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Ontario government grants for businesses: 2025 guide to economic development support

Ontario government grants for businesses: 2025 guide to economic development support

Synopsis
7 Minute Read

Ontario businesses have access to a wide range of government grants and funding programs — whether you’re a small manufacturer, rural entrepreneur, or a tech startup. This article summarizes the Ontario government economic development grants and funding programs available in 2025 to help you build resilience, invest in innovation, and expand your operations.

Ontario businesses navigating economic uncertainty, trade disruptions, or planning for growth in 2025 have access to a broad range of government grants and funding programs. Whether you’re a small manufacturer, a rural entrepreneur, or a tech startup, there are targeted supports to help your business build resilience, invest in innovation, and expand your operations.

Below is a breakdown of key Ontario government economic development grants and funding programs available in 2025.

Economic Resilience Immediate Support

Purpose:

Provides immediate financial relief to Ontario businesses facing economic strain due to rising costs and international trade pressures. It includes tax deferrals, Workplace Safety Insurance Board (WSIB) premium rebates, and other liquidity supports to help businesses maintain operations and avoid layoffs.

Who is eligible?

All Ontario employers paying WSIB premiums or provincial taxes. No minimum size or revenue requirements.

How much funding is available?

Support is based on payroll history and tax contributions. No fixed grant size; includes tax deferrals and WSIB rates.

Learn more: https://budget.ontario.ca/2025

Trade-Impacted Communities Program (TICP)

Purpose:

Supports economic recovery and diversification in Ontario communities affected by U.S. trade actions. Funds local projects that create jobs, retrain workers, and help businesses pivot to new markets or industries.

Who is eligible?

Ontario-based for-profit small and medium-sized enterprises (SMEs) in designated trade-impacted areas. No minimum revenue or years in business.

How much funding is available?

  • Stream 1: Up to $500,000 per project.
  • Stream 2: Larger transformational projects (amounts vary).

Learn more: https://www.ontario.ca/page/trade-impacted-communities-program-guidelines

Protecting Ontario Account

Purpose:

Provides liquidity support to businesses directly impacted by U.S. tariffs. Offers a mix of grants, loans, and equity investments to help companies manage rising input costs, lost contracts, and other financial pressures caused by trade disruptions.

Who is eligible?

Ontario-based businesses facing tariff-related disruptions. Specific thresholds pending.

How much funding is available?

Up to $1 billion in immediate relief. Individual business amounts are not yet defined.

Learn more: https://budget.ontario.ca/2025/pdf/2025-ontario-budget-en.pdf

Rural Ontario Development (ROD) Program

Purpose:

Promotes economic growth and infrastructure development in rural Ontario. Funds projects that support local job creation, business expansion, and community revitalization.

Who is eligible?

SMEs in rural-designated areas. Projects must align with economic or infrastructure goals.

How much funding is available?

  • Economic Diversification: Up to $150,000 (50 percent of eligible costs).
  • Strategic Infrastructure: Up to $250,000 (30 percent of eligible costs).

Learn more: https://www.ontario.ca/page/rural-ontario-development-program

Northern Ontario Heritage Fund (NOHFC)

Purpose:

Supports economic development in Northern Ontario by funding projects that create jobs, attract investment, and enhance regional competitiveness. Offers multiple funding streams tailored to business expansion, workforce development, and community enhancement.

Who is eligible?

SMEs in Northern Ontario (postal code eligibility applies). Must contribute 15 percent equity and operate full-time.

How much funding is available?

  • INVEST North: Up to $5 million (grants and loans).
  • People and Talent: Up to $35,000 per job created.

Learn more: https://nohfc.ca/programs

Ontario Together Trade Fund (OTTF)

Purpose:

Helps Ontario SMEs respond to trade-related challenges by reshoring production, diversifying markets, and investing in technology. Supports capital investments that improve competitiveness and reduce reliance on vulnerable supply chains.

Who is eligible?

Ontario-based for-profit corporations with more than three years in business and over five employees (some flexibility). Must show tariff-related impact and invest $200,000 or more.

How much funding is available?

  • Minimum project investment: $200,000. Cost-matched funding (exact percentage varies).

Learn more: https://www.ontario.ca/page/ontario-together-trade-fund

Ontario Made Manufacturing Investment Tax Credit (OMMITC)

Purpose:

Encourages manufacturers to invest in new machinery, equipment, and facilities in Ontario. Aims to strengthen domestic production capacity and support long-term growth in the manufacturing sector.

Who is eligible?

Canadian-controlled private corporations (CCPCs) in Ontario. Investments in Class 53 assets or new facilities.

How much funding is available?

  • 10 to 15 percent refundable tax credit.
  • Maximum: $2 million per year on up to $20 million in investments.

Learn more: https://www.ontario.ca/page/ontario-made-manufacturing-investment-tax-credit

Digitalization Competence Centre (DCC)

Purpose:

Helps Ontario SMEs plan and implement digital transformation strategies. Supports businesses in adopting new technologies, improving operational efficiency, and expanding into digital markets through planning grants and implementation support.

Who is eligible?

  • Digital Modernization and Adoption Plan (DMAP): SMEs with one to 499 employees.
  • Technology Demonstration: SMEs with $500,000+ revenue and completed DMAP.

How much funding is available?

  • DMAP Planning: Up to $15,000.
  • Technology Demonstration: Up to $150,000.

Learn more: https://www.oc-innovation.ca/programs/digitalization-competence-centre/

Venture Ontario Capital Fund Expansion

Purpose:

Expands access to venture capital (VC) for high-growth Ontario startups in sectors such as AI, life sciences, defense, and cybersecurity. Channels public investment through VC firms to accelerate innovation and job creation in strategic industries.

Who is eligible?

  • Indirect: SMEs must receive VC funding from participating funds. No direct application.

How much funding is available?

VC fund investments vary; no fixed amount per business. $90 million total expansion.

Learn more: https://news.ontario.ca/en/release/1000303/new-venture-ontario-fund-drives-economic-growth-and-creation-of-high-value-jobs

Take the next step

Ontario’s 2025 economic development grants offer diverse opportunities for businesses to grow, adapt, and thrive. Whether you're in manufacturing, rural development, or digital innovation, there’s likely a program that fits your needs.

Need help navigating these programs? Contact your local business advisor or economic development office to explore your eligibility and get support with applications.

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