5 Things Nobody Tells You About Government Funding For Businesses

Okay okay, so the big question, or questions of the day – well, of the month or even the year are about government funding for businesses in Canada.

Is government funding for small business owners in Canada real?
Does government funding exist?
Is government funding for businesses a scam?
Why am I not eligible for government funding?
Why can anyone and everyone get funding but me?
I want government funding before I start a business?
Am I guaranteed government funding for my business?

So before we get to answering these questions, let us tell you the 5 things nobody ever tells you about government funding for businesses in Canada.

#1: No, Government Funding Isn’t For Everyone

In order to be eligible for government funding for your small business in Canada you have to meet certain criteria set forth by the funding agencies. These criteria vary from agency to agency, from funding program to funding program. To ensure that you know the criteria, it’s recommended to look at all of the details from the program.  The most general criteria includes your location, industry, business plan, funding needs, credit score..etc

#2: Your Business Must Be Registered Before You Apply For Government Funding

As much as you may need funding to “start your small business”, the government doesn’t have much help before you actually have a registered business. The Canadian government does however make it very easy to register a small business. As soon as that’s done, you can start to apply for funding programs (those which you may be eligible for). It’s highly recommended to search for programs as soon as you can (even before you register) to know what’s available.

#3: Not All Government Funding Programs Are “Just Grants”

When somebody says “government funding”, many people thing “just government grants”, however in reality – government grants are just one type of funding that is available. There are also many consulting programs, tax breaks or credits, no interest to low interest loans, partial contributions..etc

#4: You Must Have A Business Plan

Many, if not all government funding program agencies will ask to see your business plan before they even consider your business as a investment. A business plan is a guide to your business and it should be done before you apply for any funding. Your business plan should answer the important questions the funding agencies want to know. Consider the Business Plan Builder Tool to get started with your own business plan.

#5: There Isn’t Just One “Government”

Most people when asked about government funding will say “I already applied and they said no!”. This is the typical response. Sounds horrible right? The fact is that the Canadian government has over 900 different funding programs available which comes from hundreds of different funding agencies across Canada – so when you say you’ve applied and they said no – you most likely just applied to one program. Government funding comes from different levels of the government; local, provincial and federal. Don’t be fooled at thinking that if one program said no, the same applies to all agencies and all programs.

Those are the top 5 things nobody ever says about government funding for businesses in Canada.

Now moving on to answering your questions;

Is government funding for small business owners in Canada real?

The simple answer is Yes, government funding for small business owners in Canada is 100% real. The only reason why the question even arises is because of those who have applied and got denied due to a number of factors. Think of it as you going to a bank to get a loan, but have no job, no income, no equity and you are asking for $50,000. The bank most likely will say no. As you walk away disappointed, you call your friends and family and tell them – bank loans aren’t real.

Does government funding exist?

Real yes. Easy to obtain, not always. Is it for everyone, not necessarily. But the truth is government funding does exist, and thousands of small business owners across Canada benefit from the funding.

Is government funding for businesses a scam?

Similar to our first answer with the bank loan example, government funding for businesses is not a scam. The idea of a scam is derived from believing you will get funding no matter what – but don’t because you aren’t eligible. As we always say, before you apply to any funding programs – know the facts and the application criteria.

Why am I not eligible for government funding?

Unless you’ve actually looked at all available funding programs, there is no way of knowing if you are eligible or not. If you have gone through all programs and still believe you aren’t eligible, it’s possible that new funding programs may come out – as they do each month which you may be eligible for. It’s never a 100% no.

Why can anyone and everyone get funding but me?

It seems that everyone who play’s the lottery has a higher chance of winning but you – you’ve never won, right? The same can be said for government funding. If you have a great business idea, a professional business plan and you meet the funding criteria it’s a matter of applying, applying and re-applying (the more programs you apply to the greater your odds are of obtaining funding). If you are constantly denied funding, it’s highly recommended to look at the reasons why, and adjust accordingly.

I want government funding before I start a business?

You must have a registered business (business license), before you can apply for funding.

Am I guaranteed government funding for my business?

As funding is provided by the various funding agencies across Canada, there are no ways to guarantee funding. Even if you meet all of the criteria and are a perfect match, it’s entirely up to the funding agency to approve or deny funding based on their internal criteria as well.

Knowing these 5 unknown things about government funding for small business owners in Canada and having these top questions answered, we hope that you are a little bit smarter on government funding and that you can use that knowledge towards your own small business and funding applications.