TLDR
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Governments use grants to spark business investment and address economic priorities
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There are thousands of funding programs, but many businesses don’t know which ones apply to them
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Clear investment goals and right-sized applications improve the chances of success
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The strongest results come when grants are integrated early into business planning
Every dollar counts. Whether you’re growing your team, launching a new product line or investing in tools to scale your operations, that reality is front and centre for Canadian business owners – especially in an uncertain economic environment.
The 2025 federal budget introduced a suite of new funding programs designed to fuel innovation, growth and competitiveness. The challenge? The grant landscape can be complex. Programs change, eligibility shifts and navigating the process can be overwhelming. But with the right information and the right partners, tapping into these funding opportunities can become far more accessible – and far more useful.
That’s why RBC hosted the webinar “Exploring Grants and Government Funding for Your Business in 2026,” bringing in experts Mike Janke and Gibson Ingram from GrantMatch to share practical insights and answer business owner questions. The GrantMatch team has helped hundreds of organizations secure government funding and specializes in helping businesses identify and navigate relevant programs.
The five steps below, drawn from that conversation, offer a practical framework to help business owners approach grants more strategically and use them to support long-term growth.
Watch the webinar replay.
Password: RBCsmallbiz
Step 1: Assess what grants are available to your business
Government grants exist for a reason. They’re designed to respond to economic pressures and guide business activity in areas the government want to encourage.
As Ingram explained: “Governments use grants to shape the direction of business. When there are certain practices they want to encourage, grant programs help businesses make social, economic or environmental decisions that move the economy in the right direction.”
As he noted, the country has seen this before. During the pandemic, programs like the Canada Digital Adoption Program helped businesses adapt quickly. Today, new funding is emerging in response to challenges such as tariffs, supply chain disruptions and global competitiveness.
However, funding opportunities aren’t limited to select high-profile initiatives.
“There are thousands of programs available in Canada at all levels of government,” Ingram noted. “But they’re not always widely available, and it’s not a one-size-fits-all approach.”
Grants can be:
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Industry specific
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Regionally focused
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Targeted to business size, structure or stage of growth
As eligibility varies, often depending on factors such as location, sector and number of employees, many businesses don’t pursue funding at all. As the GrantMatch team noted, more than half of businesses aren’t aware of the government funding programs available to them. And among those who are? Many never apply, given the perceived complexity of the process and landscape.
To make this first step easier, tools such as the RBC Funding Assessment Strategy Tool (F.A.S.T.) can help businesses see which programs may be relevant based on basic business information.
Powered by GrantMatch, F.A.S.T. pulls from a database of over 12,000 funding programs to match businesses with opportunities, then generates an instant report outlining applicable incentives, objectives, deadlines and costs.
RBC business clients get free and exclusive access to F.A.S.T., as well as preferred pricing for grant writing services and the GrantMatch Hub.
Core insight: Grants are designed to drive specific economic outcomes. Understanding those goals can help you identify which opportunities may apply to your business.
For a deeper look at specific programs outlined in the 2025 federal budget, read our article “The 2025 Canadian Budget: An Essential Guide to Grants and Funding for Businesses.” You can also visit the Government of Canada web site for more information on these grants.
Step 2: Define the project you’re seeking funding for
Understanding what grants are designed to support – and what they’re not – is a critical next step.
Grants are meant to support investment and growth, not day-to-day operations. They’re most effective when used to de-risk strategic decisions, such as hiring, training, expansion or capital investment.
“It’s a good idea to think about grants as more of an investment rather than a way to cover costs,” Janke explained. “The government isn’t going to incentive you for doing something you’re already doing.”
In practice, that means grants are more likely to support:
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Hiring and training new employees
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Equipment or technology purchases
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Expansion projects
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Entering new markets
And they’re far less likely to cover general operating expenses or ongoing payroll costs.
What’s also important to note is that framing is key. Since grants are aligned with government priorities, clearly defining what your grant is for and why it matters can make a meaningful difference later in the process.
Core insight: Instead of asking, “Can I get a grant for my business?” the more effective question is, “Which upcoming investment could a grant help make viable?”
Step 3: Choose the right size and type of grant for your business
Starting in the right place can significantly improve your odds of success.
“If you have a million-dollar business, don’t apply for a $10 million grant,” Janke advised. “Your probability of success will be pretty low.”
Large grants often require management capacity, matching funds and administrative resources that small businesses simply don’t have. A more effective approach is to start with grants that match your size and stage.
For example:
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First-time applicants may start with employment grants, co-op student programs or training incentives
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Growing businesses might explore equipment purchases or expansion projects
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More established companies may be better positioned for larger capital grants, R&D funding or market expansion programs
Starting small can help businesses build experience, documentation and credibility over time.
“Stay in your lane and don’t bite off more than you can chew,” Janke added.
Core insight: Right-sized grants can build momentum. Overreaching can stall progress before it starts.
Step 4: Write a strong, competitive grant application
A strong application starts with preparation. Businesses that are “shovel-ready,” with financial statements, incorporation documents and a clearly defined project, are better positioned to move quickly when programs open.
Timing also matters. Some grants are first-come, first-served, while others are competitive and evaluated against other applicants.
“Sometimes it’s a race,” Janke said. “Sometimes it’s competitive, where they compare applications side by side.”
Understanding how a program evaluates applications can be just as important as meeting eligibility criteria.
“You may want to strip your project down and just present the core costs that are needed to fund it, so your application can be more attractive than your competitor.”
Thinking like a reviewer, including asking yourself why your project should be funded over another, can help sharpen your application and improve your outcome.
Core insight: The strongest applications are clear, focused and aligned with how funding decisions are actually made.
Step 5: Integrate grants into your business planning
Grants tend to deliver the most value for businesses when they’re considered early – before decisions are finalized and costs incurred.
“The best way to think about grants is as a proactive funding solution,” Ingram explained. “It’s something that’s forward-looking.”
Rather than treating grants as an afterthought, businesses can view them as one part of a broader funding mix that may include cash and financing.
“When you’re trying to make that pivotal decision as a business owner, that’s when you look at government incentives,” said Janke. “They can help shape business decisions and fuel growth.”
Used this way, grants can change the dynamics of a business case, making projects more viable and opening doors to opportunities that might otherwise be delayed.
Core insight: Grants are most powerful when they’re built into business planning – not layered in afterward. Take some time to review and update your business plan.
Putting grants to work in your business
Grant opportunities will continue to evolve in response to economic conditions and policy priorities. Staying informed – and approaching funding strategically – can help business owners make the most of what’s available.
For RBC clients, tools like F.A.S.T. or ongoing monitoring services can help keep funding opportunities on the radar throughout the year, without turning grant research into a full-time job.
Ready to see what grants your business may be eligible for?
For RBC Clients: Try the Funding Assessment Strategy Tool (F.A.S.T.), available to RBC business clients through RBC Beyond Banking.
Canadian businesses can stay informed as programs open throughout the year ongoing grant monitoring options through the GrantMatch Hub.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
