With the end of the federal fiscal year in March, Canada’s 2022 budget is announced to set the stage for the coming year. Through the budget, we can get a sense of the government’s priorities and gain insights into the support that’s available for small businesses in Canada for 2022.
An important piece of the budget puzzle, and what we have our eyes on, is grant funding. Canadian government grant programs reflect the goals and aspirations of an administration. Let’s take a look at what this year’s budget means for SMEs!
Transitioning from COVID relief funding
In 2020, grant programs shifted to an emergency response structure to help small businesses cope with the impacts of COVID-19. New programs such as the Canada emergency wage subsidy (CEWS) were launched, and many existing programs increased their funding ratios to offer more support for SMEs affected by the pandemic.
Thanks to its COVID support measures, Canada has recovered very well compared to other G7 countries, with 112% of jobs regained since March 2020. Two years later, Budget 2022 signals a transition away from emergency response to stimulus funding as the government looks to diversify Canada’s economy by growing key sectors, kickstarting innovation, and stimulating international competitiveness with grants.
Highlights from Canada’s 2022 budget
Canada’s federal budget tells us where the government wants to see the economy flourish, and where the priorities lie. We have put together some key highlights from the budget including some notable grant programs to keep an eye on in 2022.
Green economy and climate change goals
Budget 2022 includes new grant programs and policies designed to help Canada meet its climate action targets, achieve its commitments under the Paris Agreement, and reach the goal of net-zero by 2050.
There are various new grant programs to do so, including:
- $15 billion over 5 years to the Canada Growth Fund
- $2.6 billion over 5 years for a carbon capture utilization and storage tax credit
- $780 million over 5 years to the Nature Smart Climate Solutions Fund
- $329.4 million to the Agricultural Clean Technology Program
Notably, the budget promises $1.7 billion over 5 years to incentivize the purchase of zero-emission vehicles, unveiling incentives for individuals and businesses alike.
These are just a few of the programs launching this year. For a complete list of the new grant programs for 2022, check out the government’s budget announcement.
To support reconciliation efforts with Indigenous communities across Canada, the federal budget promises funding through multiple channels, totalling $10.6 billion in support funding. Under this is a myriad of new grant programs that will help Indigenous businesses hire, train, and expand, including:
- $190.5 million for the Indigenous Community Support Fund
- $20 million over 2 years to establish a new Indigenous Tourism Fund
- Forgiving up to 50% of COVID-Indigenous Business Initiative loans
Are you an indigenous business owner? Our proprietary grant recommendation software GetGranted can show you exactly which government grants you could qualify for!
Growing key industries
Budget 2022 favours several sectors with large injections of funds for small businesses, indicating the key role these sectors will play in Canada’s economic recovery. Stimulus funding—some of it in the form of grant programs—will advance innovation and global competitiveness, building on our strong pandemic recovery.
The top industries of focus in the federal 2022 budget include:
- Digital technology
- Research and development
Are you a business owner in one of these industries? Our specialized Grant Strategists can help you access new programs to help you grow your business! For some tips and tricks, check out our article on our top strategies to secure Canadian government business grants.
What does the federal budget mean for small businesses?
Changes in federal spending can be alarming for small businesses, particularly as we move away from the COVID-19 funding structure. But not to worry! The budget serves to support Canadian organizations with new grant programs, but this doesn’t mean existing business grant programs are disappearing. It’s difficult to keep track of what funding is available in the midst of these changes – and that’s where we come in.
At Granted Consulting, the federal budget announcement is one of many things that our Grant Angels consider when we create your custom grant strategy that reflects your business’s goals as you look to train, hire, and expand.
To get connected with one of our Grant Strategists, fill out our Grant Calculator to find out how much government grant funding your business could qualify for, and how we can support your growth as we dive into the 2022 fiscal year!