The majority of small and mid-sized businesses (SMEs) in Canada struggle to comprehend the grant and loan application procedure.
Most SMEs find it challenging to devote the time and resources necessary to apply for funding because it requires them to research the Canadian government funding program, complete an application, and submit it to a government office for assessment.
Less than 17% of Canadian enterprises utilize small business subsidies, and close to 50% of businesses do not use any sort of government funding. Below we have mentioned finance Canada grants tips that will help you take government grants easily.
Access Multiple Sources of Canadian Government Grants and Loans
In Canada, money for the government can come from a wide range of sources, including federal (national) funding, provincial funding, and funding with a municipal or regional focus.
Federal funding, or cash provided by the federal government (Canada), is available to businesses throughout the nation in the form of grants, loans, vouchers, and tax advantages.
Small enterprises should also be aware of regional resources that can aid in business expansion. Although there are some exceptions, startups and early-stage firms are frequently the target audience for these investment programs and growth services.
Know the true cost of the money
The amount of work involved in reporting requirements for government assistance might occasionally surprise businesses.
You must take such reporting labor into account in your cost-benefit analysis because money is often reimbursed through claims on a monthly or quarterly basis. Additionally, annual reporting continues for several years after a project is finished.
Although it has distinct costs from funding from venture capitalists or financial organizations, government funding is a valuable source of patient capital.
Applicants frequently are unaware of the limitations that government funding programs may place on their capacity to protect their intellectual property, attract more investment, or sell their business outside of Canada.
Therefore, if you have other investors, be sure they agree to any potential restrictions.
Plan your Business Objectives Before Researching Canadian Government Grants
Companies frequently adapt their business plans to satisfy grant requirements. Avoid doing this! Letting grants run your firm is unsustainable, especially given how frequently award conditions are revised.
Depending on the goals of the government, several programs may expire at any point.
For instance, there are business expansion grants that would pay for product labeling, social media, and packaging if an agricultural company in BC wishes to market its food items to other markets.
This can reduce the number of expenses that the business would typically bear significantly. In this instance, the government grant aids a strategy for corporate expansion and activity that is already being carried out by the company.