Active Federal Funding Programs for 2025
CanExport SMEs: International Market Expansion
Status: Currently open for 2025-2026 fiscal year (closed May 31, 2025 for current intake; check website for next opening)
What it offers: Up to $50,000 (covering 50% of eligible costs) to help SMEs enter new international markets and covers digital marketing expenses for international expansion, including:
- Online advertising on social media platforms and search engines
- Search engine optimization for target markets
- Website adaptation for specific international markets
- Translation and localization of marketing materials
- Virtual trade show participation
- Market research and feasibility studies
Eligibility snapshot:
- For-profit Canadian entity with active CRA business number
- Annual revenue between $100,000 and $100 million
- Fewer than 500 full-time employees
- Targeting markets where you currently have less than 10% revenue
Strategic application tip: CanExport evaluates projects based on potential impact—new leads, sales increases, job creation. Your application needs to demonstrate clear ROI projections and a concrete action plan, not just aspirational goals.
NRC IRAP: Innovation & Technology Development
Status: Ongoing (operates on government fiscal year: April 1 – March 31)
What it offers:
- Small projects: Up to $50,000 (Accelerated Review Process)
- Mid-sized projects: $300,000 to $500,000 typically (up to $10 million for very large initiatives)
- Covers up to 80% of direct labor costs and 50% of subcontractor expenses
Why it’s relevant beyond pure tech companies: While IRAP focuses on research and development, many digital marketing and web development projects qualify when they involve:
- Process automation innovation
- Custom software development
- AI/ML implementation
- Novel technical solutions with commercial potential
Eligibility snapshot:
- Incorporated, profit-oriented Canadian SME
- Fewer than 500 full-time employees
- Engaged in technology-driven innovation with clear commercialization path
Key differentiator: IRAP provides both funding and access to Industrial Technology Advisors (ITAs) who offer strategic guidance. The mentorship component often proves as valuable as the funding itself.
Pro tip: IRAP funding can be stacked with SR&ED tax credits. If you receive an IRAP grant covering 80% of salaries, the remaining costs can still qualify for SR&ED, potentially recovering an additional 60-70% of non-IRAP expenses through tax credits.
Provincial & Sector-Specific Programs
The federal programs get the most attention, but provincial funding can be equally valuable—and often less competitive.
Ontario Digital Resources
Digital Main Street: While the $2,500 transformation grant has limited availability, Ontario continues to offer digital advisory services and training through this program.
Ontario Made Manufacturing Investment Tax Credit: For businesses in manufacturing leveraging digital technologies, this offers significant incentives.
Alberta Digital Economy Programs
Alberta Export Expansion: Offers $1,000 to $15,000 for export marketing activities, including digital campaigns
Interactive Digital Media Grant: Up to $200,000 in matching funds for digital content development
British Columbia
Interactive Digital Media Tax Credit: 17.5% of eligible labor costs for qualifying digital media projects
What Businesses Actually Need to Secure Funding
Research shows successful applications share common characteristics:
Clear Financial Stability: Programs require proof you can cover the non-funded portion. QuickBooks records, financial statements, and tax filings need to be current and clean.
Quantified Business Case: Vague objectives fail. Successful applications include specific metrics: “Increase European market revenue from $0 to $150K within 12 months” beats “expand internationally.”
Technical Credibility: For innovation-focused programs like IRAP, demonstrating technical capability and competitive advantage is essential. Your background and team composition matter.
Market Validation: Grant reviewers want evidence of demand. Letters of intent, pilot project results, or existing traction significantly strengthen applications.
Realistic Timelines: Most programs operate on fiscal year constraints. Projects need completion milestones that align with funding body timelines (typically April 1 – March 31 for federal programs).
The Application Reality: Time Investment vs. Return
Here’s what grant consultants don’t always emphasize upfront: a competitive IRAP or CanExport application requires 40-60 hours of preparation for someone experienced, more for first-timers. This includes:
- Comprehensive market research
- Detailed budget projections
- Technical specifications
- Risk assessments
- Implementation timelines
- Expected outcomes with supporting data
The blind spot: Most businesses underestimate follow-up requirements. Funded projects require regular reporting, expense documentation, and impact measurement. Factor this administrative overhead into your decision-making.
Emerging Opportunities: What’s Coming in 2025-2026
AI-Specific Initiatives: Given the federal government’s AI strategy, expect new programs targeting AI adoption and development. NRC IRAP has already launched AI-specific support streams.
Clean Tech Expansion: Programs supporting businesses implementing environmental technologies or offering sustainable solutions are expanding, with billions allocated through various federal and provincial budgets.
Cybersecurity Funding: As digital threats intensify, funding for cybersecurity infrastructure and services is increasing.
Practical Next Steps
If you’re serious about accessing government funding:
Immediate Actions (This Month):
- Register your business on the My Canada Business Account portal (required for most federal programs)
- Ensure your corporate documents are current (articles of incorporation, tax filings, GST/HST returns)
- Prepare basic financial documentation (revenue statements, balance sheets for past 2-3 years)
Short-term Strategy (Q1 2025):
- Identify 2-3 funding programs aligned with your business priorities
- Connect with an IRAP Industrial Technology Advisor if innovation funding interests you (call 1-877-994-4727)
- Join industry associations that provide grant application support or workshops
- Document your current projects and results to establish baseline metrics
Long-term Positioning (2025-2026):
- Build grant applications into your business development rhythm (quarterly assessment of opportunities)
- Develop templates for common application components (company overview, team bios, financial projections)
- Maintain relationships with funding advisors even when not actively applying
- Track industry trends to anticipate new funding programs before they’re widely known
The Real Conversation About Grant Dependency
Here’s the nuance most grant guides avoid: government funding should accelerate growth, not subsidize unsustainable business models.
The businesses most damaged by CDAP’s closure were those building their entire strategic plan around grant money. The businesses thriving post-CDAP already had viable operations and viewed grants as rocket fuel, not life support.
This distinction matters. Apply for funding to enhance what’s already working, not to validate an unproven concept.
Ready to explore funding for your business? Start with the My Canada Business Account registration and the NRC IRAP eligibility assessment. These cost nothing and open doors to conversations with advisors who can guide your specific situation.
Questions about which programs align with your business goals? The Business Benefits Finder tool (https://innovation.ised-isde.canada.ca/s/?language=en_CA) helps match your situation to available programs—federal, provincial, and sector-specific.
The funding landscape has changed, but strategic opportunities remain abundant for businesses that approach the process intelligently.