Scaling a business often means making big investments in equipment, technology, or new markets. Traditional loans can put pressure on cash flow, and grants are rare at this stage. The Business Scale-up and Productivity (BSP) program offers interest-free repayable funding to help high-growth Prairie businesses expand without paying interest to a lender.
If you operate in Western Canada and are planning a major scale-up, BSP could be a fit — but it isn’t right for every business.
The Business Scale-up and Productivity (BSP) program is delivered by Prairies Economic Development Canada (PrairiesCan). It supports high-growth incorporated businesses in Alberta, Saskatchewan, and Manitoba that are scaling up or improving productivity through major projects.
Unlike a traditional grant, BSP provides interest-free repayable contributions. You receive government funding upfront, then repay the principal over time under agreed terms.
Key features of BSP funding:
BSP targets a specific type of business. You are more likely to qualify if your company already has traction and revenue.
To be eligible, your business must:
Early-stage startups, sole proprietors, and lifestyle businesses are generally not a fit for BSP.
PrairiesCan does not publish a fixed maximum for BSP funding. Contributions are project-based and typically support large, capital-intensive initiatives.
Funding amounts depend on:
In practice, BSP funding is often six or seven figures, making it one of the more substantial federal programs available to Prairie SMEs scaling up.
BSP is designed for growth projects, not day-to-day operations.
Eligible costs commonly include:
Ineligible costs may include:
If you’re unsure whether your expenses qualify, tools like GrantHub’s eligibility matcher can help you filter programs by project type, province, and cost category in seconds.
BSP is not a grant and not a bank loan.
It is an interest-free repayable contribution, meaning:
This structure reduces financing costs while still requiring financial discipline.
BSP does not use a simple online application.
The process usually involves:
Expect a relationship-driven process with detailed financial and impact analysis.
Assuming BSP is free money
BSP must be repaid. Weak cash flow projections are a red flag.
Applying too early
Pre-revenue or early startups rarely qualify.
Underestimating documentation
PrairiesCan expects strong financials and detailed project plans.
Ignoring repayable funding fit
If repayment would strain your business, BSP may not be the right option.
Q: Do you have to repay Business Scale-up and Productivity funding?
Yes. BSP provides interest-free repayable contributions. You repay the principal under agreed terms.
Q: Is BSP funding interest-free?
Yes. No interest is charged, which lowers the total cost compared to traditional loans.
Q: Is BSP only for technology companies?
No. BSP supports innovative businesses across sectors, as long as the project improves productivity or scale.
Q: Can startups apply for BSP?
Most early-stage startups are not competitive. BSP targets established, high-growth companies.
Q: Is there a deadline to apply?
BSP accepts expressions of interest on an ongoing basis, subject to funding availability.
GrantHub tracks hundreds of active grant and repayable funding programs across Canada — including BSP and similar scale-up options — to help you see what matches your business profile.
The Business Scale-up and Productivity (BSP) program could be a good fit if your Prairie-based business is ready for major expansion and able to handle repayment. The key is knowing whether your project, timing, and finances align.
You can use GrantHub to compare BSP with other federal and regional programs and find funding that fits your growth plans.
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