5 Untrue Facts About Government Funding For Small Businesses in Canada

When it comes to starting your small business in Canada, most entrepreneurs are in need of funding. Some have their own money saved up, some are borrowing from friends, family members and visiting the banks to take on a loan. Others consider the option of government funding for small businesses in Canada, and take on the process of getting funded by the government.

The search for government funding in Canada to help you start your small business is not an easy one. With a large number of funding agencies and levels of governments it becomes something of a full time job just to find the right agency that could give you funding. But those who are successful at obtaining government funding simply jump for joy!

There is a lot of talk about government funding, the different programs, the agencies, does it really exist..etc, so we decided to share with you 5 untrue facts about government funding for small businesses in Canada. So here we go.

Fact #1:  Government Funding Does Not Exist

A large number of people believe that government funding does not exist. Why would the government of Canada want to give me money to start my business…?

Well that fact is actually one on top of our list that is not true.

Government funding does exist and comes in a number of forms such as government grants, government loans, tax breaks, consulting and contributions. In fact, there are over 800 funding programs available right now to apply to in our Funding Database.

Those individuals who often state that government funding does not exist, are the same individuals who have never attempted to search or apply for funding.

The fact is that government funding does exist and it is offered my different levels of the government to help support small business owners across Canada. Not everybody is eligible for funding, and a lot of factors go into deciding who is able to get what, and how much. This is what turns a lot of people off from government funding – as it seems to be ” a lot of work “.

Fact #2: There are only government loans and no government grants

Government funding as mentioned does come in a number of types. From government grants, to government loans, tax breaks, consulting and contributions. Depending on the agency you are applying to, your industry and financing needs you may only be eligible for a specific type of funding.

Not everyone can get government grants. But that being said, not everybody can get government loans either. There are a number of factors as mentioned above that come into play when applying for any funding.

Fact #3: You have to be making over $100,000 to qualify for government funding

The different levels of governments in Canada offer funding to small business startups and existing businesses. Funding is available to hire staff, for training of staff, to do marketing/advertising, to purchase land and equipment, to create a business plan..etc

That being said, depending on the agency that provides the funding you may be required to have $100,000 in revenue before you can apply. But not all funding programs are like this. Certain programs help startups, while others help existing businesses and some only focus on large companies making a million or more.

Fact #4: Government Funding is only for large businesses

As mentioned in Fact #3, there are government funding programs for all types of businesses. This is where the search process kicks in where you have to do a little bit more research before you can determine what is available for you and your small business.

Fact #5: “I pay taxes, why can’t the government just give me money”

While our taxes pay for funding programs to exist, the different levels of governments provide funding to help the small business owners grow, which in turn helps the economy grow. As the economy grows, we as Canadians have the lives we have.

The government will help if you qualify for funding based on your business idea, your location, industry and funding needs.

If you make an effort to search for funding you will find programs. We try to help by providing all of the programs in one place which you can access using our Funding Database once you are a registered member.