FAQs: Does My Business Need 100 Employees to Apply?

19/06/2025

Reading Time: 4 minutes

A common frequently asked question (FAQ) when it comes to applying for government grants, loans, and/or tax credits is how many employees are needed to be eligible for funding? It is a common misconception that businesses must have a specific number of employees to be eligible for funding. While some programs have strict eligibility criteria, the truth is that most programs apply to a wide variety of Canadian small and medium-sized enterprise (SME) businesses, including those ranging from just one employee to hundreds. 

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The simple answer is no; a business does not need at least 100 employees to apply for funding. Most government funding programs support businesses with at least 15 employees, but there are other programs, such as for hiring and training grants, that support businesses with 1 to 50 employees. Canadian government grants and loans are tailored to support small businesses, and each program has its own eligibility criteria. 

Not having enough employees or having too many should not hold a business back from finding out more about eligibility for funding programs. Too often, funding goes unallocated because businesses have misconceptions about guidelines such as employee counts. 

Our team at Ryan highlights key eligibility factors for trending programs. You can learn about program qualifiers, such as employees needed, by signing up to receive our free weekly funding newsletter covering the latest news in government funding. 

Understanding Employee Thresholds in Government Funding 

A Canadian small and medium-sized enterprise (SME) is a business that typically employs fewer than 250 people, but sometimes up to 500, and generates an annual revenue below a certain threshold. SMEs are often described as the backbone of the economy since they account for a significant portion of employment and contribute to economic growth. 

Although SMEs come in all shapes and sizes, ranging from sole proprietorships to small family businesses to start-ups and emerging enterprises, their size can limit resources resulting in unique challenges such as access to financing, market reach, and difficulties navigating complex regulations. 

Due to these common challenges faced by SMEs, a large portion of government funding is allocated to support the essential part they play in the overall health and vitality of Canadian communities, as well as innovation and job creation. 

Common Small Business Grants for Companies Under 100 Employees 

Below are three popular federal programs for Canadian businesses which have eligibility surrounding employee count. These programs can give your business a sense of how funding programs can vary regarding how many employees a business should have to be eligible: 

Canada Digital Adoption Program (CDAP) 

The CDAP was designed to help small and medium-sized enterprises (SMEs) adopt digital technologies. It comprised two streams: 

  • Grow Your Business Online: Offered micro-grants up to $2,400 to help small businesses adopt e-commerce solutions. 
  • Boost Your Business Technology: Provided grants up to $15,000 for developing digital adoption plans and access to interest-free loans up to $100,000 through the Business Development Bank of Canada (BDC). 

Current Status: 

  • As of June 2025, both streams have concluded and are no longer accepting new applications. 

CanExport SMEs Program 

This program supports Canadian SMEs in expanding into new international markets by covering a portion of eligible export marketing expenses. 

  • Funding: Up to 50% of eligible costs, with a maximum of $50,000 per project. 
  • Eligibility: For-profit Canadian businesses with 1 to 500 full-time equivalent employees and annual revenues between $100,000 and $100 million. 

Current Status: 

  • The application intake for the 2025 fiscal year closed on May 31, 2025. Businesses are advised to monitor the program’s official website for updates on future application periods. 

NRC IRAP Youth Employment Program (YEP) 

The YEP provides financial assistance to SMEs for hiring young post-secondary graduates in roles that support innovation. 

  • Funding: Up to $30,000 per graduate for a 6 to 12-month period. 
  • Eligibility: 
  • Canadian SMEs with 1 to 500 employees. 
  • Candidates must be between 15 and 30 years old, Canadian citizens or permanent residents, and legally entitled to work in Canada. 

Current Status: 

  • As of June 2025, the program is open and accepting applications. Interested businesses should contact the National Research Council’s Industrial Research Assistance Program (NRC IRAP) for application details.  

Note: While some programs have concluded, others remain active. Businesses are encouraged to regularly check official program websites or consult with funding experts to stay informed about current and upcoming funding opportunities. 

Government Funding Programs for Canadian Businesses 

Canadian government funding programs support businesses from small businesses, large corporations, non-profits, and post-secondary research institutions with a wide range of numbers of employees. 

The key to accessing these programs is understanding which programs are the best fit for your organization and upcoming projects by understanding eligibility factors including employee count, timelines, activities, costs, and project types. 

Unsure about government funding support for your Canadian business? Learn more by reviewing this free downloadable Navigating the Government Funding Process slide deck which is a roadmap to the government funding application process. 

 

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