Top Canada Business Grants, Loans, Wage Subsidies, and Tax Credits for 2025

Every small business can benefit from additional funding.

In Canada, there are numerous government business grants, loans, wage subsidies, and tax credits to help entrepreneurs grow. 

Determining which opportunity is most relevant to your operations can be overwhelming, but knowing what to look out for and where to look can make all the difference.

Here are our top picks of Canadian business grants, loans, wage subsidies, and tax credits for 2025 to help you out.

Scientific Research & Experimental Development (SR&ED) Tax Incentive Program

‍The Scientific Research & Experimental Development tax incentive is one of the largest Canadian federal government support programs designed to encourage the conduct of research and development in the country.

Eligible businesses can claim a deduction against income or earn an investment tax credit that can be applied against their income tax payable.

In 2024, the program provided approximately $4.2 billion in support of 22,000 businesses, helping drive Canada’s innovation strategy.

‍Who is eligible?

‍Corporations, individuals, trusts, and partnerships that conduct basic research, applied research, and experimental development work in Canada.

To be eligible, the work must aim for technological advancement through systematic investigations or experiments. Even if the project doesn’t succeed, as long as it generates new knowledge, it could still qualify. 

‍Why we think this program is relevant: The SR&ED tax incentive helps businesses offset the high costs of conducting research and development. This is especially valuable for small businesses looking to reduce the financial risks involved in R&D. 

By boosting support for innovation, the program enables small businesses to bring in new products and processes to the market.

‍Learn more about the SR&ED tax incentive here.

‍Industrial Research Assistance Program (IRAP)

‍The Industrial Research Assistance Program is another program that helps small to medium sized businesses bring new ideas to the market. There are two relevant support available for eligible businesses:

‍IRAP Financial Assistance

‍The Industrial Research Assistance Program provides funding to support research and development projects at various stages of the innovation cycle. With a non-repayable contribution up to a maximum of $10 million, businesses can adopt or adapt new or improved technologies at any stage of their R&D efforts.

‍Who is eligible?

‍To be eligible for financial assistance, your business should:

1. Be an incorporated, profit-oriented small or medium-sized business in Canada
2. Have 500 or fewer full-time equivalent employees
3. Plan to pursue growth and profit by developing and commercializing innovative, technology-driven new or improved products, services or processes in Canada

‍Why we think this program is relevant: The Industrial Research Assistance Program provides not only funding but advice and connections to help Canadian businesses pursue technology-driven innovation. By utilizing this program, businesses can get access to the resources they need to accelerate their R&D, reduce risks, and boost their competitiveness.

‍IRAP Youth Employment Program

‍In addition to funding research and development efforts, the Industrial Research Assistance Program offers financial assistance through the Youth Employment Program to offset the cost of hiring talent to work on projects with research and development, engineering, multimedia, or market analysis components or to help develop new products or processes.

Eligible applicants can get financial assistance to cover the cost of hiring post-secondary graduates for 6 to 12 months.

‍Who is eligible?

‍To be eligible for the Youth Employment Program, the business must be:

1. A small or medium-sized business
2. Incorporated and for-profit
3. Ready to enhance its innovation capacity
4. Willing to partner with NRC IRAP

‍Who can be hired under this program?

‍The candidate must be:

1. 15 to 30 years old at the start of the internship
2. A post-secondary graduate
3. A Canadian citizen, permanent resident of Canada or person granted refugee status in Canada
4. Legally entitled to work according to the relevant provincial legislation and regulations
5. A first-time participant in a Youth Employment and Skills Strategy work experience program targeted at post-secondary graduates

‍Learn more about the Industrial Research Assistance Program through its official website here.

‍Student Work Placement Program

‍The Student Work Placement Program provides wage subsidies to employers across Canada looking to hire post-secondary STEM (science, technology, engineering, or math) interns.

Employers could get up to $5,000 for every student hired through the program or $7,000 for every student hired that is in their first year or is from an under-represented group.

‍Who is eligible?The program is accessible through Employer Delivery Partners that represent multiple industries. To determine your eligibility, visit the program website here.

‍Why we think this program is relevant: This program is a good way for employers to tap into fresh talent and new perspectives. The program makes it easier for employers to hire post-secondary STEM students while providing valuable work experience and contributing to the development of a skilled workforce.

‍Canada Small Business Financing Program

‍For businesses looking to get more funding, the Canadian Small Business Financing Program (CSBFP) makes it easier for small businesses to get loans they need to grow and expand. By sharing the risk with lenders, the program makes it easier for businesses to secure loans for critical investments like property, equipment, working capital, and more. 

‍Who is eligible?

‍Start-ups or small businesses with gross annual revenues under $10 million.

‍Why we think this is relevant: This program provides an accessible way for businesses to obtain the financial support needed to ensure growth, increase capacity, and stay competitive in the market. It’s a viable option for businesses planning to expand their operations with less financial risk.

‍Canada Job Grant

‍The Canada Job Grant provides funding toward the cost of training provided by eligible third-party trainers. This innovative way of delivering training aims to create jobs and increase skilled workers.

The government provides two-thirds of the cost of training, up to a maximum of $10,000 per grant.

‍Who is eligible?

‍All businesses, including not-for-profit organizations, in all industries are eligible to apply. However, as this program maintains separate provincial streams for each province and territory, eligibility criteria and funding amounts may vary.

‍Where to find Canada business grants

‍Additional funding – especially non-repayable ones, can be a game changer for any business. Thus, knowing where to find available funding is an important knowledge to have.

There are several online databases online, some maintained by the government itself, to help you browse all open Canadian grants, loans, tax credits, wage subsidies, and more. However, going through these databases can be time-consuming and overwhelming.

To streamline the grant search process, platforms like GrantFundPro offer AI-powered search features to help match your business to Canadian business grants compatible with your needs. Learn more and get your 30-day free trial.