25 Best Small Business Grants in Ontario for 2026
Growing a small to medium business in Ontario takes money. Whether you are starting a new company or expanding a local shop, getting the right funding can be the difference between just surviving and truly succeeding.
In 2026, government programs are mostly focused on helping businesses with digital upgrades, local production, and worker training. Whether you need to buy new equipment to produce souvenir items, build an online store, or hire skilled staff, here is everything you need to know to get funded.
What Is a Small Business Grant?
A small business grant is a sum of money awarded by a government body, non profit organization, or corporation to help an enterprise start, modernize, or expand. Unlike traditional bank loans, pure grants generally do not need to be repaid.
However, in the 2026 policy environment, grants are treated as strategic investments. Most programs now require business owners to match a portion of the funding with their own capital. These funds are often tied to specific milestones like job creation, technology adoption, or mandatory business training to ensure long term commercial viability.
25 Best Ontario Small Business Grants
Here are 25 of the most impactful funding programs available to Ontario businesses in 2026, extracted from the latest provincial and federal data.
1. Starter Company Plus
Region: Ontario
Funding Amount: Up to $5,000
This flagship provincial program is designed for entrepreneurs aged 18 and older who are not in school full time. It provides a combination of seed capital and personalized business coaching. To ensure commitment, 2026 regulations require applicants to match at least 25 percent of the grant amount with their own cash or physical assets.
Official Link: Starter Company Plus
2. Summer Company Grant
Region: Ontario
Funding Amount: Up to $3,000
Targeted at students aged 15 to 29, this program helps young entrepreneurs launch a business over the summer break. The funding is split into two parts. The first $1,500 is provided upfront for startup costs, and the remaining $1,500 is awarded upon successful completion. High school students must commit 280 hours, while college and university students must commit 420 hours to their venture.
Official Link: Summer Company
3. Market Diversification and Trade Resiliency Initiative
Region: Ontario
Funding Amount: Up to $70,000
This program helps businesses expand to non United States markets. It reimburses up to 35 percent of eligible costs to help primary producers and food processors diversify their export strategies.
Official Link: Market Diversification and Trade Resiliency Initiative
4. Food Safety and Growth Initiative
Region: Ontario
Funding Amount: Up to $75,000
Designed for micro and small producers with fewer than 100 employees, this grant covers half of the costs to upgrade processing equipment and traceability systems. It aims to help businesses meet international food safety certifications.
Official Link: Food Safety and Growth Initiative
5. Tourism Growth Program
Region: Ontario
Funding Amount: Varies by project
Funded by a $108 million federal pool, this program supports tourism businesses. It prioritizes projects that attract visitors to rural areas, develop off season products, and build sustainable outdoor experiences.
Official Link: Tourism Growth Program
6. Small Cidery Program
Region: Ontario
Funding Amount: Up to $220,000
This grant supports micro cideries that produce less than 3 million liters annually using Ontario apples or pears. The non repayable grant is issued based on sales volume to help local businesses expand their operations and improve cash flow.
Official Link: Small Cidery Program
7. Indigenous Economic Development Fund
Region: Ontario
Funding Amount: Varies by project
This fund provides capital to Indigenous micro businesses and communities. The grants support strategic economic diversification and help train local youth for employment.
Official Link: Indigenous Economic Development Fund
8. Honey Bee and Maple Production Improvement Initiative
Region: Ontario
Funding Amount: Micro grants
This specialized initiative provides targeted grants for beekeepers and maple syrup producers. Funds can be used to purchase equipment that improves hive survival rates or upgrades maple sap collection systems to build industry resilience.
Official Link: Honey Bee Health Initiative
9. Retail Modernization Project Grant
Region: Ontario
Funding Amount: Up to $5,000
This grant helps physical retail or food businesses with 1 to 50 employees modernize their operations. Funds can be used to purchase hardware and software such as point of sale systems, inventory scanners, or customer management tools. Purely home based businesses are not eligible.
Official Link: Retail Modernization Project Grant
10. Digital Modernization and Adoption Plan
Region: Ontario
Funding Amount: Up to $15,000
Targeted at businesses with 1 to 499 employees, this plan funds the hiring of digital adoption consultants to create a comprehensive transformation roadmap. This is a strategic prerequisite for many larger grants, as completing this plan often unlocks access to up to $100,000 in implementation funding later.
Official Link: Digital Modernization and Adoption Plan
11. Digital Main Street Ontario Grants
Region: Ontario
Funding Amount: $2,500
Designed specifically for physical retail micro businesses, the 2026 iteration of this grant includes a mandatory Artificial Intelligence readiness assessment. Business owners must execute a digital transformation plan and submit monthly performance reports for six months to demonstrate the impact of the technology.
Official Link: Digital Main Street
12. Canada Digital Adoption Program
Region: National
Funding Amount: Up to $2,400
This program helps consumer facing businesses boost their online presence. To qualify, businesses must have at least one employee or annual revenue exceeding $30,000. It works on a reimbursement model, covering costs for website upgrades and digital marketing tools.
Official Link: Canada Digital Adoption Program
13. Worker Retention Grant
Region: Ontario
Funding Amount: Approximately 70 percent wage replacement
In response to economic and tariff fluctuations in 2026, this federal and provincial fund supports employers who need to reduce staff hours. Rather than laying off skilled workers, the grant subsidizes their wages while the employer provides mandatory skills training during the off hours to maintain competitiveness.
Official Link: Worker Retention Grant
14. Skills Development Fund Training Stream
Region: Ontario
Funding Amount: Project based
This fund supports innovative training projects that address specific hiring and retention challenges in Ontario. It is particularly focused on sectors impacted by trade shifts, such as manufacturing and automotive, helping companies upskill their existing workforce for advanced technology roles.
