap.
No single source of capital fuels every stage of growth. The most successful companies combine non-dilutive funding with traditional financing to build a flexible capital stack that supports daily operations and long-term investments.
Here’s how each type fits into a well-rounded plan:
Type |
Description |
Best Used For |
Non-repayable or low-interest funding tied to specific activities or outcomes. |
Innovation, hiring, exports, sustainability. |
|
Repayable, flexible capital that bridges timing gaps and provides liquidity. |
Upfront costs, matching funds for grants, maintaining cash flow. |
|
Equity Investment |
Capital exchanged for ownership or future returns. |
High-growth scaling, expansion, commercialization. |
Each source serves a purpose, grants reduce project risk, loans provide agility, and equity fuels scale. For instance, a line of credit can cover upfront expenses while awaiting grant reimbursement, ensuring progress without cash-flow strain. Pairing a grant with financing can amplify impact, funding technology upgrades or new hires with less risk.
When planned together, these tools create a balanced funding strategy that supports growth, preserves ownership, and keeps your business agile.
The Scale of Opportunity
Canada’s incentive ecosystem is one of the most generous in the world. More than 8,000 programs exist nationwide, and at any given time around 1,700 are open for applications.
Programs are offered at the federal, provincial, and municipal levels, each with its own priorities. Staying organized is key, because eligibility criteria and deadlines shift throughout the year.
The Building Blocks: Grants, Tax Credits, Incentives, and Contributions
Government funding in Canada comes in several forms, each designed to support businesses differently. Understanding these building blocks will help you see how they fit into your broader financial strategy, some programs provide upfront, non-repayable support, while others reimburse or reduce costs after spending.
Here’s a closer look at the key types:
1. Grants
Provide non-repayable support for projects with defined milestones and measurable outcomes. Ideal for activities like technology adoption, export expansion, or workforce training, grants often reimburse a portion of eligible costs once deliverables are met.
2. Tax Credits
Reimburse a percentage of eligible spending after the fact, helping offset R&D, innovation, or digital-transformation costs. Common examples include SR&ED: A Guide to SR&ED Tax Credits for Canadian SMBs - Hello Pocketed, Canada’s R&D tax credit, and interactive media credits for digital and creative industries.
3. Wage Subsidies
Cover 25–75% of new-hire salaries Fueling Business Growth: The Ultimate Guide to Hiring Grants - Hello Pocketed helping businesses bring on talent while reducing payroll pressure. Programs like ICTC, Venture for Canada, ECO Canada, and Canada Summer Jobs support hiring across sectors and skill levels.
4. Loans & Contributions
Offer business-friendly interest rates or flexible repayment over several years, particularly for capital investments such as equipment purchases or facility upgrades. Some include partial non-repayable portions when tied to job creation or regional development.
5. Rebates & Refunds
Reward businesses for energy-efficiency improvements, equipment modernization, or other sustainability-focused upgrades. These programs typically reimburse a portion of project costs after implementation and verification.
Together, these tools form the core pillars of Canada’s funding ecosystem. Each works differently, but all aim to reduce risk and fuel business growth.
Common Myths and What’s Actually True
Too often, businesses miss out on funding because of common myths and misconceptions. The truth is, many programs are straightforward, transparent, and built to support small and mid-sized companies. By cutting through the noise, you can approach funding with confidence and tap into opportunities that others tend to overlook.
Myth |
Reality |
“Grants are free money.” |
They’re co-investments with clear milestones and reporting requirements. |
“You can’t combine programs.” |
Many allow stacking, covering up to 75–100% of project costs when each funder supports a distinct activity. |
“Only tech companies qualify.” |
Agriculture, manufacturing, retail, and services can all access funding for innovation, hiring, and training. |
“It’s too complicated.” |
Online tools like Pocketed and professional support simplify discovery, tracking, and applications. |
“You need connections.” |
Programs are public, merit-based, and open to all eligible businesses. |
“Grants are a quick fix for cash flow.” |
Most programs require planning, reporting, and matching funds. Grants can be transformative, but they aren’t designed as emergency cash. |
“The government will cover all your costs.” |
Nearly all grants are cost-share, meaning you still need to invest. Typical coverage ranges from 25%–75% depending on the program. |
Priority Industries & Fundable Activities
Most government programs focus on what you’re doing rather than who you are. Funding typically targets activities that create measurable value through innovation, sustainability, or job growth.
Below are the most commonly supported types of activities to help you spot where your projects may qualify:
Innovation & R&D
Support for developing new products, processes, or technologies from feasibility studies and prototyping to collaboration with research institutions.
Sample programs: SR&ED, NRC IRAP: More Than Funding: How NRC IRAP Accelerates Innovation Projects - Hello Pocketed, provincial innovation vouchers.
Technology Adoption & Digital Transformation
Funding to implement automation, AI, or e-commerce tools that boost productivity, security, or customer reach.
Sample programs: Regional Artificial Intelligence Initiative, regional productivity grants.
Hiring, Training & Workforce Development
Assistance to hire or upskill employees, often focused on youth, students, or underrepresented groups.
