SMEs in Canada face unique funding needs: high start-up costs, limited access to traditional credit, and costly growth needs. To assist SMEs, the Canadian government has introduced new funding avenues to support innovation, digital adoption, expansion, R&D, sustainability, and export development. GrantMatch has curated a short list of the best opportunities for SMEs to consider this year.
SMEs engaging in scientific research and experimental development (SR&ED) can earn tax credits and deductions that lower their tax burden for the applicable tax year.
The SR&ED tax incentive program encourages Canadian businesses across all sectors to conduct research and development in Canada by providing eligible projects with an investment tax credit (ITC) of 15-35% of eligible costs. Additionally, SMEs can claim a deduction against income based on their allowable SR&ED expenditures for the fiscal year.
Eligible types of activities include:
Organizations of all sizes and types, including start-ups, SMEs, and large corporations, can make an SR&ED claim up to 18 months after their fiscal year-end.
Innovative small or medium-sized organizations in Canada should consider applying to the National Research Council of Canada (NRC) Industrial Research Assistance Program (IRAP).
The IRAP supports Canadian SMEs in building innovation capacity to take ideas to market. The program offers financial, advisory, and networking assistance to help SMEs develop and commercialize technologies and collaborate with organizations to support technology development and commercialization. Funding from the IRAP is not fixed and can range from $50,000 to $1M.
Types of projects that qualify for this program include:
This grant funding opportunity is open to all Canadian SMEs with under 500 employees.
The Supply Management Processing Investment Fund (SMPIF) supports agricultural producers adapting to market changes with dedicated grant funding for investments into processing facilities, productivity improvements, and equipment.
Eligible applicants include for-profit:
This program is ideal for eligible applicants who are increasing automation or productivity, improving environmental sustainability, and responding to consumer demand concerning food safety and animal welfare.
SMEs with fewer than 500 employees are eligible for up to $5M at a 50% cost-share, with some dairy streams offering up to $10M in funding. Large companies with over 500 employees are eligible for the same maximum funding amount with a 25% cost-share.
As part of the Government of Canada’s tariff response plan, the Regional Tariff Response Initiative (RTRI) invests in activities that boost productivity, strengthen supply chain resilience, lower costs, and enhance competitiveness within the steel and automotive industries.
By supporting SMEs affected by tariffs with grant or loan funding, the RTRI equips SMEs in the Canadian steel sector to better adapt to global trade disruptions, seize new opportunities, and boost domestic trade. Eligible organizations must have fewer than 500 employees and be impacted directly or indirectly by U.S., Chinese, or Canadian counter-tariffs.
Funding amounts vary by Regional Development Agency but can range from $125,000 to $1M in grant funding and $125,000 to $10M in repayable loan funding.
The Northern Industries Innovation Fund (NIIF) provides support to SMEs in British Columbia engaged in forestry, agriculture, aquaculture, mining, energy, oil and gas, manufacturing and the supply chain activities related to these sectors.
This program provides funding for innovative projects that increase competitiveness and support economic diversification to mitigate the economic impacts of pine beetles on the nation's forests.
NIIF funding supports R&D, new or improved products/services, and innovative equipment or technology testing by providing grants of up to $50,000, covering a maximum of 50% of eligible project costs.
SMEs with under 500 employees located within the Northern Development Initiative Trust region are eligible for this opportunity.
The GrantMatch Hub offers SMEs curated lists of grants and incentives that match your organization’s unique profile, projects, and needs. Subscribe to the GrantMatch Hub today to uncover personalized grant matches that help SMEs target the best funding opportunities.