Common Misconceptions about Business Grants

As a small business owner or entrepreneur in Canada you may have at one point given some thought to the idea of applying for a business grant or loan. But if you are still “giving thought”, something must have stopped you from moving forward with obtaining funding.

Grants and loans are a perfect way to give your business the financial boost it needs to start-up, or grow. However, misconceptions about business grants and loans are what keeps entrepreneurs like you inside the box, and not on the outside.

The first misconception is that most business owners think that the word “grants” means free money. However that’s not the case. Only in some instances do grants mean free money, but grants come in a variety of types. Let’s take the Canadian government for example.

The Canadian government hands out thousands of dollars to small business owners in the form of grants. Is it free money? Business owners may take it as free money. These grants are strictly enforced and controlled based on the industry your business may be in, or the purpose you requested the money for.

If you obtain a  business grant of let’s say $20,000 for purchasing new equipment for your restaurant in Ontario, the government may provide you with the grant for it, but it doesn’t mean that you are just handed $20,000 for whatever you want – instead, the $20,000 (more or less) may be given to you specifically for “restaurant equipment purchase”. If you need the funds for advertising, or hiring staff – other business grants and loans may be available for that.

The second misconceptions about business grants include the inability to obtain them, which is the main reason why entrepreneurs don’t plan on applying for business grants from the get-go.

Are business grants really available? Despite what the public things, business grants for various business purposes are available. The Canadian government also provides thousands of dollars in the form of grant assistance to start-ups and expanding businesses. Just take a look at some government grant and loan recipients for proof.

The next misconception of business grants is that you need to have a business, or must be making money to obtain a business grant. Unlike applying for a credit card for your business, a business grant application may be a bit different. Especially if you are starting up.

Grant providers understand that as a new business, or start-up you may not have the credit and reputation as an established business, and you need a chance as well. Business grants may be available for start-ups, purchasing equipment, advertising/marketing expenses and even to hire and train staff.

As you can see; even though grants are often considered “free money” they may not necessarily be, but grants are “new found money” for your business which you may be able to benefit from for a number of purposes. Grants are obtainable as long as you are willing to considering investing your time to apply to find and to apply.

A business grant can inject capital into your small business and mean the difference between success and failure. What are you waiting for?