Government Funding For Small Business FAQ

When it comes to government funding for small business, everybody has an endless stream of questions. It’s normal to ask questions about something that is “the unknown”. In our line of work, CanadaStartups has an average of 80 live chat requests per day, about a 100 or so e-mails and hundreds of phone calls. The one thing that all these have inquiries have in common is that the majority of individuals are asking about government funding.

Frequently asked questions about government funding:

What is government funding?

Government funding is the money that is provided by your government of Canada, along with local and provincial government agencies in order to help and support your small business startup, growth and expansion. Government funding can be provided to a small business owner in multiple forms of funding as well as guidance, support and training. 

Who gives out the funding?

Government funding is provided by multiple levels of the government and it’s various agencies. Depending on the funding program, funding may be available from your local government, your provincial government or federal government agencies. To have a better idea on who provides the funding, it’s recommended to know the agency. 

Why does the government give money?

The funding which the government provides to small business owners is an investment into the Canadian economy. By providing you, the small business owner with funding, the government is supporting growth in the economy by helping you create jobs as well as pay taxes (which funds the next businesses). 

What kind of money is available?

The money that is available from the government depends on a lot of factors. Your location, your industry, your funding requirements, your business plan, credit score..etc all have a role in determining what kind of money you may be able to obtain from the government. We’ve seen funding less than $1,500 and as high as $10 million to a single business.

Am I guaranteed to get government funding?

Government funding, like any other funding is never guaranteed. Why? Because of the many factors in play, and the unknown’s, nobody can guarantee you funding. Think about it like this, how can somebody tell you “yes you can get your business funded” without knowing any of the previously mentioned factors? What if you declared bankruptcy 3 tomes in the past, what if you have no credit history, what if you aren’t a Canadian citizen? What if you don’t have a business, or a business plan? What if you are in a city that government funding doesn’t exist for? These are all legitimate reasons why nobody can guarantee you funding. Even if you visit a local bank and say “Can I get a loan?”. they won’t be able to say yes until they do a check up of your financial standing. It’s no different with government funding agencies. 

Do I qualify for government funding?

Every single funding program has a different set of qualification criteria. In general, in order to qualify for funding the most important things to consider are: have a business plan, ensure your credit is fair to good, be a Canadian citizen and have a registered business. The rest of the qualification criteria come from each program, which means that you have to know the program before you can figure out their criteria. 

Is there government funding for my business?

There is government funding for many types of businesses. To ensure that you know if your business falls into a category that is often funded, we recommend using our Funding Database or researching on your own to see if other business like your’s were successful at funding. 

How do I know where to apply?

The government doesn’t really make it easy to figure out how and where to apply to. The reason for that is because there isn’t just one government but many different levels of the government, all with their own programs and agencies. To know where to apply for funding you first have to know the agency and the funding program you are dealing with. And ensure you know the funding program deadlines to know when to apply.

How do I know if my application was successful?

If you’ve successfully applied for government funding, you will receive some type of notification (e-mail, phone call, letter) form the program if your application was successful and you are going to obtain funding. If your application was denied, you may receive the same type of notification, however it’s been known that certain programs, if your application isn’t successful will not contact you. 

Is government funding a lie?

Despite the misconception of government funding, it is not a lie or a scam. Government funding helps support the Canadian economy by being given back to entrepreneurs like you to ensure a successful business and a growing economy. The Canadian government hands out billions of dollars each year. 

Why should I pay for government funding information?

Government funding information is absolutely free. However to research all of the available government funding programs, takes a lot of time and patience, this is something that may not be the best investment for a new startup, or somebody who rather focus on building their business up. So, for profit businesses like CanadaStartups and a number of others do the heavy lifting for you by locating all of the available funding programs.  By simply paying a low cost fee, you get access to the researched information on government funding which would usually take you weeks if not months to find out on your own. Do your chances at success increase by paying somebody else, not at all. However in order to meet program deadlines, sometimes it’s better to pay and get the information faster. If you know how to find the programs and have the time to do it on your own, it’s recommended. 

What are the different types of government funding?

The different types of government funding programs include government grants, government loans, tax breaks or tax credits, guidance and training support. Funding can be provided to help you to start your business, create a business plan, conduct R&D, hire and train staff, purchaser tools and equipment, improve cash flow..etc

What do I need to get government funding?

In order to get government funding you would need to have an idea as to which program to apply to. You would have to meet the program criteria, apply on time, ensure your credit rating is fair to good, have a business plan and ensure again that you meet the criteria. If everything is looking good, there is no reason why you wouldn’t be able to get funded. However, the funding agencies are the ones that decide who gets funded and who doesn’t, so if you meet the criteria and everything else is good, be sure to contact the agency and ask why?

The list of questions is endless as each day more and more questions come to us. We will continue to update the list in order to serve you better and to answer any and all questions you may have about government funding before you make the decision to apply. If you still have questions about government funding, do contact us on live chat for a quick answer.