Ontario boasts the largest provincial economy in Canada, and with that comes a wide array of government grants, tax credits, and non-dilutive financing options for business owners. Whether you are launching a main-street retail startup in Toronto, scaling an automotive manufacturing facility in Windsor, or coding software in Waterloo, there are active funding programs designed to offset your capital requirements.
However, navigating the Ontario funding landscape can be challenging. Because programs are split across municipal Enterprise Centres, provincial ministries, and federal development agencies, many business owners apply to the wrong programs or miss crucial application windows. This guide outlines the major provincial programs, local starter grants, tax incentives, and federal programs available to Ontario businesses.
Top Provincial Grants in Ontario
Starter Company Plus
Up to $5,000Administered through local Small Business Enterprise Centres (SBECs) across Ontario, this program provides training, mentorship, and a micro-grant of up to $5,000 for entrepreneurs starting, growing, or buying a small business. Applicants must complete a training program and submit a viable business plan.
Summer Company
Up to $3,000A specialized provincial program for students aged 15 to 29 who want to start a business over the summer. It provides a grant of up to $3,000 along with business training and mentorship from local enterprise experts.
Eastern & Southwestern Ontario Development Funds
$25K–$1MEODF and SWOF support business expansion, investment in new equipment, and job creation in Eastern and Southwestern Ontario. The programs cover up to 15% of eligible project costs. Projects must involve capital investment of at least $100,000 (for rural areas) or $500,000 (for urban areas) and create a minimum number of full-time jobs.
Ontario Digital Main Street
$2,500Designed to help traditional brick-and-mortar small businesses adopt digital technologies. The Digital Transformation Grant (DTG) provides a $2,500 micro-grant to fund website development, social media campaigns, SEO optimization, or digital inventory management.
Ontario Innovation Tax Credits (OITC & ORDTC)
In addition to direct cash grants, Ontario offers robust tax incentives that stack on top of the federal SR&ED program:
Ontario Innovation Tax Credit (OITC)
An **8% refundable corporate tax credit** for small to medium-sized corporations performing qualifying R&D in Ontario. The credit is calculated on the same expenditure base as the federal SR&ED program, allowing you to recover extra cash.
Ontario Research & Development Tax Credit (ORDTC)
A **3.5% non-refundable credit** for corporations of any size performing eligible R&D work in Ontario. Unlike the OITC, it cannot be refunded as cash, but it can be carried forward to reduce provincial corporate tax in future fiscal years.
Federal Support Programs for Ontario Businesses
Most Ontario businesses stack provincial support with major federal programs. These include:
- NRC IRAP: Provides wage subsidies of $50,000 to $500,000+ for commercializing innovative technologies.
- SR&ED: Up to a 35% refundable tax credit on R&D expenses. Stacks directly with the Ontario OITC for an effective rate of over 43%.
- CSBFP: Government-backed business loans of up to $1.15 million with an 85% government guarantee, available at all major Canadian banks.
Filing Pitfalls: Sunsetted Ontario Programs
Ontario regularly updates its funding portfolio. A common mistake is attempting to apply for programs that have expired. The Ontario Small Business Support Grant and many other COVID-era relief funds have officially sunset. Ensure you only dedicate resource hours to active, funded provincial programs listed in current registries.
Frequently Asked Questions
What grants are available for Ontario small businesses in 2026?
In 2026, Ontario businesses can access several provincial programs, including Starter Company Plus (up to $5,000), Summer Company (up to $3,000), the Eastern/Southwestern Ontario Development Funds, Digital Main Street, and tax incentives like the Ontario Innovation Tax Credit (OITC). They can also access federal grants like IRAP and SR&ED.
How do I apply for Ontario business grants?
Application processes vary by program. Local programs like Starter Company Plus are administered through regional Small Business Enterprise Centres (SBECs). Larger provincial funds require submitting detailed project applications and financial projections directly to the Ontario Ministry of Economic Development.
Can I combine Ontario and federal grants?
Yes, grant stacking is permitted. You can combine Ontario provincial grants with federal programs like IRAP or SR&ED, provided you do not receive funding exceeding 100% of the project's actual cost, and you properly account for provincial funds on federal tax forms.
Are there grants for Toronto businesses specifically?
Yes. Toronto-based businesses can access municipal programs, local Digital Main Street grants, and local Enterprise Centre support in addition to all provincial and federal funding options.
What is the Ontario Innovation Tax Credit (OITC)?
The OITC is an 8% refundable corporate tax credit for small to medium-sized corporations performing qualifying scientific research and experimental development (SR&ED) in Ontario. It stacks directly on top of the federal 35% SR&ED credit.
Are there grants for women-owned businesses in Ontario?
Yes. Ontario women entrepreneurs can access specialized funding programs via the Federal Women Entrepreneurship Strategy (WES), Futurpreneur, and specialized loan/grant programs from BDC and local credit unions.
How long does Ontario grant approval take?
Approval timelines depend on the program. Small grants like Starter Company Plus take 4 to 8 weeks. Larger capital funds like the Eastern/Southwestern Ontario Development Funds can take 3 to 6 months for a complete review.