Government grants
Government grants are non-repayable funds provided by government to businesses or organizations for specific purposes, such as research, innovation, hiring or community projects. Recipients must meet eligibility criteria and usually sign a grant or contribution agreement that sets conditions on use of the funds, reporting and audit rights.
How BC law treats it
In BC, grants are governed by the program rules and the grant agreement rather than a general statute. Grant agreements often allow the government to audit spending and recover funds if conditions are not met. Grants may also have tax consequences.
What it means for your business
A business should read the grant agreement carefully before accepting funds, as it may restrict how the business operates.
Risks and common mistakes
Using grant funds for ineligible expenses can lead to repayment demands and disqualification from future programs.
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.
