5 Main Reasons You Didn’t Get Government Funding

Applying to get government funding for your small business in Canada is not too difficult; however you do have steps to follow, otherwise risk being denied the funds.

While there are many different reasons why somebody may be denied funding for their business, the 3 main reasons for not getting government funding would include:

1. Applying without a business plan
2. Applying without specifics of what you need funding for
3. Applying to a program you are not eligible for
4. Applying too early, or way past the deadline
5. Mistakes on your application

When applying for government funding, it is always a good idea to ask for help. 

Most funding agencies will have great support, but your focus should also be on the applications themselves, as these will often contain the steps and instructions on how to complete the applications correctly.

So let’s take a moment now and review the 5 main reasons why an application, or government funding may be denied; and the steps to avoid.

Applying without a business plan

Your business plan is the key to a successful funding application. It is the one key document that you will need to ensure that your small business can get government funding.

A properly prepared business will explain all that a funding agency needs to know about your small business and will be able to make a much better decision in terms of giving you the approval for the funds you need.

Applying without a business plan is one of the most common mistakes that business owners make. It is a 100% sure way to get denied funding and to have your application refused – especially if the business plan is one the key requirements listed on the application.

While doing a business plan may seem extremely difficult, it is important to dedicate some time to get this done;  otherwise you may not be seen as “serious”; and your business may not be given the attention it deserves.

A business can be done using the Business Plan Builder Tool, to create a plan that is fit for most Canadian government funding agencies. This is also a tool that is step by step guided, allowing you to simplify the business plan creation process and get it done in no time.

Alternatively, if you have the budget, you can pay an expert to write your business plan for you.

No matter, do not apply for government funding without a business plan.

Applying without specifics of what you need funding for

Applying without a business plan is bad; but having spent all this time building a business plan, ensuring it has all the right information; but forgetting to explain to a funding agency what you need funding for, or how much – is much worse. 

Any plan, or funding application that does not clearly state what you need funding for; will be left assuming you do not need funding. This will result in your government funding applications being denied.

A few tips to ensure you explain your funding requirements.

1. Ensure you ask for the right amount of funding based on your initial 1 to 6 months of costs that you are unable to cover on your own.
2. Break down your funding needs to the specifics of what you need funding for. The more specific you are in terms of what you need the funds for, the better your chances are of getting the funds you need.
3. Remember to not ask for a lump sum of funding; but instead, focus your efforts on tha breakdown which will also help you obtain funds from multiple funding options.

Most people who are denied funding due to not breaking down their requirements often make the mistakes as such. Either not providing a figure of how much is needed; or not providing a breakdown of what you would use the funds for. Being unclear in your explanation will result in a denial of funds in most cases.

Applying to a program you are not eligible for

Much like not providing a business plan, or applying with a correct explanation of your funding needs, the next mistake that many business owners make when applying for government funding, is that they are applying to a program that they are simply not eligible for.

There are over 1,500 different funding programs. Not all programs are for everyone and many programs are focus on 3 key focuses:

1. Your location
2. Your industry
3. Your specific needs

It is a good idea to apply to only programs that you meet the criteria for.

As you start your funding search, be sure that the program you want to apply to is available in your location (usually your city, province); and ensure that it does cover the industry you are in (keep in mind that businesses can fit into multiple industries at the same time); and ensure that whatever you asked for in the breakdown, is what the funding agency can actually provide funds for.

Government funding agencies are specific; they are not all interconnected, so it is a good idea to be very careful when reading the criteria and requirements to ensure you don’t apply to the wrong program – which will risk you being denied.

Applying too early, or way past the deadline

Another easy mistake to make with the funding applications is applying to the program way too early – before the deadline is; or applying way too late, past the deadline.

It is a good idea to keep in mind that some, but not all funding agencies will have deadlines. 

There are 2 types of deadlines; when you can apply (the start date) and the deadline when a program closes (the end date).

It is important to not apply earlier than the start date; otherwise your funding applications may be ignored, or not looked at. And if you are sending your application past the deadline, it will not be collected, and will result in your application being auto denied.

Mistakes on your application

The last of the mistakes that often result in funding application denials is simply making a mistake, or multiple mistakes on the actual application themselves.

Many people may make these mistakes and not read the requirements. Any of the above mentioned mistakes are often the mistakes that make up the denial of funding.

Simple mistakes on the application such as what to include, what to avoid, how to apply, when to apply..etc; are all issues that are of importance. Be sure to read the application top to bottom thoroughly before you start completing them.

It is never a bad idea to ask for help. Your end result is to get funded, so be sure to take all of the measures you can to ensure your funding applications are accepted.