Government Funding for Small Business: Frequently Asked Questions
When it comes to government funding for small business, everybody has an endless stream of questions. It’s normal to ask questions about something that is the unknown. In our line of work, CanadaStartups has an average of 80 live chat requests per day, about 100 or so emails and hundreds of phone calls. The one thing that all these inquiries have in common is that the majority of individuals are asking about government funding.
Frequently Asked Questions About Government Funding
What is government funding?
Government funding is the money that is provided by the Government of Canada, along with local and provincial government agencies, in order to help and support your small business startup, growth, and expansion. Government funding can be provided to a small business owner in multiple forms of funding, as well as guidance, support, and training.
Who gives out the funding?
Government funding is provided by multiple levels of the government and its various agencies. Depending on the funding program, funding may be available from your local government, your provincial government, or federal government agencies. To have a better idea of who provides the funding, it’s recommended to know the agency.
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Why does the government give money?
The funding which the government provides to small business owners is an investment into the Canadian economy. By providing you, the small business owner, with funding, the government is supporting growth in the economy by helping you create jobs as well as pay taxes, which funds the next businesses.
What kind of money is available?
The money that is available from the government depends on a lot of factors. Your location, your industry, your funding requirements, your business plan, credit score, and more all have a role in determining what kind of money you may be able to obtain from the government. We’ve seen funding less than $1,500 and as high as $10 million to a single business.
Am I guaranteed to get government funding?
Government funding, like any other funding, is never guaranteed. Because of the many factors in play and the unknowns, nobody can guarantee you funding. Think about it like this: how can somebody tell you that you can get your business funded without knowing any of the previously mentioned factors? What if you declared bankruptcy three times in the past? What if you have no credit history? What if you are not a Canadian citizen? What if you don’t have a business or a business plan? What if you are in a city that government funding does not exist for? These are all legitimate reasons why nobody can guarantee you funding. Even if you visit a local bank and ask for a loan, they will not be able to say yes until they review your financial standing. It’s no different with government funding agencies.
Do I qualify for government funding?
Every single funding program has a different set of qualification criteria. In general, in order to qualify for funding, the most important things to consider are having a business plan, ensuring your credit is fair to good, being a Canadian citizen, and having a registered business. The rest of the qualification criteria come from each program, which means that you have to know the program before you can figure out its criteria.
Is there government funding for my business?
There is government funding for many types of businesses. To ensure that you know if your business falls into a category that is often funded, we recommend using our Funding Database or researching on your own to see if other businesses like yours were successful at funding.
How do I know where to apply?
The government does not really make it easy to figure out how and where to apply. The reason for that is because there is not just one government but many different levels of government, all with their own programs and agencies. To know where to apply for funding, you first have to know the agency and the funding program you are dealing with, and ensure you know the funding program deadlines to know when to apply.
How do I know if my application was successful?
If you have successfully applied for government funding, you will receive some type of notification by email, phone call, or letter from the program if your application was successful and you are going to obtain funding. If your application was denied, you may receive the same type of notification; however, it has been known that certain programs will not contact you if your application is not successful.
Is government funding a lie?
Despite the misconception of government funding, it is not a lie or a scam. Government funding helps support the Canadian economy by being given back to entrepreneurs like you to ensure a successful business and a growing economy. The Canadian government hands out billions of dollars each year.
Why should I pay for government funding information?
Government funding information is absolutely free. However, researching all of the available government funding programs takes a lot of time and patience. This may not be the best investment for a new startup or someone who would rather focus on building their business. For-profit businesses like CanadaStartups and a number of others do the heavy lifting by locating all of the available funding programs. By paying a low-cost fee, you get access to researched information on government funding that would usually take weeks or months to find on your own. Paying someone else does not increase your chances of success, but in order to meet program deadlines, sometimes it is better to pay and get the information faster. If you know how to find the programs and have the time to do it on your own, it is recommended.
What are the different types of government funding?
The different types of government funding programs include government grants, government loans, tax breaks or tax credits, and guidance and training support. Funding can be provided to help you start your business, create a business plan, conduct research and development, hire and train staff, purchase tools and equipment, and improve cash flow.
What do I need to get government funding?
In order to get government funding, you need to have an idea of which program to apply to. You must meet the program criteria, apply on time, ensure your credit rating is fair to good, have a business plan, and meet all eligibility requirements. If everything is in order, there is no reason why you would not be able to get funded. However, funding agencies decide who gets funded and who does not, so if you meet the criteria and everything else looks good, be sure to contact the agency and ask for clarification.
The list of questions is endless, as each day more and more questions come to us. We will continue to update this list in order to serve you better and answer any and all questions you may have about government funding before you make the decision to apply. If you still have questions about government funding, please contact us on live chat for a quick answer.