How to tell if you qualify for a grant: reading eligibility rules

To tell if you qualify for a grant, read the program's eligibility rules in order: who can apply, where you have to be, what size and sector the program serves, what kind of project it funds and which costs it covers. If you fail any rule that says "must", you don't qualify; rules that say "may" leave the decision to the funder. When a rule is unclear, ask the funder before you spend time on an application.

Eligibility rules can look dense, but most programs follow the same pattern. This guide walks through each part, explains the words that trip people up and shows how CanGrant presents rules so you can check them quickly.

Where do you find a program's eligibility rules?

Most programs publish their rules in a few places:

The program page on the funder's website, usually with a short "Who can apply" section.
The applicant guide, sometimes called program guidelines or a funding guide. This is the detailed version, and it usually wins if the two disagree.
The application form itself, which often repeats key rules as questions.
An FAQ page, which can clear up edge cases.

On CanGrant, each program page has a section called "Who qualifies, in the funder's words". Each rule is written in plain language, with the funder's exact words underneath and a link to where they came from. We only show a quote once it has been found word for word on the funder's page, and we take a rule down if the funder changes it until it is checked again. Treat our summary as a starting point and the funder's guide as the final word.

Who can apply? Checking the applicant type

The first rule is almost always about what kind of applicant you are. Programs are written for specific types, and the wording matters:

Businesses. Some programs require an incorporated company. Others also accept a sole proprietor or partnership. If a program says "corporation", a sole proprietorship usually doesn't count.
Non-profits and charities. A non-profit and a registered charity are not the same thing. Some foundations can only give to qualified donees, which most non-profits are not.
Individuals. Some programs, such as many home energy rebates, are for people rather than organizations, often homeowners.
Municipalities, First Nations, schools or associations, each of which may have their own programs.

Many programs also ask for a business number, a minimum time in operation or proof of registration. If your structure doesn't match, check whether a partner organization could apply instead, or look for a program written for you: browse by audience at small businesses, non-profits or individuals.

Where do you have to be?

Location rules come in a few forms:

Province or territory. Provincial programs serve that province only. See funding in British Columbia and funding in Ontario.
Region. Some federal programs are delivered by a regional development agency and only serve its area, for example northern Ontario or British Columbia.
City or community. Municipal grants and many foundation grants serve one city or region.
Where the work happens. Some programs care about where the project takes place or where the jobs are, not just where your head office is.

Read closely: "located in" and "operating in" can mean different things. If you have more than one location, check which one counts. Our post on federal, provincial and city funding explains how these levels fit together.

Does your size and sector fit?

Many business programs target a certain size, usually measured by employees or revenue. You'll often see the term SME, which means small and medium-sized enterprise, but each program defines it its own way. Check the definition in the guide rather than assuming.

Sector rules can work both ways:

Included sectors. A program may be only for manufacturing, agri-food, technology, tourism or arts organizations.
Excluded sectors. Many programs list activities they never fund, which can include certain retail, real estate, lending or other categories. Check the list in the guide.

If a program asks for a minimum revenue, a number of staff or a time in business, use your actual figures as of the date you apply, and keep the records to show it.

What are ownership set-asides?

Some programs, or parts of programs, are reserved for businesses owned or led by a particular group. These are often called set-asides. Examples include programs for women, Indigenous, Black or young entrepreneurs.

Each program defines ownership its own way. Some look at majority ownership, some at who controls or leads the business, and some at who founded it. Read the definition and be ready to show it. Our posts on funding for women, Indigenous, Black and young entrepreneurs cover where to start, and you can browse funding for women, Indigenous people, Black entrepreneurs and youth.

Does your project qualify, and which costs are covered?

Being an eligible applicant is only half the test. Your project must also fit. Programs usually say:

What the project must do, such as create jobs, adopt new technology, reach a new export market or save energy.
What it must not be, such as day-to-day operations, debt repayment or work already finished.
Which eligible costs are covered, such as wages, equipment, consultants, travel or materials.
Which costs are excluded, often things like routine expenses, land, refundable taxes or costs from before approval.

Pay attention to timing. Many programs refuse retroactive costs, meaning anything you spent before approval. See apply before you spend. Many also require cost-sharing, so you'll need to cover part of each cost yourself. Each program sets its own share; check the program page. Our project budget guide shows how to sort costs into eligible and ineligible lines.

What's the difference between "must", "may" and "should"?

These small words change the meaning of a rule:

"Must", "shall", "required", "only" describe hard rules. If you don't meet one, you are not eligible, however strong the rest of your application is.
"May" gives the funder a choice. "The program may fund equipment" means equipment is possible, not promised. "Applicants may be asked for financial statements" means be ready.
"Should", "preferred", "priority" describe what the funder favours. You can still apply without it, but you may score lower.
"Up to" sets a ceiling, not a typical amount. Most approvals are for less than the maximum.
"And" versus "or" matters. "Incorporated and in operation for some time" means both; "a business or a non-profit" means either.

When a rule lists several conditions, check each one separately. It helps to copy the rules into a list and tick each one off with the evidence you have.

How do intakes and deadlines affect eligibility?

Even if you meet every rule, you can only apply when the program is accepting applications. Some programs have a fixed intake with a closing date, some use continuous intake, and some are first-come, first-served until the budget runs out. Some start with an expression of interest before a full application.

CanGrant works out each program's status from its intake dates. Check closing soon for programs whose intakes end shortly.

When should you ask the funder?

Ask when a rule is unclear, when your situation is unusual or when two documents seem to disagree. Most funders have a contact email, phone line or program officer, and many would rather answer a question than review an ineligible application.

Good questions are specific:

Describe your organization type, location and size in one or two sentences.
Quote the exact rule you are unsure about.
Ask a yes or no question, such as whether your structure or project counts.
Keep the answer in writing.

Contact funders using details from their own site. No real funder charges to answer questions; see how to spot a grant scam.

How can CanGrant help you check?

The eligibility check asks a few questions about you and your project, and lists programs that may fit, ordered by fit and deadline.
Program pages show the rules in plain language with the funder's exact words and a source link.
The glossary explains the terms funders use.
Topic pages such as hiring, growth and energy group programs by what they pay for.

When you're confident you qualify, our grant application checklist and how to write a grant application will help with the next step.

Frequently asked questions

If I meet most of the rules, should I still apply?

Not if you fail a "must" rule. Those are firm, and an application that misses one is usually screened out. If you miss only a preference or priority, you can still apply, though you may score lower.

Does a sole proprietor count as a business?

For many programs, yes. Some require an incorporated company, though. Read the applicant type rule closely and check the program page.

What if the program page and the applicant guide say different things?

The applicant guide is usually the detailed, binding version. If they truly conflict, ask the funder and keep their answer in writing.

Why does CanGrant show the funder's exact words?

Because a summary can miss a detail that matters. We write each rule in plain language and show the funder's exact words with a link, so you can check the original yourself.

Does being eligible mean I'll get funding?

No. Eligibility only means you can apply. Most programs then assess and compare applications, and the budget is limited.

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. A CanGrant editor hasn’t reviewed this article yet.