5 Proven Ways To Get Government Grants in Canada

 Getting government grants in Canada is one sure way to give your small business a boost. 

Financially speaking, government grants are often direct investments made by the various government agencies across Canada, into your business and the funds in most cases never have to be paid back.

Talk about getting lucky in business; with government grants, you can use these funding options to fund various business startup opr expansion expenses.

Government grants in Canada

There are various government grant options across Canada.

These funding options come from the local government, provincial government as well as the federal government of Canada.

While most government grant programs are considered non-repayable, it is important to keep in mind that there are different grant types as well.

These can include the already mentioned non repayable government grants which are simply grant options that don’t require a repayment at all. The money is yours to keep, as long as the funds are used for the exact purposes that were approved for.

In addition to the non repayable options, there are one time or renewable government grants. Depending on your situation and your specific funding needs, the one time grants are often there to help cover the one time expenses, such as improvement to equipment, or renovations of a business..etc; while the renewable grants are used multiple times and applicants can keep coming back. These renewable government grant options are used to help hire staff, pay for wages, cover training costs..etc

Lastly, the third most popular government grant type is a partial contribution grant. While it is still popular and still considered non repayable money, to be eligible, you as the business owner will have to come up with the “other half” of the money.

With a partial contribution, it can range from 20% coverage to 80% of the funds as long as you match a certain amount, or percentage. 

To see all available government grant types in Canada and to access all available funding options, using the Funding Database will be of great help.

5 ways to get government grants in Canada

Knowing which government grant types are available is one thing. Finding the grants and options that match your needs is another. 

Many business owners fail with the grant applications due to simple mistakes, but these 5 steps will help you get the government grants your small business needs.

Be sure to follow the 5 steps to ensure your success.

Step 1: Have your business plan ready to go

Having a business plan is one of the most crucial steps to getting you any government grants in Canada.

A properly developed business plan will ensure that you have all of your bases covered, explaining your business model, your growth potential and discussing your financial potential.

Most government grant agencies in Canada will require and will use the business plan to make a decision to fund your business, or not.

While business plans can be fairly expensive to pay for (if hiring a professional), and can cost upwards of $5,000; it is important to remember that it is very much needed.

You can also use the Business Plan Builder Tool available via Canada Startups platform to get your plan done, following the standards that Canadian government grant agencies want to see. This is part of your membership with CanadaStartups.

Remember that with your business plan, it is always a good idea to have some expert guidance!

Step 2: Prepare your financial statements to look favorable

Along with a proper business plan, your financial statements can make a difference between success and failure of your funding applications. 

In most cases, if you are just starting a business, your financials will all be projections. These are estimates, or guesses as to what you assume can happen with your business.

It is recommended to project your sales revenue, your expenses and plan the projections based on a mid-to-best case scenario. However the trick is to assume that you will get the government grant or the funding you are applying for. 

With that in mind, you can position your financial projections and tell the agency you are applying to “this is what I assume is possible if you give me the financial support I need”.

As an existing business, you most likely will have some trading history – meaning, you will have some financial statements to be able to share.

A good idea is to share a 3 year financial statement, including the balance sheet, cash flow statement and a profit/loss statement.

If you are stuck, reaching out for some expert help never hurt anyone. But do keep in mind that without proper financials, you won’t stand a chance at securing any government grants in Canada!

Step 3: Break down your funding needs to the specifics you need

As you complete your business plan and prepare your financial statements, the one thing that will come out of the exercise is that you will determine what you need financial support with.

This means, these expenses that you’ve determined that you may have a tough time covering on your own, can often utilize the support of the various government grants available.

It is a good idea to break down your funding needs to the specifics of what you need. The more you break down, the better – as you can show an allocation of how much is needed per each, giving you a better opportunity to maximize your funding potential.

Keep in mind, a break down is always good as it can allow you to access the non repayable government grants, the one time and renewable grants, the partial contributions, but also gives you an opportunity to access over 1,500 available grants, government loans and tax options that are current;y available via government of Canada and found in the Funding Database.

Step 4: Do your funding search on a “broad level”

Finally, when all is set and done with the plan, the financial statements and you know what you need the funds for – to really settle down and start your funding search it is important to be a bit general.

Unlike with your business plan and financial statements, where you have to be as specific as you can, when doing a funding search for available government grants in Canada, being broad will ensure you can reach more options.

Don’t look locally only; keep in mind that various prvoices funding small businesses from within and externally – but also, keep an eye on the federal options as this is where the big grant money comes in.

Focus on the terminology that the government uses. There is no money to change windows on a storefront, but there may be grants and funding available for “renovations”, or “leasehold improvements”. 

There is no money for “paying your marketing manager his pay”, but there may be “wage subsidy”, or “wage support” to covering those payments in full, or partially.

No funds are available for a laptop purchase, but perhaps you can get funds for “equipment purchase”.

Being broad and aware of what is available in terms of funding and how to best search it, will give you a big boost with the potential government grants.

Step 5: Review the grant application requirements

Once you’ve found some options, the grant applications are next.

The grant applications are often where 90% of those who fail, fail due to simple avoidable mistakes.

The first step to ensure your grant application success is to stop, read the application in full and ensure you have a checklist of what you need to provide.

Often this will be a business plan, financial statements, PitchDeck, perhaps a cover letter..etc; but can be more specifics, so be sure to read the application requirements in full to ensure your success.

Specific terms may be in place in regards to how the agency wants you to submit the application; what to provide and where/when to apply. Following these specific grant application requirements could mean the difference between you getting accepted, or denied.

The above are the 5 proven ways that you can get government grants in Canada. Follow them, if you need guidance, ask for help!