Funding Program Type: Government Loans

Just the other day we talked about the different government funding program types, and government loans is pretty high in importance on that list of the available sources of funding. In case you missed the rest of the funding types you can see them all here.

Government Loans

Government loans are of high importance to the term government funding. In fact government loans are what makes up the majority of funding that is provided to small business owners across Canada.

Even though a government grant is seen as the ideal way to get your small business funded, the chances of you obtaining a government loan is much higher. Government grants have a list of qualifications which as a small business owner you may find difficult to meet, but a government loan can come in handy and is much easier to obtain.

You may be saying to yourself that government loans are no different than bank loans, and maybe you’ve even been refused by the banks…But before you stop and give up, re-consider.

Government loans are much better than any bank loan. This is because government loans are much more likely to be interest free or come with very low interest rates. Government loans are easier to obtain because they represent a lower risk to the government than a grant, and as much as they do come with little to no interest rate, the Canadian government isn’t looking to profit from the interest. Instead the Canadian government’s goal is to provide small business owners across Canada money to support their business startup and growth.

Money lent out by the government of Canada goes to the business owner in order to further support the economy through creation of jobs, so the benefit is mutual.

Specific government loan programs that are available are also offered to specific industries, in specific locations and for various purposes. Knowing the different types of programs available, and what you need the funding for would be the first step to getting your small business funded with a government loan.

Keep in mind that specific government loan programs are also “government backed” which means that you may simply be referred to a local bank to get your loan, but the government of Canada would act as a co-signer on your application, which means that it would offer more of a guarantee to the bank, allowing them to sign the loan and provide you with a lower interest rate than you would ever be able to get on your own.

In order to start your government loan search we recommend you take a look at the available government loan programs in our Funding Database.

Stay up to date with us on our Blog as well as on our Twitter account for updates on the government funding program types.