Understanding Grant Stacking in Canadian Government Funding
- Navoriah
- Jul 1
- 3 min read
Updated: Jul 13
What is Grant Stacking?
If you're applying for multiple government grants in Canada, you may have encountered the term "stacking." In the funding context, stacking refers to the process of using more than one public funding source to support the same project. This approach can significantly enhance your financial support, but it also comes with strict limits and compliance requirements.
Understanding the grant stacking rules is essential for anyone involved in agri-tech, clean tech innovation, or food processing. It ensures that you remain eligible and competitive in your funding applications.
📌 What Does Stacking Mean in Government Funding?
Stacking (also referred to as Total Government Assistance) occurs when a business receives financial contributions from multiple public programs. This can include:
Federal grants (e.g., NRC IRAP, AAFC AgriScience)
Provincial funding (e.g., Ontario Agri-Food Innovation Alliance)
Municipal or regional development programs (e.g., FedDev Ontario)
Tax credits (e.g., SR&ED)
These funding sources can be layered to cover a specific percentage of eligible project costs, known as the Maximum Stacking Limit (MSL).
⚙️ How Grant Stacking Works in Canada
Let’s look at a practical example to understand how grant stacking functions in a real-world scenario.
Example:
A clean-tech company is developing a new bioproduct. Their project budget is $1,000,000.
Funding Source | Contribution | Type |
NRC IRAP | $400,000 | Federal non-repayable |
Ontario Research Fund | $300,000 | Provincial grant |
SR&ED Tax Credit (estimated) | $150,000 | Federal tax incentive |
Company Cash Contribution | $150,000 | Private equity |
Total Public Funding = $850,000 → 85% stacking ratio. If the maximum stacking limit is 75%, this project exceeds the cap, which could lead to ineligibility or a clawback.
🔍 Types of Grant Stacking
Type | Description |
Vertical | Combining funding from different levels of government (e.g., NRC + OMAFRA) |
Horizontal | Combining programs from the same level |
Indirect | Combining grants and tax credits (e.g., IRAP + SR&ED) |
✅ Real Examples of Grant Stacking in 2025
1. AgriScience Program (AAFC)
Covers up to 85% of project costs.
Often stacked with:
Sustainable CAP (provincial delivery)
FedDev Ontario for commercialization
2. FedDev Ontario
Funding available for innovation, commercialization, and growth.
Stacking cap: typically 75% for private sector.
Can be combined with NRC IRAP or clean tech programs.
🔢 Stacking Limits by Program (2025)
Funding Program | Stacking Cap |
NRC IRAP | 75–80% |
AAFC AgriScience or CAP | 75–85% |
FedDev Ontario | 75% |
Sustainable Development Tech Canada | 100% (non-profit); 75% (for-profit) |
Mitacs Accelerate | 50–70% |
CanExport | 75% |
SR&ED | Included in stacking if refundable |
🧠 Tips to Stay Compliant with Stacking Rules
Staying compliant with stacking rules is essential. Here are some useful tips:
Disclose all funding sources, including SR&ED claims, in every application.
Track your stacking ratio using a simple spreadsheet or grant management tool.
Sequence your funding wisely — stack non-repayable funding first, then add refundable supports.
Avoid overfunding — programs may claw back or reduce their contribution.
Work with grant consultants like Navoriah to design a compliant, stackable funding strategy.
🚀 Why Stacking Matters for Canadian Startups
Understanding stacking is more than just avoiding errors — it’s a powerful strategic tool. It helps you to:
Maximize your non-dilutive funding.
Accelerate R&D and commercialization efforts.
Align your innovation timeline with funding cycles.
Ensure sustainability and long-term growth.
💼 How Navoriah Can Help You
At Navoriah, we specialize in assisting innovators and agri-tech entrepreneurs. We help you navigate the complex grant landscape. From structuring stackable funding strategies to managing compliance and reporting, our goal is to ensure you can leverage the most from every dollar — while adhering to stacking rules.
🛠️ We provide the following services:
Stacking checklists
Customized funding roadmaps
SR&ED planning integrated with your grants
📞 Book your free 30-minute consultation to get started — no obligation, confidential, and tailored to your business stage.
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