When funding is available, especially in the form of a small business grant, as long as you are eligible, you should apply.
If there are multiple grants that fit your needs and you align with them, you and your business should apply to all of them.
In other words, grant stacking is a common practice.
The benefits of multiple small business grants
Most people starting or growing a business tread very carefully around grants. It means so much to get the funding, so the general thought is, “I better be careful so I don’t screw it up”…
This puts you under a lot of pressure, and this pressure often creates limitations.
The truth is, there are hundreds of grants in Canada for small business startups and existing business owners to access. If you are eligible, the more the better.
The downside is that each application for a small business grant may be time-consuming and you are likely going to be denied some. This does not mean you should not apply and try.
The benefit of accessing multiple small business grants for your idea at once is that you greatly increase your chances of success with the funding - especially if the programs you are applying to are specific to key expenses.
How to grant stack properly
It’s not just about submitting anything and everything. This is how you get it all denied.
Instead, proper planning has to be done and to do so, you need a business plan!
If you don’t have a good business plan just yet and just want to see some funding and grants that you can access, you can always start with the 20 minute business plan canvas, it’s free.
Once you have your business plan in place, the next step is to break down your funding needs. This is where you have to take a bit of time as this section of your business plan and grant-finding process is quite important.
Funding Needs
What do you need in terms of funding?
List and breakdown each of the expenses you plan on covering with grant funding.
Ideally, here you are looking at the single expenses, but you are grouping them together.
Example:
Don’t say, laptop, camera, and desk
Do say, equipment purchase
These things matter in the long run. Why, you ask?
Well, there are no grants for laptops, or for desks, or to help you buy a camera. However, there are grants that can assist you with equipment purchase, which can cover each of those!
This is where wording matters.
Along with your funding needs, you want to provide a brief explanation as to why the funds would be helpful and the cost you are trying to cover with it!
Example:
Don’t say, I need $5,000 for equipment to make money.
Do say, my business is seeking $5,000 to cover the cost of the equipment needed for me to be able to take on additional clients, increase my revenue, and be able to hire more staff eventually. The equipment needed includes a laptop, a camera, and a desk, which will cost a total of $5,000.
Now, you have the funding needs broken down, and you know exactly what you are aiming to get funding for. The funding breakdown was really a checklist for you to know what needs you have.
If you’re unsure what else funding agencies and grant agencies expect, you can always review the Canadian Government Funding Checklist here.
To properly stack grants - meaning, apply to multiple small business grants at the same time, the goal is to now find the applicable grants, ensure you are eligible, and apply to the ones with your business plan. If you have multiple expenses you are trying to cover, the grant stacking becomes even more important as you can apply to even more to cover each of those expenses!
Common quesitons with grant stacking
Grants on their own are pretty complicated if it’s your first time doing it. Now, add grant stacking on top of it, this just makes it even more complex. A few quesitons to help clear up the process:
- What happens if you apply for too much money (approval form multiple programs)?
Not every agency will approve you, so applying to multiple programs at the same time may be the only way to ensure that you are doing what’s right. If it does happen that multiple agencies have approved you for the same expense and now you have too much cash, you have a few options:
- Use the funds if you can (for the exact same thing)
- Return the funds to the agency and clarify why
- Ask for an extension, or differnt use of the funds (explain the situation)
Don’t use the money on something differnt, as this can result in penalties
- I applied for a grant for one thing, but by the time I got approved, I no longer needed the funds?
The process is similar to the above, if you no longer need the funds you applied for, returning it is the safest option. Alternatively, you can ask to use the funds for another purpose that the agency may support.
- I applied to multiple grant agencies for differnt needs, but they all ask “did I apply anywhere else”, what should I say?
Honesty is the best policy. Just because you applied elsewhere does not disqualify you from the funding. Some agencies work together, so they like to know, so they can follow an internal process of matching you to funds. The more info they have, the better!
- How many grants is too many?
There is no limit to how many grants you can take on - as long as you are a fit and are eligible and the funds make sense for your business. While it may seem that getting more money is the way to go, it doesn’t always make sense, so follow your business plan and determine what works best for you, based on your funding needs.
Tips on Grant Funding
The best advice that we can give you when it comes to grant funding, be it because you want to apply to multiple grants at the same time, or just knowing how to, is to have a solid business plan that clearly explains your funding needs as discussed above.
Your business plan is really what determines your success with grants.
Other tips to remember:
Not all grants are the same. Some grants cover specific industries only, or focus on specific regions, or can dedicate their funding towards very specific types of expenses only. Be aware so you can increase your eligibility.
A typical funding agency takes an average of 2-6 weeks to approve a grant application. However, this can vary from agency to agency. Factors that may impact this process include review of the key requirements (ie: plan, financials, and pitch deck), deadline time, time of year, number of applicants, and the funding amount or funding budget.
There are hundreds of small business grants at all times across Canada. They are not all for everyone, but keep an eye out as grants come and go an, each month has new options. Ideally, work with an expert who can assist you with the grant search process, as grants tend to be hard to track.
It is always recommended to work with an expert - like Canada Startups. Most funding and grant agencies recommend working with 3rd parties, simply because it directs the process of applying for grants and eliminates unnecessary work and simplifies the work process for the agency. Not only that, but tools like the Funding Database provided by Canada Startups, provide you access to all grants