Introduction
Starting or expanding a small business in Nova Scotia requires financial planning and strategic investment. Fortunately, numerous grants, subsidies, and tax incentives are available to assist businesses in overcoming financial barriers, enhancing productivity, and investing in growth. This 2025 edition of our guide explores Nova Scotia’s most unique business programs, covering accounting, tax benefits, grants, and wage subsidies. These initiatives provide crucial funding for research and development, workforce expansion, innovation, and business sustainability.
Why Grants and Subsidies Matter for Nova Scotia Businesses
Nova Scotia offers financial support programs to help businesses in various ways:
- Reduce operational costs through non-repayable grants.
- Encourage innovation via research and development tax credits.
- Support hiring and training with wage subsidies and job placement incentives.
- Enhance digital transformation to help businesses stay competitive.
- Promote sustainability and eco-friendly business practices.
- Help women-led and Indigenous businesses thrive through specialized funding.
- Support rural businesses that lack access to traditional financing.
- Encourage export growth through international trade incentives.
1. Nova Scotia Research and Development Tax Credit
- Description: This program provides a 15% refundable tax credit to businesses conducting scientific research and experimental development (SR&ED) within Nova Scotia. It is designed to foster innovation by reducing financial barriers to technological advancements.
- Funding Amount: 15% tax credit on eligible research and development expenses.
- Eligibility: Must be a Nova Scotia-based corporation engaged in qualifying research activities.
- Application Process: Businesses submit research expenditures through the Canada Revenue Agency’s SR&ED program.
- Best For: Technology firms, biotech companies, and businesses investing in product development.
- Pro Tip: Businesses should maintain comprehensive documentation of R&D activities to maximize eligibility and claim size.
- Expansion: Companies engaged in AI research, green technology, and healthcare innovation receive priority consideration.
2. Small Business Loan Guarantee Program
- Description: In collaboration with local credit unions, this program provides loan guarantees of up to $500,000 to help small businesses secure necessary financing.
- Funding Amount: Up to $500,000 loan guarantee (with an interest rebate available for qualifying businesses).
- Eligibility: Businesses must have fewer than 100 employees and be based in Nova Scotia.
- Application Process: Submit a business plan and financial projections to a participating credit union.
- Best For: Startups and small businesses needing access to capital.
- Pro Tip: The higher the business’s creditworthiness and repayment ability, the greater the chance of approval.
- Expansion: Businesses in rural areas or industries like agriculture, renewable energy, and tourism are given preference.
3. Self-Employment (SE) Program
- Description: This program supports unemployed individuals looking to start their own business, offering financial assistance and mentorship.
- Funding Amount: Monthly income support while launching the business.
- Eligibility: Must be unemployed and eligible under the Labour Market Development Agreement.
- Application Process: Submit a business proposal and attend training sessions.
- Best For: Entrepreneurs who are transitioning from unemployment to self-employment.
- Pro Tip: Businesses in high-demand industries may receive additional support.
- Expansion: Special grants are available for businesses focusing on social impact and community service.
4. START Program
- Description: Provides financial incentives to employers who hire individuals in need of work experience. Employers can receive financial assistance to offset the cost of hiring and training employees.
- Funding Amount: Varies based on the employment contract and training plan.
- Eligibility: Small and medium-sized businesses in Nova Scotia looking to hire employees.
- Application Process: Employers must submit a hiring plan detailing how the position will contribute to the business.
- Best For: Employers looking to hire youth, new graduates, or individuals re-entering the workforce.
- Pro Tip: Employers should develop a structured training plan to increase approval chances.
- Expansion: Additional incentives are available for hiring workers in high-growth sectors such as IT, healthcare, and renewable energy.
5. Creative Industries Fund
- Description: Supports the growth of Nova Scotia’s creative economy, including film, music, publishing, and digital media sectors.
- Funding Amount: Grants of up to $50,000 for creative projects.
- Eligibility: Must be a registered business in Nova Scotia operating in the creative sector.
- Application Process: Submit a detailed project proposal including market potential and financial projections.
- Best For: Digital media companies, artists, and production firms.
- Pro Tip: Applicants should demonstrate export potential to enhance their funding approval.
- Expansion: Special funding is available for projects that showcase Nova Scotia’s cultural heritage internationally.
6. Agriculture Business Advancer Program
- Description: Provides short-term financial assistance to agricultural businesses in Nova Scotia to manage cash flow and improve operational efficiency.
- Funding Amount: Up to $250,000 per applicant.
- Eligibility: Open to Nova Scotia-based farms and agribusinesses.
- Application Process: Submit financial statements and a business plan demonstrating operational improvements.
- Best For: Farmers and agribusiness owners needing additional cash flow.
- Pro Tip: Businesses that implement sustainable practices have a better chance of receiving funding.
- Expansion: Funding for organic farming and carbon footprint reduction is prioritized.
7. Graduate to Opportunity Program
- Description: Encourages employers to hire recent graduates by covering part of the salary costs.
- Funding Amount: 35% salary subsidy for the first year, 20% for the second year.
- Eligibility: Employers must hire a recent graduate for a full-time position.
- Application Process: Employers submit an application with job details and expected impact.
- Best For: Businesses looking to bring in new talent while reducing hiring costs.
- Pro Tip: Offering professional development opportunities increases retention rates.
- Expansion: Funding increases for hiring graduates in STEM and green technology.
Conclusion
Nova Scotia offers a variety of financial incentives for businesses across different industries. By leveraging these grants, tax credits, and subsidies, businesses can reduce operational costs, expand their workforce, and drive innovation. Whether you’re a startup, creative entrepreneur, tech firm, or agricultural business, Nova Scotia’s funding programs provide valuable financial assistance to support long-term success.