New Business Grants Ontario: What Funding Is Actually Available for Startups

By GrantHub Research Team · · Lire en français

New Business Grants Ontario: What Funding Is Actually Available for Startups

Starting a business in Ontario is expensive. Incorporation fees, equipment, marketing, and early payroll add up fast. The good news is that new business grants Ontario entrepreneurs can access do exist, but most are tied to specific programs, regions, or founder profiles rather than being automatic startup cheques.

Ontario’s most consistent entry-level funding programs are run or funded by the province, often delivered through local organizations. Below is a clear breakdown of what’s available in 2025–2026, who qualifies, and how much funding you can realistically expect.


New Business Grants Ontario Entrepreneurs Should Know About

1. Starter Company Plus (Ontario)

Best for: Adults starting a first business or growing a very early-stage one

Starter Company Plus is Ontario’s flagship program for new entrepreneurs. It combines training, mentorship, and a small startup grant.

What you can get

  • Up to $5,000 in grant funding in many Ontario regions
  • Mandatory business training and one-on-one mentorship
  • Ongoing support through a local Small Business Enterprise Centre (SBEC)

Who’s eligible

  • Ontario residents aged 18+
  • Starting a new business or expanding a business less than 5 years old
  • Able to commit time to training and mentorship
  • Not enrolled full-time in school

Funding amounts and intake dates vary by municipality because the program is delivered locally, not centrally.

Tools like GrantHub’s eligibility matcher can help you filter Starter Company Plus locations by city or region in seconds.


2. Summer Company (Ontario)

Best for: Student entrepreneurs aged 15–29

Summer Company is one of the few true new business grants Ontario students can access while still in school.

What you can get

  • Up to $3,000 in startup funding to launch a summer business
  • Mentorship from local business advisors
  • Business skills training before and during the summer

Who’s eligible

  • Ontario resident aged 15–29
  • Returning to school after the summer
  • Not already operating a business
  • Not working more than 12 hours per week during the program

This program is highly structured and competitive, but it remains one of the fastest ways for young founders to test a business idea with low financial risk.


3. Local & Municipal Startup Grants (Ontario-Wide)

Beyond provincial programs, many Ontario cities and regions offer their own new business grants, often stacked on top of Starter Company Plus.

These may include:

  • Microgrants for home-based businesses
  • Grants for rural, northern, or priority communities
  • Sector-specific funding (food, tourism, manufacturing, tech)

Important: These programs are not advertised nationally. They’re usually hosted by:

  • Small Business Enterprise Centres
  • Economic development offices
  • Regional innovation hubs

Grant amounts are typically $1,000–$10,000, depending on region and available budgets.


4. Federal Programs New Ontario Businesses Can Use

While not Ontario-only, several federal programs regularly fund Ontario-based startups, especially innovative or growth-focused businesses.

Examples include:

  • Early-stage innovation and R&D support
  • Wage subsidies tied to hiring
  • Project-based funding delivered through regional agencies

Some federal funding is non-repayable, while other programs use repayable contributions. Eligibility depends on incorporation status, revenue stage, and project scope.

For founders planning growth beyond the first year, these programs often become more relevant than provincial startup grants.


Common Mistakes to Avoid

  1. Assuming all startup funding is automatic
    Most new business grants Ontario offers are competitive and require training, pitching, or milestones.

  2. Missing local deadlines
    Programs like Starter Company Plus run on local intake schedules. Miss one deadline and you may wait months.

  3. Ignoring non-cash requirements
    Many grants require mentorship hours, training sessions, or progress reports. Skipping these can cancel funding.

  4. Only searching Google
    Many municipal grants don’t rank well online. Databases that track active programs save time.


Frequently Asked Questions

Q: Are there grants for brand-new businesses in Ontario?
Yes, but they are program-based. Starter Company Plus and Summer Company are the most consistent options for brand-new businesses with no revenue.

Q: Do I need to be incorporated to get a startup grant?
Not always. Many Ontario startup grants allow sole proprietors at the application stage, but incorporation may be required before funds are released.

Q: Are Ontario startup grants taxable?
In most cases, yes. Grant funding is usually considered business income. Always confirm with an accountant.

Q: Can I combine multiple grants?
Sometimes. Provincial, municipal, and federal programs can often be stacked if rules allow, but you must disclose all funding sources.

Q: Are there grants just for women, newcomers, or Indigenous founders?
Yes. Ontario and federal governments offer targeted programs, but eligibility rules are specific and change often.


Next Steps

Finding the right new business grants Ontario founders actually qualify for depends on your age, location, industry, and growth plans. GrantHub tracks 2,500+ active grant programs across Canada, including provincial, municipal, and federal options — so you can see what matches your business profile without endless searching.

You may also find these helpful:

  • Money From Ontario Government 2025
  • Co‑op Student Funding Ontario
  • Mitacs Grants

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