Did you know that small business grants and loans are within reaching distance for any small business owner or startup entrepreneur in Canada? The big question however is how to apply for small business grant and loan programs and are you eligible?

It’s true, there are hundreds of small business grants, loans and tax break programs offered by the Canadian government!

But how do you get a piece for your own small business?

You have to apply!

Most people simply think that just because you are a Canadian citizen, because you pay taxes and because you “deserve it”, that the government should give you funding for your small business. While most wish it was like this, it’s not – and is far from it.

Getting government funding is extremely difficult in fact. However not for the reasons you may think.

Small business grants, small business loans, tax breaks, incentives and all financial supporting programs offered by the various funding agencies of the Canadian government have one thing in common. Not promoting their programs.

No, not because they could use help in the marketing department, but because they have  no need for it, and frankly most agencies find marketing budgets to be a waste of money, when they could use that towards the funding of future entrepreneurs instead.

So what does this mean for you and your chances of getting funded?

Because these funding agencies don’t promote their funding programs effectively, the chances that you (a regular business owner) will find the program, or have somebody point you to it are very unlikely. Now not all programs are like it; some programs do promote and they are the same ones you hear about all of the time, Canadian Youth Business Funding Program, Small Business Financing Program, or programs offered through the BDC..etc

But what about the other thousand funding programs that you don’t know about?

Companies like us here at CanadaStartups.org actually take the time to get in touch with a large number of these funding agencies in order to put together a funding database or directory of all available funding programs, all in one place in order to save you (the business owner) time from searching on your own. We in fact have a team of researchers who’s job day after day is to locate, update and provide our members with the top results.

How to apply for small business grant?

Before we can tell you how to apply for a small business grant, it’s important to know that grants are not the only programs that are beneficial to a business owner (starting up or expanding).

Most business owners turn to “grants” because they think that these programs are the best for them, since they don’t have to give the money back, it’s the number one choice.

While there are many government grants that are non repayable, there are other forms of grants that you need to be aware of:

• Repayable Grants
• Partial Contributions
• Conditionally Repayable

To learn more about these types of grants and to get more information on all available funding programs take a minute to try the Funding Calculator Tool.

Other forms of funding to consider include tax breaks, relocation incentives, low interest or no interest loans and government guaranteed loans. All great options for a startup or existing business owner to use towards their business  as an alternative or in addition to government grants.

Since government grants are much tougher to get and generally focus on specific funding needs, many people shy away and eventually turn to the other types of funding that the government offers it’s entrepreneurs.

So how to apply for small business grants?

Step 1: Figure out exactly what you need funding for and be very specific

• Hiring and training costs?
• Paying employee wages?
• Paying marketing and advertising costs?
• Renovation and leasehold improvements?
• Help with cash flow?
• Purchasing tools, supplies and equipment?
• Conducting research and development?

The more specific you are in your search, the easier you will be able to locate the funding programs that provide the funding.

Step 2: Figure out how much funding you need (again be very specific)

Asking for money is not a easy task. Why would somebody give you money? When you are seeking funding, you have to be honest, convincing, sound excited but most importantly know what you are talking about and be right.

Break it down into specific needs and seek funding from a variety of programs to cover your needs versus just one.

Think about it?

Are you more likely to get 5 programs to give you $5,000 each for various needs, or 1 program to give you $25,000 right away?

If you need a total of $25,000 as an example for your business to start up, your best search for funding advice would be to break it down into the specific needs that you have; for example:

• $7,000 for hiring employees and paying them wages for 2 months
• $3,000 for office space
• $10,000 for purchase of tools and equipment
• $2,500 for marketing costs
• $2,500 for startup cash flow

Now this gives you an opportunity to apply to multiple programs. Not all funding programs fund every purpose, so once you break down your funding needs, you are more likely to be able to apply to multiple programs which greatly increases your chances of success.

Step 3: Ensure you have a business plan ready

A business plan is one tool that no business (startup or existing) should do without. So it’s not wonder that when applying for small business grants, loans and financing, everybody wants to see it.

Getting a business plan created by a professional could get very pricey, we are talking about a few thousand dollars. So it may not be worth paying $3,000 to get a plan made to apply to a $3,000 funding program. So alternative solutions to getting a business plan made could and should be considered.

Here are 5 best business plan softwares of 2018 that we highly recommend you review and get familiar with. If you’re a startup and need the most help, we suggest using the most user friendly business plan tool which is offered by us here at CanadaStartups, and also offers you expert guidance, access to our funding database as well as expert business plan review and overall help.

When working on your business plan, ensure that you are clearly explaining your business and that you outline your funding needs!

Step 4: Get expert help

While it’s your business, nobody said “do it all on your own”. In fact, you probably hear all the time from successful entrepreneurs that the best thing they’ve ever done is delegate. Leave the small business funding search, the business plan search and all that “complicated” stuff to the experts, while you focus on your business.

Getting expert help is the fastest way that will get you closer to getting your business up and running and funded by the government.

Another reason to join CanadaStartups and take advantage of the Ask an Expert.