A Guide to Government Grants in Ontario

Written for someone about to apply for the first time: what the mechanisms actually are, what eligibility means in practice, what you sign at the end, and where it goes wrong afterwards.

Arrange a Call →

How Programmes WorkEligibilityApplicationsAfter the Award

The word grant covers several different mechanisms with different timing and different paperwork. Working out which one you are dealing with is the first useful step, because it changes everything else.

Who does this work. Lexaltico LLP’s government funding and grants service is led by Mitch Parmasar, who is not a lawyer and does not provide legal advice. Where a matter calls for legal advice — a funding agreement, a governance question, a repayment demand — it is handled by a lawyer at Lexaltico LLP. The firm is responsible for all of the work described on this page.

Quick Answer

How do government grants work in Ontario?

In outline: a programme publishes its eligibility criteria and opens an intake for a fixed period; applicants submit a proposal and a budget; eligibility is assessed first and the proposal second; successful applicants sign a funding or contribution agreement; money arrives either in instalments or as reimbursement of costs already incurred; and the recipient reports on a schedule and keeps records for a period afterwards. Two mechanisms sit outside that pattern — advisor-led innovation funding, which has no deadline, and tax incentives, which are claimed rather than applied for.

Ontario law · Lexaltico LLP, Toronto · introductory call

Arrange a Call

Speak to Us About Government Funding

Tell us briefly what is going on. A lawyer reviews every enquiry and replies within 2 business days.

A lawyer replies within 2 business days. Urgent? Call +1 416 333 6200, answered 24/7. Submitting this form does not create a solicitor-client relationship.

WHAT A GRANT IS

Four Mechanisms, One Word

A grant proper is money given for a purpose and not repaid if the conditions are met. A contribution reimburses a share of eligible costs after they are incurred, which is how most business programmes work. Advisor-led funding, of which NRC IRAP is the main example, has no intake and no deadline; an advisor assesses the business and the project. A tax incentive is claimed through a tax filing, is not competitive, and generally involves an accountant rather than an application.

Establishing which of these you are dealing with settles the questions that follow: whether there is a deadline, whether money arrives before or after you spend it, and what you will have to prove at the end.

ELIGIBILITY

It Is About You, and It Is Assessed First

Eligibility is a set of threshold tests about the applicant rather than the project: legal form, where you are established, size, financial history, and for non-profits the purposes stated in the constituting documents. They are checked before the proposal is read.

That ordering is the single most useful thing to understand about funding. A strong project from an ineligible applicant is not a near miss; it is not assessed. And because almost everything determining eligibility takes weeks to change, the work belongs well before an intake opens.

THE WINDOW

Intakes Are Short and Close Absolutely

Most intakes run for a few weeks, once a year. They close at a stated time on a stated date, frequently noon Eastern for federal programmes and 5:00 p.m. for provincial ones, and there is no discretion to accept a late application.

So plan to a date about a week before the published one. Portals are slowest on the final day, and the failure mode is a document that would not upload.

THE APPLICATION

What You Write Becomes What You Owe

An application is a set of representations that become the terms of the funding. The budget becomes the budget you are held to. The activities become the activities the agreement permits. The outcomes become the outcomes you report against.

This is why writing to impress is a mistake with a long tail. A modest project delivered in full is worth more to your funding history than an ambitious one delivered in part, and funders keep records and read them at your next application.

WHAT YOU SIGN

The Agreement Is the Part to Read

A successful application produces a funding or contribution agreement. It will define what the money may be spent on, set a reporting schedule, require records to be kept for a period and produced on request, give the funder audit rights, say what happens to money left over, say whether the project may change, often address who owns anything created with the funding, and set out when amounts become repayable.

Most of it is standard and not negotiable. Knowing what you have agreed to is not optional even so, and the one thing you cannot do is find out during an audit. Two clauses deserve particular attention: anything about intellectual property, and any request for a personal guarantee.

WHAT GOES WRONG

Four Causes, All Ordinary

Money spent outside the eligible categories. A report filed late or not at all. A change to the project nobody sought approval for. A surplus that was never returned. Those four account for most repayment demands, and none of them looks like misconduct — they look like a competent organisation having a busy year.

