Funding glossary

The words funders use, in plain language. A program’s own rules always decide what a word means for that program.

Applicant guide: The funder’s document that sets out who qualifies, what it pays for and how applications are scored. Read it before you write anything.
Business number: The number the Canada Revenue Agency gives a business or organization. Most applications ask for it.
Claim: Your request to be paid for costs you have already spent, with receipts and proof of payment. Many programs pay this way rather than up front.
Community foundation: A charity that pools donations and gives grants in its city or region. Most fund registered charities and other qualified donees for community projects.
Continuous intake: A program that takes applications all year, with no fixed deadline. It can still stop early when its budget is spent.
Contribution agreement: The contract you sign once you are approved. It sets the amount, the eligible costs, the dates, how you claim and what you report. Read it before you sign.
Cost-sharing: The funder pays part of an eligible cost and you pay the rest. A program’s share is usually stated as a portion of eligible costs, up to a cap.
Crown corporation: A company owned by a government that runs at arm’s length, such as a public lender or a utility. Many offer loans, rebates or advice.
Delivery partner: An organization that runs a program on a government’s behalf, such as a local business centre or an industry association. You apply to the partner, not the government.
Eligible costs: The expenses a program will pay toward. Anything else, even if it’s part of the project, comes out of your own pocket.
Expression of interest: A short first step some programs ask for before a full application. If it fits, you are invited to apply in full.
Final report: What you tell the funder when the project ends: what you did, what it cost and what came of it. It often releases the last payment.
First come, first served: Applications are assessed in the order they arrive until the money runs out. The deadline matters less than applying early.
Grant: Money you don’t pay back, given for a set purpose. You usually have to spend it on the costs the funder agreed to and report on what you did with it.
Holdback: Part of the funding kept back until you file your final report. Plan your cash flow so you can wait for it.
In-kind contribution: Goods, services or volunteer time given to a project instead of cash. Some programs count it toward your share; many don’t.
Incorporated business: A business registered as a corporation, federally or in a province. Some programs accept only corporations; others also take sole proprietors and partnerships.
Intake: A window when a program accepts applications, with an opening and a closing date. Some programs have one intake a year; others have several.
Loan: Money you borrow and repay with interest. Public lenders and some programs offer loans to businesses that banks may turn down, such as start-ups.
Matching funds: Money you or another partner put into the project alongside the funder’s. Some programs ask for proof that your share is in place before they approve.
Non-profit organization: An organization that doesn’t operate for profit, incorporated or not. Not every non-profit is a registered charity, and some programs need one or the other.
Qualified donee: An organization that can issue tax receipts and receive gifts from registered charities, such as a registered charity or a municipality. Foundations often require it.
Rebate: Money back after you buy or install something that qualifies, such as an energy-saving upgrade. Many rebates need pre-approval, an approved contractor or an assessment first.
Refundable tax credit: A tax credit that is paid to you even when it is more than the tax you owe. A non-refundable credit can only bring your tax down to zero.
Regional development agency: A federal agency that funds businesses and communities in one region of Canada, such as PacifiCan in British Columbia or FedDev Ontario in southern Ontario.
Registered charity: A charity registered with the Canada Revenue Agency, which can issue tax receipts for donations. Many foundations fund only registered charities or other qualified donees.
Repayable contribution: Funding you pay back over time, often with no interest and with repayments that start after the project ends. Many regional development programs fund businesses this way.
Retroactive costs: Money spent before a program approved your project. Most programs don’t cover it, so apply before you spend.
Set aside for: A program reserved for one group, such as women, Indigenous or Black entrepreneurs. You still apply as a business, and the program says how it defines ownership.
SME: Small and medium-sized enterprise. Each program sets its own limit by employees or revenue, so check its definition rather than assuming.
Sole proprietor: A business owned by one person and not incorporated. Check each program: some fund sole proprietors, and some don’t.
Stacking: Using more than one program for the same project. Programs often limit how much public money one project can get in total, and ask you to list your other funding.
Tax credit: An amount that lowers the tax you owe, claimed on your tax return for costs you already had. You don’t apply in advance; you keep records and claim.
Wage subsidy: A program that pays part of a new employee’s wages for a set time. Most must approve the job before the person starts.

This article explains how funding generally works. Each program sets its own rules, amounts and dates: check the program page and the funder’s site before you apply.

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