Our CEO Stephanie Sang unpacks the recently tabled 2025 Federal Budget through a grant lens. Here’s what’s new, what’s changed since 2024, and where your business could benefit most.

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To improve accessibility and help businesses easily reference key information, we’ve included the full transcript from the 2025 Federal Budget grant insights video below.

Hi, my name is Stephanie Sang, and as CEO of Grant Consulting, I’m excited to share this year’s federal budget key grant insights.

At Granted, we’re constantly tracking government initiatives and mandates so that Canadian small businesses, like yours, don’t have to. After digesting the budget announced on November the 4th, there are some key measures that impact funding, support, and where programs will be directed. If you’re interested in using government grants to help fund your business activities, this recording is for you.

Budget 2025 introduces the Strategic Response Fund, a $5 billion program that’s new. It’s meant to help companies adapt to global trade and tariff pressures. That’s a new line of funding, and it’s not carried over from 2024. It marks a shift towards industrial resilience here in Canada. Look for different types of funding programs, including those that help to retool your projects, perhaps localizing them from afar, including overseas, export diversification to help companies in Canada export to new markets, as well as improving and modernizing manufacturing here in Canada.

The productivity super deduction is one that will vary depending on how much a company invests on capital investments, such as machinery and AI. This replaces a 2024 smaller capital cost allowance and really helps to encourage companies to invest in new markets. It encourages businesses in Canada to invest in Canada. The types of funding programs we expect to see are things associated with automation integration, as well as AI integration and productivity training.

The Clean Tech Manufacturing Investment Tax Credit is one that doesn’t change from last year. It remains at 30% and really helps businesses adopt eco-friendly alternatives when looking at new machinery or trucks, for instance.

The SME Export Readiness Initiative is valued at more than $46 million over the next four years. It will help local businesses build export capacity, particularly to regions that they have not exported to before. We expect that grant programs or funding programs include things like training and consultative services to help businesses understand what is required to export their products abroad. You can also see improved export readiness that will lead to more applications with programs like the CanExport.

SR&ED modernization and IP protection is next on the docket. We are seeing a huge increase of more than 50% on investment on Shred alone. This tax credit enables further research and development in Canada that will then lead to more IP or intellectual property made domestically. Potential funding programs include general increase in interest in Shred, as well as things along the IP route. Things like training, assessment, and preparedness so that companies that are exporting are protected when they go into foreign markets.

The AI assist and infrastructure programs introduced earlier this year will continue. It is expected to help more than 3,000 SMEs adopt AI tools and potentially help with AI readiness, infrastructure support, as well as domestic AI pilot projects that are directed towards helping the government improve inefficiencies.

The workforce and skills program is valued at more than $3 billion. It is meant to help increase the opportunities to bring in foreign talent and ensure that their credentials can convert to Canadian equivalents. There will also be additional funding for AI and skills development to keep industries as well as technology up to par for the Canadian workforce. You can expect things like wage subsidies as well as training funds to land for small businesses across Canada.

Trade Infrastructure and Skills Corridor. The entire infrastructure investment in this program, more than $115 billion, which is an increase of more than $15 billion from the original budgeted amount. This will help to build the infrastructure required as well as construct homes across Canada. The impact that we expect is further regional procurement as well as improve supply chain channels so that our products can be easily sent across the country and into overseas markets.

Buy Canada is an initiative that was announced to offset the impact of tariffs. High Canadian procurement policy is really ideal for Canadian businesses who are interested in selling to the government. There will be billions of dollars in Canadian procurement funding contracts issued to Canadian vendors. Where you would see different grant programs are preparedness for Canadian vendors to be able to sell to the government, as well as certification, particularly in the areas of manufacturing and building.

Youth employment continues to be a key initiative here in Canada. With more than $150 billion tabled in the budget, we expect that this will really help to improve the Canadian youth employment rate. Different types of programs that you will see include the Canada Summer Jobs, which was originally designed for Canadian students, but is now geared towards anyone under the age of 30, as well as SMEs encouraged to hire recent graduates. Are you interested in grants for Canadian businesses? For your business, it’s time to remove that FOMO.

Check out our Grant Calculator and start your funding journey today. Thanks for listening.

Let’s get you funded

At Granted Consulting, we specialize in guiding Canadian companies through the funding process – making it simpler, faster, and far less stressful. Our team can help you access this program and other government funding opportunities so you get the support your business deserves. We stay on top of the ever-changing landscape of grants and funding, so you never miss an opportunity.

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