All four are preventable by the same unremarkable habit: one file per grant, holding the application, the signed agreement, every approved variation, the invoices and proof of payment, each report as filed, and the correspondence. That file is the difference between an audit that takes an afternoon and one that becomes a dispute.

WHERE A LAWYER HELPS

Which Parts of This Are Legal Work

Finding programmes, assessing fit and writing an application are generally not legal work. What is: whether your constituting documents permit the project and how to amend them; whether the applicant you intend to use is the right legal entity; what a funding agreement actually obliges you to do; an intellectual property clause; a personal guarantee; restricted funds and donor intent; and any demand for repayment.

At Lexaltico the advisory side is led by Mitch Parmasar, who is not a lawyer and does not provide legal advice, and the legal questions are handled by a lawyer at the firm. Fees are quoted and agreed in writing before work begins.

Common Questions

Frequently Asked Questions

How do government grants work in Ontario?

A programme publishes criteria and opens an intake; eligibility is assessed before the proposal; successful applicants sign an agreement; money arrives in instalments or as reimbursement; and the recipient reports and keeps records afterwards.

What is the difference between a grant and a contribution?

A grant is money given for a purpose and not repaid if conditions are met. A contribution reimburses a share of eligible costs after they are incurred, so you spend first.

Do I need to be incorporated?

For most programmes, yes, and for non-profit programmes the purposes in your articles matter as well as the incorporation itself.

How long are intakes open?

Usually a few weeks, once a year, closing at a stated time — often noon Eastern for federal programmes. Late applications are not accepted.

Can I change the project after we are funded?

Only as the agreement allows, and usually with the funder’s written approval. An unapproved change is one of the most common reasons money becomes repayable.

How long do we have to keep the records?

For the period the agreement states, typically years after the project ends, with audit rights lasting as long.

What is the most common mistake?

Treating the agreement as paperwork. Its terms decide what you may spend, what you must report and when money can be demanded back, and they are discovered late by people who did not read it.

Do I need a lawyer to apply for a grant?

Not usually for the application itself. For the constituting documents, the agreement, an intellectual property clause, a personal guarantee or a repayment demand, yes.

Arrange a Call

Talk to Us About Applying for Funding

Our lawyers offer an introductory call for most matters. Call, email, or book online. Do not sign anything before speaking with us.

Your name

Email address

Phone

Best time to reach you

Briefly, what is happening?

A few questions about your government funding & grants matter optional

None of these are required and your enquiry sends without them. They let the lawyer read your situation before the call rather than during it.

What kind of organisation is it? optional

Where are you with it? optional

Is there an application or response deadline? optionalMost funding programmes close on a fixed date and do not reopen, so tell us any date you have.

Which programme, if you know it? optionalFor example SR&ED, IRAP, CSJ, or an Ontario or municipal grant.

Please do not send confidential documents or details through this form. We will ask for what we need once we have spoken and confirmed we can act for you.

Confidential and no obligation. We reply within 2 business days. You can call +1 416 333 6200 instead if you would rather speak to someone now.

Lexaltico LLP

Downtown Toronto

55 University Ave, Suite 1100
Toronto, ON M5J 2H7

North York

2 Sheppard Ave East, Suite 303, Toronto, ON M2N 5Y7

Phone

+1 416 333 6200

Hours

Monday to Friday: 9:00 AM to 5:00 PM
Evenings & weekends by appointment

Call to Discuss Your Matter →

Related Corporate & Business Law Pages & Guides

Corporate Law Overview Incorporation Lawyer Corporate Governance Employment Agreements for Employers Contact Lexaltico LLP

Arrange a Call

Ready to Talk? Arrange a Call

No obligation. We will tell you honestly whether we can help, and what it would cost, before you commit to anything.

A lawyer replies within 2 business days. Urgent? Call +1 416 333 6200, answered 24/7. Submitting this form does not create a solicitor-client relationship.

Arrange a Call

Call Message