Grants and Loans Programs in Ontario

October 25, 2021
Leroy Innanen
Blog

In Ontario, there are a number of Grant and Loan Programs available to help you start or grow your business. Grant and Loan Program options vary in terms of funding, eligibility requirements, and interest rates.

In this article we will review the most popular Grant and Loan Programs available in Ontario so that you can make an informed decision on which one is best for you!

What are Grants and Loans

Grants and Loans are financial support options offered by the Government of Canada, Province of Ontario or Municipality and private bodies in order to help individuals start a business.

Grant programs in Ontario focus on providing funding for your project rather than repaying it over time while Loan Programs require repayment at regular intervals with interest rates attached.

The main difference between a loan and a grant is that a loan has to be paid back while a grant does not. Grants typically do not require a repayment schedule or interest rate, but there are limited funding opportunities. Loans typically have less restrictive eligibility requirements and more flexible repayment schedules compared to Grants, but the amount of money you can borrow is usually lower than what you would get from a Grant.

Grant Programs in Ontario

Federal Government Grants

There are a number of federal grants available to help you grow your business. They are awarded to support research, development, and innovation in larger Canadian agriculture, manufacturing, and technology. The federal government uses these grants to encourage businesses to invest in the workforce of tomorrow by supporting training initiatives within certain industries.

The Canada Business Network offers a list of all the federal grants and loans available on their website so that entrepreneurs can easily find out what is offered and apply if they are eligible.

Some federal government grants accessible in Ontario are

Provincial Government Grants

The provincial government offers many grant programs for various industries across Ontario. Funded by the Ministry of Advanced Education and Skills Development (MAESD), grants are awarded to businesses, organizations, and research institutions to encourage economic growth within the province of Ontario. These include:

Grants for training workers
Industrial innovation funding
Support for a skilled workforce
Funding for specific industry sectors
Support for small businesses.

A few provincial grants for Ontario companies are

The Ontario Interactive Digital Media Tax Credit (OIDMTC)

The Ontario Interactive Digital Media Tax Credit is managed by the Ministry of Economic Development and Growth, providing a refundable personal income tax credit to encourage employment and investment in this field. Ontario companies with eligible production costs of $1 million or less may claim up to 40 percent of these expenses under the OIDMTC. Eligible production costs include those for labor and contracted services, such as software development and animation work, along with equipment purchases.

Ontario Production Services Tax Credit (OPSTC)

This credit is available to eligible television or digital media companies that spend at least $50,000 on production services in Ontario. Eligible services include production-related activities for scripted television series, week movies, documentaries, or digital media productions. Rewards are given to companies that spend at least 40 percent of their total shoot days in Ontario.

The Ontario Innovation Demonstration Fund – Industry & Commercialization Stream

This program is also managed by The Ministry of Economic Development and Growth, which provides repayable contributions to private sector businesses who wish to expand their market opportunities by conducting early-stage product development or marketing activities that credible non-profit research institutions have supported. Companies based outside of Ontario must be subsidiaries of an Ontario-based company who will act as the legal applicant.

Private Organizations Grant

Private organizations do offer grants for various social services to support families, children, youth, seniors, indigenous populations, people with disabilities, and unemployed or homeless individuals.

Grants are typically awarded based on the organization’s specific initiatives and goals, but their funds may also be used for broader purposes such as research or community development. Organizations receiving grant money must provide a plan for using the grant to benefit the community.

Private organizations that award grants include; Air Canada, Cascade, Xerox, Maple Leaf Sports, and Entertainment (MLSE).

Loan Programs in Ontario

Federal Loans

Loans are another form of financial assistance offered by the government that provides money to individuals, families, and businesses.

Federal Loans are available for federally regulated industries, including mining, forestry, or petroleum production.

One of the most common requirements for applying is incorporation under federal or provincial laws. The application process may also require an organization to provide supporting documentation about its business and industry.

Business loans may also be available through the federal government, depending on your industry and business structure.

Provincial Loans

Ontario offers its loans programs. to residents within the province. These loans are available to individuals or businesses for specific purposes such as students, payday loans , home renovations, and small business. Loans are typically offered through the Ontario Student Assistance Program (OSAP) and similar programs.

Personal loans

These loans involve borrowing money from a financial institution such as a bank or credit union to help pay for costs such as home renovations or consolidating debts.

Personal loans are commonly used to finance home renovations, furnishings, and automobiles and consolidate debts with higher interest rates.

The majority of personal loans are between $100 and $50,000, with terms ranging from 6 to 60 months.

How to apply for a grant or loan

Applicants may apply for a government loan or grant through their local ministry, department, agency, or other provincial office. Contact your local municipality for more information about business and personal loan programs. For federal and provincial grants, you can contact the Ontario Ministry of Advanced Education and Skills Development and/or Canada Small Business Financing Program.

In order to receive federal loans and grants from the Government of Canada that are not based on financial need, you must be incorporated under an Act of Parliament into a federally regulated industry.

It is important to carefully read the eligibility criteria of each program before applying. It’s also critical to have your credit report prepared when applying for a loan or grant in Canada’s provinces since it will show your credit history and score.

This credit score will help lenders determine if you are eligible for a loan or grant or how large a loan or grant you may receive.

Companies that can help you find grants and loans in Ontario

There are several companies that can help you find a grant or loan in Ontario. For example, Canada’s Government Grants and Loans directory offers an extensive list of financing programs available from all levels of government across the country.

There are also companies that can help you find grants and loans in Ontario. A few companies are discussed below.

Mentorworks

Mentorworks is a website that offers free information on finding grants and loans. The site also provides an extensive list of other resources for various types of business financing, including provincial funds to help small businesses in Ontario grow their operations.

Fair Grants

Fair Grants and Loans Canada is a website with information about loans and grants for students, immigrants, small businesses, seniors’ homes, individuals in financial need, as well as those living on Indian Reserves. The site offers an extensive list of government sponsored loan programs across the country (including Ontario).

Borrowell

Borrowell is a financial services company that compares personal loans providers. The platform works with over 50 Canadian financial partners to discover loans that fit users. It also allows users to conduct free credit scores, and see odds of getting approved for different types of loans.

LoansCanada

LoansCanada is a company that offers personalized loan services for individuals and businesses. Loans Canada specializes in providing loans to help people consolidate their debts, buy cars, pay off credit cards, make home renovations or start new business ventures.

Conclusion

Grant and Loan Programs in Ontario are great opportunities to help your business flourish. When you have an idea for a new venture but lack the capital, these programs can bridge that gap between where you are now and where you want to be. Please do not hesitate to get in touch with me if you have any queries regarding this blog or if you want to talk about it in further depth.