Question of the Day
Why should I apply for government funding for my small business?
After receiving this question about applying for government funding many times over the last few months, we thought it should be one of our daily Q&A’s to give you guys the answer. We asked one of our expert funding advisers to help with the answer:
> The answer to this question is pretty simple actually. If you don’t know why you should apply for government funding for your small business, you most likely fit into one of the following two categories. The first: you don’t know what you need. The second: you’re unfamiliar with the government programs as a funding option.
Whichever of the two you are in, your first step should be to create a business plan for your small business and figure out if you actually need funding or not.
The area where you are lacking, be it marketing and advertising, staff and training, tools and equipment, cash flow, etc., that’s the area you should focus on.
Government funding isn’t for everyone. Sometimes it just simply makes a lot more sense to take out a small personal loan, use your credit cards, or borrow from family and friends. But if you are considering a larger amount of funding that you need, you should definitely turn to the government for that help.
The Canadian government hands out billions of dollars in government funding. This funding comes in the form of government grants, government low interest or no interest loans, tax credits, and financial assistance. There are no catches, it’s not a scam. If you meet the criteria set forth by the funding agencies and you have what it takes, you will be able to apply.
Currently there are over 900 different government funding programs across the country, so there is a lot of money to be had.
Why should you apply for government funding? It’s simple. If you are able to meet the criteria of the various funding programs, you can benefit from very low interest rate loans, even interest-free loans at times. If you are able to obtain a government grant, it could be money that you never have to repay. Otherwise, you can benefit from having government guaranteed loans (the government is your co-signer), or tax credits and tax breaks.
Funding is available to help you start your business, hire staff and train your employees, conduct market research, develop your product or service, and purchase tools, equipment, and land. Be sure to take advantage of that.
Hopefully this answered your question about why you should apply for government funding. Tune in tomorrow for another daily Q&A.
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