Government funding
Government funding refers to money provided by governments to businesses or organizations, such as grants, contributions, repayable loans, tax credits and wage subsidies, for purposes like research, hiring, training or expansion. It is a general business term. Funding is usually governed by a contribution or grant agreement setting out conditions, reporting and repayment obligations.
How BC law treats it
In BC, government funding is governed mainly by the terms of the program and the funding agreement. Tax incentives, such as the federal scientific research and experimental development program, are governed by the Income Tax Act and its own rules.
What it means for your business
A business should track eligible costs carefully and meet all reporting requirements in the funding agreement.
Risks and common mistakes
Failing to meet program conditions can require repayment of funds already received.
For the full explanation, see our entry on Grant agreement.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
