Toronto Launches Pilot Program for Local Small Business Grants

The city is offering new funding opportunities to help neighborhood entrepreneurs recover from post-pandemic financial challenges.

The City of Toronto has announced a new pilot program aimed at revitalizing local commerce by offering targeted grants to small businesses. The initiative, launched this week, will provide up to $10,000 in financial support to independent retailers, service providers, and food establishments recovering from pandemic-era losses.

Mayor Olivia Chow emphasized the importance of supporting grassroots economic activity in the city’s neighborhoods. 'Small businesses are the backbone of our local economy,' she said at a press conference. 'This grant program is about helping entrepreneurs get back on their feet and keep our communities vibrant.'

The program will initially focus on three neighborhoods: Parkdale, Scarborough Junction, and Little Jamaica. These areas were selected based on economic vulnerability assessments and community input gathered during the city's annual economic inclusion forum.

Eligible businesses must demonstrate financial need and propose a plan for how the funds will be used — such as investing in digital infrastructure, renovating storefronts, or expanding their workforce. Priority will be given to businesses owned by members of equity-deserving groups, including women, newcomers, and Indigenous entrepreneurs.

The funding is non-repayable and will be distributed through a partnership with the Toronto Association of Business Improvement Areas (TABIA). TABIA will also offer mentorship and training to grant recipients, helping them navigate application requirements and implement their growth strategies effectively.

Local business owners have welcomed the move. Fatima Noor, who owns a textile boutique on Eglinton Avenue, said the program offers a lifeline. 'Our rent didn’t stop during the pandemic, but our customers did. This support can help us modernize and reach new clients online,' she said.

City officials say that if the pilot proves successful, the program could be scaled citywide in 2025. A progress report on outcomes and economic impact is expected by the end of this year, as Toronto continues to experiment with tools to sustain neighborhood entrepreneurship and economic inclusion.