Canadian government grants for business owners – it’s been a topic of ours for quite some time now.

Why?

Well, there are a lot of unknowns when it comes to the discussion related to government funding for business owners.

A lot of controversies, many misconceptions but mainly just lack of information which is the leading cause of both the misconceptions and the controversies surround the Canadian government grants and other funding options for businesses.

We here at CanadaStartups.org are somewhat experts on the topic.

Not only do we help our members find Canadian government grants for business owners through our Funding Database, but we also help guide our members through the entire process.

It is a process – a long one in fact.

You first have to know what you need funding for, then you have to find the government grants or loans that are right for you; then you have to apply – and from that point on it’s a waiting game.

We help with all of that.

But here is some more details on Canadian Government grants for small business owners; so that you can have a better understanding of the topic.

Do Canadian Government Grants Exist?

There are nearly a thousand different govenrment funding programs. Some are government grants, some loans and some are tax breaks or tax credits.

Government grants do in fact exist and business owners all across Canada get them all the time.

The main misconception of government grants for small businesses is that they are available to everyone for every funding need.

While they may be available to many business owners; they are mainly aiming towards funding needs such as hiring or training staff; energy and efficiency and not much towards “starting up”, or “purchasing tools”, “marketing”..etc

If you’re questioning weather or not you may be eligible for a government grant; answer this question:

Does your funding need only benefit you?

For example: You need a new pick up truck for your construction business. This will only benefit you and perhaps create more of a revenue for you; but it does not create any extra jobs; it does not support the economy in any way.  But let’s say you want funding to help you hire an extra construction worker for your company, because you just bough an extra pick up truck – a grant may be something that is doable to help you pay the employees wages.

Government Grant Misconception

Most people, when they think of government grants for business think of “free money”.

While it may be “free money”; there are different types of government grant programs. And not all are “non repayable government grant programs”.

The different government grant types include:

• Non repayable government grants
• Conditionally repayable
• Partial contributions

The non repayable government grants are exactly as they are called – non repayable.

This means that if your business is eligible for a non repayable government grant, you simply apply – get the money – and use it towards the specific activity that you applied for and you never have to pay it back.

The conditionally repayable grants are also an excellent way to obtain extra money for your small business; but keep in mind that they do have conditions placed on them. Sometimes these conditions are decided and negotiated upon. An example condition may be that the funds are non repayable until you are seeing profits; at which point the grant becomes a loan.

Partial contributors are similar to “free money” or to a non repayable government grant – but you as the business owner are responsible for having your own money as well. The government may provide you with funding (a matching amount) to what you place into the business. For example, if you use $10,000 of your own funds the government program may provide you with $10,000 on top of that (non repayable).

How Easy Are Canadian Government Grants To Obtain

Canadian government grants are available.

How easy they are to obtain depends on a number of factors. These factors include:

• Your location
• Industry
• Funding Needs (the purpose)
• Program you apply to
• Time of year you apply (deadline dependent)
• Number of applicants
• Your business plan
• ..etc

The best way to apply to a government grant or any funding program offered via the Canadian government is to ensure you apply on time, have a professional business plan, know exactly what you need funding for and to ensure that you meet the requirements of the grant or loan programs.

Government Grants or Government Loans

As a small business owner in Canada, applying to government funding programs, you don’t really get an option to apply to a grant or to a loan – it really depends on what is available.

Of course most people want a government grant; but loans are much easier to obtain since there are many more government funding programs that offer loans versus grants.

Government loans offer more freedom to the business owner or applicant. The reason for this is because there are loans that are available for various funding needs; where a government grant program has to be specific to what is available such as “for hiring”, ‘for training”..etc

The next step…

If you are a small business owner or considering starting a small business and you’re in need of funding, Canadian government grants for business are definitely a must to consider.

While they may be difficult to obtain, organizations like us here at CanadaStartups.org can help you navigate through the mess.