Top Government Grants For Startups in 2019

As a Canadian small business starting out in 2019, you may be eligible for some of these top government grants for startups!

While there are a number of government grants, not every Canadian startup is eligible for the funds.

The competition for government funding in general is pretty fierce but if you and your business are open to the possibilities of working towards a better global initiative, hiring new graduates, are committed to research and bettering the economy and peoples lives, you may be able to qualify for a government grant from the Canadian government.

When it comes to government grants for startups, they are often offered for such purposes and come from all levels of the government, your local province/territory, the federal government and often other businesses and organizations.

Take a minute to use the Funding Calculator Tool to see if your business may be eligible for government funding!

In 2019, there are certain government grants for startups which all business owners my eligible for if they meet the criteria.

Let’s now review the 7 of the most popular government grant programs in 2019 which small business owners may take part in.

Top Government Grants For Startups

Free money is out there to help your startup business navigate worry free though the startup process which often is the most difficult in the first year due to financial constraints. And even though finding and applying to government grants may take up valuable time, may take you away from your “business path” initially, it is recommended to proceed and find the programs which your business may be eligible for a sit can often mean success financially speaking.  Imagine receiving a startup grant to help you with the day to day operation of your business?

Here are the top 7 startup grant programs in Canada for 2019:

1. Strategic Innovation Fund (SIF)
2. Scientific Research and Experimental Development (SR&ED)
3. Canada Job Grant (CJG)
4. CanExport
5. Industrial Research Assistance Program (IRAP)
6. SmartStart Seed Fund
7. SD Tech Fund

Strategic Innovation Fund (SIF)

First on our list of top government grants for startups for 2019 is the Strategic Innovation Fund; abbreviated as “SIF”.

This government funding program is provided directly by the government of Canada and helps with advancing innovator across many different sectors in Canada.  The main purpose of the funds obtained from SIF would be to help small business owners and startup entrepreneurs to simplify and to accelerate the processes and their technologies, as well to provide assistance which focuses on results.

The funding from the Strategic Innovation Fund is available Canada-wide and is separated into four different “streams” focusing on specific objectives:

Stream 1: To encourage research and development which focuses towards accelerating the current and new production of technology as well as the commercialization of new products/services and processes. 

Stream 2: To focus on facilitating the growth and expansion of business across the country.

Stream 3: To attract and retain large-scale investments into the country.

Stream 4: To encourage the advancement of industrial research, development and technology via collaboration between private sectors, researchers and non profit organizations.

Scientific Research and Experimental Development (SR&ED)

Our second government funding program on the list is not technically a government grant but a refundable tax credit.

The Scientific Research and Experimental Development tax credit (pronounced “Shred”) is claimed on your annual taxes. This  tax credit is geared towards startups and business owners conducting research and development towards their products, services and processes.

The SR&ED program is available to all businesses across Canada.

While it may depend on the type of business you’re in, the potential is that you may be eligible for a 15% refund on any research and development taking place in your business.

That’s a big return if you are investing your own funds!

Did you know…

The above 2 programs (the SH&ED and the SIF ) are only  of the many available funding programs that the Canadian government has to offer small business owners and startups?

As we go though the 7 top government grant programs it’s important to consider your options above and beyond just those 7.

Try the Funding Calculator here to see what your business may be eligible for.

Canada Job Grant (CJG)

The Canada Job Grant is a government grant program that is available Canada wide to small business owners and startup entrepreneurs.

This grant program offers up to $10,000 in funding which a business can use towards training and developing your workforce.

That means that the funding can be used towards a variety of purposes such as hiring and training programs, towards developing skillsets and enhancing the employee performance on the job.

While the Canada Job Grant program is available Canada wide, it’s important that in most provinces there are equivalent programs offering the same and in most cases will dictate the specific funding requirements and eligibility criteria.

In order to be eligible for the Canada Job Grant for your startup business, you will most likely need to meet the eligibility requirements for your specific province or territory which your business is in.

