The 2025 Canadian Budget: An Essential Guide to Grants and Funding for Businesses

The 2025 Canadian Federal Budget introduced several measures to address front-of-mind challenges facing Canadian businesses. Aimed at strengthening the economy, building resilience and boosting Canada’s competitiveness on the world stage, the new and expanded funding programs are designed to help businesses innovate, advance and grow.

Canadian Federal Budget in Brief

The Budget projects a deficit of $78 billion in 2025 – 26, falling to $65.4 billion in 2026 -27 and $56.6 billion by 2029 – 30. Economic growth is expected to remain weak – 1.1% this year and 1.2% in 2026 – well below last year’s forecast, reflecting the impact of tariffs and broader economic uncertainty.

To boost productivity, the government is launching a new industrial strategy focused on large infrastructure projects, public R&D investment, regulatory reform and targeted tax incentives. Over the next five years, more than $1 trillion will be invested, including $315 billion for infrastructure, $210 billion for private R&D, $130 billion for housing, $270 billion for industrial development, $60 billion for depreciation and expensing, and $95 billion for other tax incentives.

Federal Budget Recap from Cynthia Leach, RBC Assistant Chief Economist

Canada’s Budget 2025 has been unveiled and —in four important ways—it was a big one.

1. As expected, there was big new spending with the federal government stepping in to boost weak cyclical and structural economic growth given the risk of frozen private investment.  $177 billion in new spending since last year’s Fall Economic Statement was partially offset by savings meaning a net new $126 billion over five years.

2. Deficits are big. At $78 billion, the current year deficit nearly doubles what was expected last fall. The whole deficit track has been lifted from an average of about 1% of GDP to about 2%. Even though the Budget has a declining deficit trend, there’s no balance in sight. Instead, by 2029-30, the deficit is completely represented by growth-enhancing capital spending, according to the government’s definition.

   As for the debt burden, the debt- to-GDP ratio moves up and then sideways until at least the mid-2030s, before more fiscal pressures are on the horizon.

3. The Budget bets big on sparking $500 billion in private investment. The government says it could materially lift GDP, and in turn, living standards for Canadians. In that case, the deficit picture improves, and debt-to-GDP is set on a downward path.

   Budget measures meaningfully push in this direction, including a higher path for investment-focused spending.  But there’s fair debate about whether it’s ambitious enough or focused enough in the right areas.

4. Execution risk is big. Whether it’s playing out growth or fiscal management strategies, the government is faced with high stakes, and narrow margins.

Read more about it in RBC Economics’ budget analysis.

With new and expanded programs on the horizon, Canadian businesses have an ideal opportunity to assess upcoming projects and position themselves for available funding opportunities.

We asked GrantMatch to share the latest grants now available for Canadian businesses as announced in the November 2025 Canadian Federal Government budget. Bookmark this page: details will be added as more information is released. Visit the Government of Canada web site for more information on these grants.

“Government funding often reflects the country’s broader priorities – from sustainability and workforce development to digital transformation and innovation. Businesses that align their investments with these priorities can not only accelerate their growth but also improve their chances of securing government support.” – Mike Janke, Co-Founder and Managing Partner at GrantMatch

1. Business incentives to grow, export and compete

Programs that help Canadian businesses manage tariffs, access capital and expand into new markets.

Tariff response and financing for businesses

Strategic Response Fund: $5B over six years to assist firms in all sectors and regions impacted by tariffs to adapt, diversify and grow. $1B will be allocated to support the steel industry’s transition. *New program See details

Regional Tariff Response Initiative: Up to $1B in grants and interest-free loans over three years for all affected sectors. *New program See details

Large Enterprise Tariff Loan: $10B facility to support Canadian firms affected by actual or potential tariffs and countermeasures.

Pivot to Grow Program (BDC): A $500M enhancement delivered through the Business Development Bank of Canada for small and medium-sized steel businesses facing liquidity challenges.

Export and market expansion opportunities for Canadian businesses

Trade Impact Program (EDC): $5B over two years to support exports, including credit insurance, export and foreign currency guarantees. Launched through Export Development Canada (EDC).

CanExport Program: $68.5M over four years to assist businesses and associations with export marketing and export business development expenses. *Additional funding added to existing program

SME Export Readiness Initiative: $46.5M over four years to support training for SMEs with limited exporting experience. *New program

Trade Diversification Corridor Fund: $5B over five years to support transportation infrastructure projects to support export diversification.

Tax and R&D incentives for Canadian businesses

Accelerated Investment Incentive: Enhanced first-year write-off for most capital assets. *Re-introduced tax program

Immediate expensing: 100% first-year write off for manufacturing or processing machinery, clean energy generation equipment and zero emission vehicles, as well as productivity-enhancing assets including patents, network infrastructure, computers and capital expenditures for scientific R&D.

Scientific Research and Experimental Development Fund (SR&ED) Enhancements: Increased credit thresholds to 35% and the annual expenditure limit to $6M. The approval process for claims will also be streamlined, cutting the process in half.

