Small Business Funding Essentials: Mastering Grants and Tax Credits in Canada

  • By Nicole Mirabal
    • Oct 05, 2023
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Running a small business in Canada can be an exciting endeavor, but securing funding can be a steep hurdle for many entrepreneurs. Whether you’re just starting or looking to grow, access to capital is crucial for success. In this article, you’ll discover two valuable avenues for small business funding in Canada: government grants and tax credits. These programs can provide crucial financial support to help your business thrive.

Government Grants for Small Businesses

You may have heard of big companies applying to government grants, so you’re likely unsure if a small business like yours can apply. However, you’ll be glad to know that government grants offer vital financial support to businesses of all sizes, including small businesses, regardless of your industry.

With a government grant, you could finance a myriad of essential activities in your business such as ongoing research and development (R&D) projects, employee salaries, and marketing.

Typically, these grants are disbursed through a cost-sharing model, meaning your business would perform the necessary work, and afterward, receive the funds as reimbursement.

Small business funding

Tax Credits for Small Businesses

Tax credits offer an ideal avenue for small businesses to fuel their innovative projects while gaining recognition for their creativity. These credits serve as valuable resources that can significantly enhance your financial standing.

What’s more, there are targeted incentives tailored to boost innovation and research and development (R&D) activities within your specific industry. For example, the most popular tax credit is the Scientific Research and Development Tax Credit (SR&ED). However, specific tax credits also exist for other projects including multimedia development, and IT to name a few.

With their versatility, tax credits empower your business to innovate without constraints, presenting a flexible and effective funding option for small enterprises looking to drive growth and innovation.

How to Apply for Funding as a Small Business?

Applying for either stream of funding can come with its challenges due to the high level of complexity and competitiveness in the system. Not only is it time consuming, but it also requires a keen-eye and industry expertise to succeed and/or receive the amount you are actually entitled to.

For these reasons, an expert consultant may be able to advise you and even apply on your behalf with no upfront cost to you. At Leyton, we support entrepreneurs by offering our funding consulting services through a success-fee basis, meaning you only acquire a fee if your application is successful. Additionally, our experts can not only consult you on eligible grants and tax credits for your business, but they can also advise you on other cash recovery avenues such as sales tax recovery and property tax, increasing your overall cashflow while allowing you to focus on growing your business.

Want to know what it feels like to have the funds to grow your business?


Nicole Mirabal
Nicole Mirabal

Brand Content Specialist

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