CanExport

The Canada Export grant program is available and is very popular, it is not for many businesses unless you are involved with exporting.

If your small business is operating in a market which represents less than 10% of $20,000 of international sales over the past 24 months, you may be eligible to apply for the CanExport grant program.

The CanExport grant program helps to fund research, competition analysis, product certifications, translation of marketing/packaging, professional development and marketing tools.

This specific grant includes funding of up to $50,000 or up to 50% of the project expenses, and is available Canada wide.

The chance of getting funding from CanExport are great then some of the other funding grant programs on the list as CanExport does provide funding up to a 1,000 businesses per year. As long as you meet the criteria of the grant program, such as employing 1 to 500 employees, running a small or medium sized business, have an annual revenue of at least $100,000 and have $20,000 project on the table, you may be eligible.

Again this program may not be that helpful to you unless you are in the export business!

Industrial Research Assistance Program (IRAP)

The Industrial Research Assistance Program abbreviated as IRAP is one of the larger government grant programs available.

IRAP provides small business startups with funding between $50,000 to $500,000 and is available Canada-wide.

Often, larger businesses tend to get more funding, however many small businesses are eligible for small grant amounts as well.

The program, supports development and commercialization of technology-driven products, services and processes across Canada.

This specific grant program is available Canada wide and in order to be approved you must have at least one full time employee. The funds obtained are issued prior to the spend, so if you’re intentions are to apply be sure to apply for the startup grant program before you spend the funds

SmartStart Seed Fund (Ontario Only)

The SmartStart Seed Fund is a very popular government startup program that is offered by the government of Canada and provides a grant of up to $70,000 for startups to benefit from.

The only catch is that you do need to be operation in the tech or innovation space within the province of Ontario.

If successful, additional funding of up to $7,500 is available for training and other professional support services.

To be eligible for the SmartStart Seed Fund, there are a number of conditions and requirements such as:

• You must be a Canadian Citizen or Permanent Resident
• Be a first time applicant
• You must meet the age requirement
• Must be incorporated in Ontario
• You must own your own intellectual property
• Obtain an endorsement
• Match the main funding at a rate of 1:1(which means the government will match what you put in)

SD Tech Fund

The final program on the list of popular government grants for 2019 is the SD Tech Fund.

If you are running a clean technology business, the SD Tech Fund caters towards those who are looking to support the green industry.

Grants are offered to businesses working in the clean energy, air, water and climate change space and offering a 33% contribution towards the fund.

Funding is conscious as new milestones are set and this program is effective Canada-wide.

That summarizes the 7 of the top government grant programs available for small business startups for 2019 but as mentioned, it is important to consider the many more government funding programs available.

For instance, the Funding Database offered by CanadaStartups.org lists over 1,500 funding sources that business owners and startups may take advantage of – ranging from government grants, government loans, tax breaks and private investors.

If you and your small business are in need of funding – let’s get started and get those funds.

Try the Funding Calculator Tool right now to see what you may be eligible for.

Before moving on, here are a few of the top frequently asked questions in regards to government funding, government grants and obtaining funding for your business:

Am I guaranteed to obtain a grant if I apply?

While funds are provided to many small business owners, simply applying to a program does not ensure you are guaranteed funding. Applying to funding is no different then applying to a job – just because you apply and have an interview does not mean you will get the job – or the funding!

How do I apply for a grant?

Each government grant program has different application guidelines/criteria which you must meet before you apply. It is recommended to contact the program directly and ask for step guidance.

What will I need to apply for a grant?

While the requirements can be different from program to program, generally you will need to have a detailed explanation of your business often in a full and in-depth business plan, projected financials and a clear expiation of your funding needs.

Are there grants for everyone?

There are many different grant programs and while everyone has an equal opportunity at applying to them, only those businesses who meet the criteria and the eligibility are able to get the funds.