Commercial Strategic Sector Development

Defence and Security Business Mobilization Program (BDC): $1B for loans, capital and advisory services for SMEs contributing to Canada’s defence and security capabilities.

Civilian Military Tech Development: $656.9M over five years to support businesses developing and commercializing civilian-military technologies, including aerospace, automotive, marine, AI, biodefence and life sciences.

Venture and Growth Capital Catalyst Initiative (BDC): $1B to launch a new initiative to leverage capital participation and invest in important sectors such as the life sciences.

2. Funding to help Canadian businesses power a clean economy

Funding to help businesses invest in renewable energy, clean technology and critical minerals.

Critical Mineral Sovereign Fund: $2B over five years for strategic investments into critical mineral projects and companies. *New program

First and Last Mile Fund: $371.8M over four years to support the development of critical mineral projects and supply chains. This fund will also absorb the Critical Mineral Infrastructure Fund to leverage funding to $1.5B by 2029-30.

Expanded Critical Mineral Exploration Tax Credit: Now includes an additional 12 critical minerals.

Clean Technology Demonstration Initiative: $39.9M over four years to assist in bringing clean technology to foreign markets.

Clean Economy Investment Tax Credits: Expanded eligibility for Clean Electricity and Carbon Capture, Utilization and Storage (CCUS) credits.

Biofuels Production Incentive: $373M over two years to support domestic producers of biodiesel and renewable energy.

Critical Minerals Processing: $443M over five years to support the development of critical minerals processing technologies and support joint investments with allies in critical minerals to support national security.

3. Funding to help businesses invest in renewable energy, clean technology and critical minerals

Funding to help businesses adopt cutting-edge technology, protect intellectual property and scale globally.

Sovereign Canadian Cloud and AI Infrastructure: $925.6M over five years to support investment in large-scale public AI infrastructure.

IP Assist Program: $75M over three years to help businesses protect and manage their intellectual property.

Elevate IP Program: $84.4M over four years to help innovative firms commercialize their ideas.

Innovation Partnership Program and Canadian Technology Accelerator: $7.6M over four years to support companies’ scale-up exports.

4. Support for Canadian businesses to hire, train and upskill workers

Grants and initiatives to help employers recruit, train and retain skilled workers.

Student Work Placement Program, Canada Summer Jobs and Youth Employment and Skills Strategy: 175,000 placements planned for 2026-2027 with over $1.5B combined funding. *Additional funding added to existing program

Labour Market Development Agreements: $570M over three years for retaining and employment assistance for workers affected by tariffs and global market shifts.

Union Training and Innovation Program: $75M over three years to expand existing programming that supports union-based apprenticeship training.

Foreign Credential Recognition Action Fund: $97M over five years to improve foreign credential recognition, focusing on health and the construction sectors.

New Horizons Seniors Program: $70M annually to fund senior programs in local communities.

5. Business grants to build and strengthen Canadian communities

Funding to help developers, builders and community partners address housing needs and local infrastructure gaps.

Build Canada Homes Agency: $13B allocated over 5 years to build homes directly and attract private builders to expand the housing supply. The focus is on non-market affordable housing, transformational and community housing ($1B) and market-led rental programs ($1.5B through the Canada Rental Protection Fund).

Communities Strong Fund: $51B over ten years to fund a wide range of infrastructure projects for provinces, territories and municipalities.

• $17.2B to be allocated to provinces and territories for housing-enabling infrastructure, hospitals and colleges and universities. 

• $5B of this amount is to be allocated for a Health Infrastructure Fund for health infrastructure.

• $6B to be allocated for a Direct Delivery Stream for regional projects, building retrofits, and community infrastructure.

• $27.8B to be allocated to a Community Stream (rebranded from the Canada Community Building Fund) to support local infrastructure projects.

First Nations Water and Wastewater Enhanced Program: $23B over three years for infrastructure projects.

Arctic Infrastructure Fund: $1B over four years for major transportation projects, including airports, seaports, roads and highways.

Building Communities through Arts and Heritage Program: $21.1M over three years to support local festivals and community projects

Canada Arts Presentation Fund: $46.5M over three years to support art festivals.

6. Incentives for Canadian agriculture, forestry and natural resources

Programs to strengthen rural economies and help producers and resource-based industries innovate and diversify.

Agriculture

AgriStability Program: $109.2M for the cost-shared program with an increase in the compensation rate to 90%.

AgriMarketing Program: $75M over five years to enhance the diversification and promotion of agriculture, agri-food, fish and seafood products to new markets. *Additional program funding

Advance Payments Program: $97.5M over two years to temporarily increase the program to $500K for canola advances and $250K for all producers.

Forestry

Bank of Canada Loan Guarantees: $700M over two years to help the forestry and lumber sectors transform and remain competitive.

Forestry Program Renewal: $500M over three years to renew and expand forestry programs focused on market and product diversification.