Official Link: Skills Development Fund Training
15. Skills Development Fund Capital Stream
Region: Ontario
Funding Amount: Capital expenditure grants
While the training stream funds soft costs, the capital stream focuses on physical infrastructure. One path funds the architectural design and planning of training centers, while another path funds the actual construction or renovation of physical facilities for internal employee development.
Official Link: Skills Development Fund Capital
16. Canada Ontario Job Grant
Region: Ontario
Funding Amount: Up to $10,000 per person
This grant provides direct financial support to individual employers who wish to purchase training for their employees. Small businesses with fewer than 100 employees need only pay a small fraction of the training costs. Note that the current 2026 iteration is undergoing a redesign, making early applications highly time sensitive.
Official Link: Canada Ontario Job Grant
17. Better Jobs Ontario
Region: Ontario
Funding Amount: Up to $35,000
This program supports individuals who have been laid off or are long term unemployed to retrain for high demand occupations. For employers, this is a vital pipeline for finding skilled talent whose education has been fully subsidized, including tuition, books, and living allowances.
Official Link: Better Jobs Ontario
18. Eastern and Southwestern Ontario Development Fund
Region: Eastern and Southwestern Ontario
Funding Amount: Up to $5 million
Businesses expanding in these regions can access interest free loans. A key feature is that up to 30 percent of the loan can be converted into a grant that does not need to be repaid if the business meets specific job creation and investment targets within four years of project launch.
Official Link: Eastern and Southwestern Ontario Development Fund
19. Rural Ontario Development Program
Region: Rural Ontario
Funding Amount: Up to $150,000
This program supports economic diversification in rural communities. It is accessible to businesses with 1 to 20 employees and funds projects that rehabilitate community assets or expand local business capacity to reach new domestic or international markets.
Official Link: Rural Ontario Development Program
20. INVEST North Program Launch Stream
Region: Northern Ontario
Funding Amount: Up to $200,000
This stream lowers the capital barriers for entrepreneurs starting full time businesses in Northern Ontario. It covers 50 percent of eligible costs, including equipment and facility improvements, subject to specific postal code and regional economic benefit eligibility.
Official Link: INVEST North Program
21. Critical Minerals Processing Fund
Region: Ontario
Funding Amount: Part of a $500 million fund
This fund is dedicated to keeping the processing of critical minerals like nickel and lithium within the province. It provides massive capital support for companies building or expanding refining facilities to supply the electric vehicle market.
Official Link: Critical Minerals Processing Fund
22. Ontario Film and Television Tax Credit
Region: Ontario
Funding Amount: 35 percent refundable tax credit
While technically a tax credit, this functions like a grant by refunding 35 percent of eligible labor costs for production companies. It is fully refundable and encourages companies to conduct animation and filming within the province.
Official Link: Financial Incentives
23. CanExport SMEs
Region: National
Funding Amount: Up to $50,000
This grant helps companies with significant revenue explore new global markets. Under 2026 rules, applicants must choose between the United States or non United States markets. It covers half of the expenses for international trade shows, travel costs, and market research to diversify export risk.
Official Link: CanExport SMEs
24. Ontario Creates Interactive Digital Media Fund
Region: Ontario
Funding Amount: Up to $300,000
For established digital media companies, this fund supports the production and concept development of interactive content. Applicants must demonstrate that at least 25 percent of their revenue or half of their expenses were dedicated to screen based content development in the previous two years.
Official Link: Interactive Digital Media Fund
25. DMZ Black Innovation Program
Region: Toronto and Ontario
Funding Amount: Up to $250,000 over 5 years
This program provides $50,000 annually for five years to tech startups that are majority owned and led by Black entrepreneurs. Beyond the capital, it provides high tier networking opportunities and venture capital introductions through an annual summit to break industry barriers.
Official Link: Black Innovation Program
image: Microsoft 365
How to Get a Small Business Grant in Ontario
Securing government funding in 2026 requires more than a profitable business idea. It requires a tactical approach to compliance and timing.
Implement Funding Stacking: Do not start by applying for a massive expansion loan. Start by securing smaller diagnostic grants to obtain a government endorsed digital assessment. Having this official roadmap significantly increases your credibility when applying for larger capital implementation funds later.
Prepare Financials Radically Early: Application windows are increasingly tight. Some programs may only open for 30 days. You should have a rigorous 24 month cash flow stress test and audited financial statements ready at least one quarter before you intend to submit.
Align with Macro Narratives: Reviewers look for policy alignment. When seeking funds for equipment, do not just describe it as increasing efficiency. Frame it as a project that brings supply chains back to Ontario, creates high value local jobs, and improves your carbon footprint metrics.
Final Thought
Government grants and loans in 2026 are sharp industrial tools designed to strengthen the economy in Ontario. By focusing your application on the core priorities of the government, such as supply chain resilience, aggressive digitalization, and local workforce upskilling, you can leverage these funds as a powerful engine to modernize your operations and scale your business securely.
FAQs
How to get a small business grant in Ontario?
To secure a grant, you must first identify a program that aligns with your specific goals, such as hiring, equipment, or digital upgrades. You will typically need to submit a detailed business plan, cash flow forecasts, and proof of matching funds. Many programs now require you to complete a mandatory training or coaching module before the funds are released.
Who is eligible for Ontario grants?
Eligibility varies by program but generally includes for profit businesses incorporated in Ontario with a physical presence in the province. Most grants target specific groups such as startups, students, newcomers, or established businesses with 1 to 499 employees. Note that purely home based or drop shipping businesses are excluded from several digitalization grants.
