Understanding Government Business Grants

Understanding government grants will give you an advantage when applying.

Canadian government funding programs are available to help small business owners such as you, obtain funding to start-up or expand their business. Government funding is handed out in various forms by various funding agencies and may support your business with amounts from $1,000 to well over $10 million depending on the programs you qualify for.

The sources that offer the funding pay out in the form of government grants, low interest or no interest loans, tax credits and rebates and offer incentive contributions.

The Canadian government has been handing out business funding grants for a very long time, and what it seems is that most Canadian entrepreneurs are very confused about government funding, and have a misconception when it comes to understanding what government funding really is, what it can do for you as a small business owner, and simply where to get them. I think it’s about time to help you understand.

What exactly are government grants?

Government grants which are offered by the Canadian government and its various government agencies, are a form of financial assistance that is provided to small business owners to support entrepreneurship and to build a stronger economy. The funding that the government hands out, comes from your tax money over the years – as the government doesn’t just keep it, but instead it hands it back to deserving business owners to make the economy grow through job creation.

Even though government grants are available, they are not available to everybody. Each funding agency has a different program that servers a different funding purpose and has its own qualifying criteria which must be met before funding can reach the entrepreneur. One of the major benefits of receiving government grants is that more often than not, if a business qualifies for a grant it’s the type of funding that the approved small business does not need to pay back. It is basically free money from the government, which you have to use towards your business.

What is a government backed grant?

A government grant such as the one stated in the question before this one is entirely government funded and controlled by the funding agency. However a government backed grant is pretty much the next best thing to government grants but the government itself has little to say in the matter.

Government backed grants are often given out by charitable organizations for various purposes and these charities and organization handing out the money determine how the funding must be allocated and how the funding given out to a small business owner must be used. Is a government grant the best type of funding? Is it the best type of funding, possibly?

But this depends on your situation and the way you look at it. A government grant is pleasing to obtain simply due to the nature of not having to pay it back, but at the same time the criteria and the qualifying metrics which must be met, keep the government grants on a much tighter leash, making it available less then government backed grants, loans and other financial funding assistance.

Can I get free money?

Money is not free. The UK government does provide funding grants which provide what may seem as free money to business owners, however it in-fact is not free. The money itself does not need to be paid back, so there are no strings attached when it comes to the paying back part. However the funding agency which gives the grant out to a business, sets rules and restrictions on how the money can be used and spent.

If a business does not follow these rules and restrictions – the business owner may be called out to pay back the used funding received, and the un-used portion of the grant simply for the breach of contract. Don’t be confused about government grants.

Even though they do not need to be paid back it doesn’t mean that you can go out and buy yourself a Ferrari. Where can I apply for government grants? This question is one of the most asked questions here. Applying for grants is where most business owners who know about government funding end up being stuck on, and simply give up. The information which you as an entrepreneur need to obtain funding is always changing.

Various agencies, funding departments always change the rules, regulations, requirements and criteria, along with program deadlines and ways to apply. Knowing these would solve all problems. Being up to date with the latest information on government grants, and the specific funding program is key to obtaining funding and the information needed to apply. It is often recommended to be in touch with funding agencies handing out the grants you wish to apply for, and constantly checking for any changes in the requirements or program description.

This is the best way to get the latest information.

However at the same time, this is a very consuming process that small business entrepreneurs don’t necessarily want to do.

There are other privately held organizations out-there that provide this information in the form of a database, newsletter update and as an alert service.

Getting in touch with these organizations is a good idea to stay up to date and get the latest facts about each funding programs available, as well as any deadline changes