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OpenFederalGrants

Innovative Solutions Canada (Challenge and Testing streams)

ISED / federal departments

Up to $1.5M

Set per challenge. Typical Challenge-stream limits: Phase 1 (proof of feasibility) up to $150,000 over up to six months (some up to $300,000); Phase 2 (prototype) up to $1M over up to 2 years (some up to $2M). Current open challenges: MINERVA UAS Deconfliction maximum $500,000 (Phase 2, up to 15 months, about 5 contracts); Field-deployable QCL standoff chemical imaging system maximum $1,500,000 (Phase 2, up to 16 months, 1 grant).

Innovative Solutions Canada funds Canadian small businesses to develop and test prototypes that solve problems set by federal departments (Challenge stream), and buys pre-commercial innovations for testing in federal settings (Testing stream). Funding is awarded as contracts or grants per challenge; amounts, phases and deadlines are set in each challenge notice.

Open the official page ↗
29
Worth a look

How to apply

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Who qualifies

Challenge stream: for-profit entity incorporated in Canada (federally or provincially), 499 or fewer FTE employees (including affiliates), conducts R&D in Canada, 50% or more of annual wages to people mainly working in Canada, 50% or more of FTE employees with Canada as ordinary place of work, and 50% or more of senior executives resident in Canada. Testing stream: a private or public company, not-for-profit, university or individual may submit. Solution must be innovative (new, or a significant improvement over current practice). Individual challenges set their own scope and TRL range.

Small business

Good to know

  • Funding: The $1.5M maximum is the largest of the two currently open challenges. Both are Phase 2 only (TRL 5-9). Disclosure states it does not commit Canada to award.
  • Notes: Today is 2026-10-09; MINERVA closes in 12 days.

Evidence from the official page

  • amount“Phase 2 Maximum funding: $1,500,000.00 CAD Project duration: Up to 16 months” source ↗
  • amount“Phase 2 Maximum funding: $500,000.00 CAD Project duration: Up to 15 months” source ↗
  • amount“you will have up to six months and a maximum of $150,000 in funding to develop a proof of feasibility report” source ↗
  • deadline“Closing date: November 19, 2026, 14:00 Eastern time” source ↗
  • deadline“Closing date: October 21, 2026, 14:00 Eastern time” source ↗
  • eligibility“Have 499 or fewer full-time equivalent (FTE) employees” source ↗

Verified 2026-10-09 · High confidence. Always confirm on the official page before applying.