Sample programs: SWPPs (ICTC, Venture for Canada), BioTalent, ECO Canada, Canada Job Grant.
Export Expansion & Market Diversification
Programs that support trade missions, market research, or marketing for international growth.
Sample programs: CanExport SMEs, CanExport Innovation, regional trade funds.
Sustainability & Clean Technology
Incentives for reducing emissions, improving energy efficiency, or adopting low-carbon solutions.
Sample programs: Business Growth Fund – Clean Tech, Strategic Innovation Fund (SIF), provincial rebate programs.
Capital Investment & Modernization
Support for facility expansions, equipment upgrades, or productivity improvements.
Sample programs: REGI, Business Scale-up and Productivity (BSP), provincial manufacturing supports.
Usually Not Funded by Grants
- Routine maintenance or daily operations
- Completed (retrospective) projects
- Debt repayment or refinancing
- Administrative overhead
If your project drives innovation, creates jobs, or supports sustainability, there’s a strong chance it qualifies.
Securing funding isn’t about chasing one-off opportunities, it’s about building a roadmap that aligns programs with your long-term goals. A well-structured funding plan ensures your projects are timed strategically, match eligibility windows, and make the most of stacking opportunities.
Follow these steps to start building your roadmap:
1. Assess Your Business Goals
Begin with what you’re already planning, whether it’s hiring, expanding, or adopting new technology. Funding should support your priorities, not create new ones.
2. Identify Fundable Activities
Match each initiative to eligible funding areas such as innovation, export, or sustainability. Many programs publish detailed criteria outlining what they’ll support, use these as your filters.
3. Research and Shortlist Programs
Look for programs that align with your timelines, industry, and project scope. Tools like a grant matching platform can help you filter and track relevant opportunities across federal and provincial levels.
4. Plan Timing and Stacking
Map application deadlines, approval windows, and reimbursement schedules. Strategic stacking (i.e. combining complementary programs) can cover up to 75–100% of project costs when done correctly.
5. Prepare Documentation Early
Gather business plans, quotes, and financials before you apply. Having materials ready makes it easier to meet deadlines and respond to follow-up questions from funders.
6. Bridge Cash Flow if Needed
Many programs reimburse costs after milestones are achieved. Consider using short-term financing or a line of credit to cover upfront expenses and keep projects moving.
7. Track, Measure, and Reinvest
Once funding is secured, track deliverables and maintain good reporting habits, these build credibility for future applications. Reinvent successful projects into repeatable funding cycles each year.
A clear funding roadmap turns uncertainty into action. By knowing which activities qualify, when to apply, and how to prepare, you can move from reactive applications to a proactive, repeatable funding strategy that compounds year over year.
Tools & Support Along the Way
You don’t need to navigate this alone.
Depending on your stage and capacity, consider:
- Pocketed’s grant-matching platform – Filter, compare, and track programs in one place.
- Funding specialists - Grant Writing - Hello Pocketed – Help scope projects, write applications, and manage reporting.
- Business-financing solutions – Bridge cash-flow gaps or provide matching funds for stacked programs.
- Advisory services – Align funding strategy with long-term innovation or export goals.
Select the combination that matches your internal resources and growth plans.
Winning government funding takes planning, timing, and organization. The more proactive you are, the easier it becomes to turn opportunities into results.
- Start with Clear Priorities
Know what you’re funding (i.e. hiring, innovation, expansion) and define measurable outcomes. Funders back projects with tangible impact. - Apply Early and Often
Many programs run on rolling intake or limited budgets. Submitting early boosts your chances before funds run out. - Stay Ahead of Deadlines
Create a simple tracker for due dates, approvals, and reports. Consistency beats last-minute scrambling. - Gather the Right Documentation
Keep financials, quotes, and project plans handy. These essentials speed up applications and follow-ups. - Leverage Professional Support
Grant specialists and tools like Pocketed can simplify discovery and paperwork, freeing you to focus on execution. - Plan for Cash Flow
Most programs reimburse after milestones. Short-term financing or a line of credit helps cover upfront costs and avoid delays. - Think Long-Term
Each successful application builds credibility. Document outcomes and refine your process so funding becomes a reliable part of your annual strategy.
With a clear plan and disciplined approach, you’ll improve your success rate and turn funding into a sustainable growth engine.
Government funding isn’t a one-time windfall, it’s a strategic resource that, when planned correctly, can power your business growth for years to come. By understanding how programs work, mapping your roadmap, and stacking opportunities, you can turn public incentives into real financial momentum.
As you move forward:
- Clarify your goals so you know what activities to fund.
- Build a simple roadmap that connects your projects to the right programs.
- Use digital tools to stay organized and spot new opportunities as they open.
- Lean on trusted partners from funding professionals to your financial advisor to bridge gaps and keep cash flow steady.
If you’re ready to start exploring programs tailored to your business, tools like Pocketed’s funding platform can help you filter and track opportunities, while your Scotiabank advisor can guide you in structuring financing to complement your funding plan.
Together, these supports make it easier to plan confidently, act strategically, and grow sustainably with funding that fuels every stage of your journey.
