How To Guide: Small Business Government Funding Search

Government Funding for Small Business Owners in Canada

You’ve most likely seen the ads all over the web showing you government checks with thousands of dollars on them and happy individuals holding them. While some of these are real, the majority you will see are fake stock images that are used to attract and fool unsuspecting startup entrepreneurs and business owners. In fact, the Canadian government warns people of such websites guaranteeing government funding in exchange for a percentage or a dollar amount to register.

The fact is though, the Canadian government actually hands out billions, that’s right billions with a capital “B”, to small business owners and entrepreneurs across Canada. The only setback that we as entrepreneurs have is that the government of Canada is not just one government agency. This means that the government funding for small business owners actually comes from multiple levels of the government (local, provincial, and federal), and through multiple funding agencies. In fact, there are nearly a thousand government funding programs for small business owners available.

We here at CanadaStartups took some time to create this guide to help you with your small business government funding search.

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What is Government Funding?

Government funding is a broad term that is used to explain what the different levels of the Canadian government offer as a form of assistance and support to startup and existing small business owners across Canada. As a Canadian citizen, one that pays taxes, you are entitled to apply to and benefit from potential funding for your own business if you meet the criteria set by the funding agencies.

The Canadian government created these assistance programs in order to actively stimulate the economy, create jobs, and support small businesses and entrepreneurship. In other words, as you pay taxes, a percentage of your taxes are taken and given to thousands of businesses across the country in order to improve the overall economy, so more money can be put back into the country and ultimately you have a better life.

Types of Government Funding

When we talk about government funding, it doesn’t always mean that it has to be offered in a monetary form. In fact, the Canadian government and its multiple agencies offer government support in the form of government grants, government loans, tax breaks, tax credits, consulting services, and support.

Not all business owners applying to the various government agencies are in need of financial support, but some benefit from the various mentorship programs, training programs, and consulting services. While others benefit from one-time grant contributions, low-interest or no-interest loans, government-guaranteed loans, and tax breaks or credits. Each situation and business is unique.

Who Can Benefit From Government Funding?

Usually those who apply to the various government funding programs are the ones that are benefiting. However, on a larger scale, those who benefit the most are individuals looking to start a small business and those who are looking to expand their current or existing small business.

The government of Canada provides funding programs and assistance to help you start your small business, conduct research and development, create your business plan, hire and train your employees, pay for marketing and advertising, purchase tools and equipment for your business, help with day-to-day cash flow, and much more. If any of these situations apply, you are more than welcome to look for potential funding and seek assistance.

Why Apply for Funding?

Why apply? It’s easy. If you need funding or support, you need to apply, otherwise it won’t just come to you. As much as the government of Canada and its various funding agencies want to help and support entrepreneurship, they won’t just come and hand you a check unless you make yourself known and apply.

If you need to start your business and you need funding for any of the above-mentioned purposes, applying to the various government funding programs could help you get funded.

The Usual Funding Requirements

Since there are so many nearly 1,000 government funding programs available from many levels of the government and different agencies, there are no usual funding requirements in order to be successful with your funding application other than the regular business requirements.

You should probably have a business plan ready. Don’t waste your time or the funding agency’s time by applying without having a business plan prepared. At the same time, be sure to read the program requirements and all of the criteria. Be sure to meet everything that the funding agency asks for, otherwise you are simply wasting each other’s time. Most importantly, be clear as to what it is you are looking for, such as how much money you need and what it will be used for.

One important thing to remember is that each government funding agency gives its program directors a set budget for the program. This means that the program director has to spend or allocate that money for the year or term in order to receive that much or more the following year or term.

It is important to apply to the funding program on time and meet the deadlines. It is just as important to ensure that you don’t ask for too much or apply to the wrong place. Be sure you have contacted the right funding agency, about the right funding requirement, and ask for the right amount of money in order to be most successful.

The Search for Funding Process

The search process, or the reason why we created this quick funding search guide, is because the search process for government funding is extremely complicated.

The government funding programs are not all offered by the Canadian government but through multiple levels of government
The funding comes from hundreds of different funding agencies
There are location-specific funding programs
There are industry-specific funding programs
There are funding-requirement-specific programs
Most funding programs are not promoted or are extremely hard to find
The information available on funding programs is limited
The information is scattered across many sources
Researching funding programs is very time-consuming
You probably have better things to do

As you can see, the process is not simple. If you’d like to try it out yourself, we suggest visiting various government websites to find the information you need. If you find a funding program, try to understand the application criteria and how to apply. If you are successful, we applaud you.

Because of the challenges listed above, it is often beneficial to get a little bit of help. Focusing on your small business and ensuring the other steps are taken for a successful startup or expansion is key. Instead of spending your time researching, take advantage of resources that have already done the work and present you with the right programs and criteria.

When searching for funding, start with your location. Many funding agencies are location-specific, which can narrow your search significantly. Next, focus on industry-specific programs. Finally, narrow your search further by focusing on programs that fund specific needs such as marketing, advertising, improving cash flow, purchasing tools or equipment, and hiring or training staff.

The next step is to apply.

The government of Canada warns individuals to stay away from websites selling government funding information, as this information is free. There are some exceptions, such as consultants, grant writers, and funding experts. These professionals help find programs and assist with applications, but they are often expensive, ranging from $2,000 to $5,000 or more, and may take a percentage of the funding awarded.

If you do your research and the consultant or funding expert can provide documentation proving their ability, it may not be a scam, but it is expensive. Remember, no matter who applies on your behalf, there are no guarantees of funding. Only the government or the funding agency can approve or deny your application.

How CanadaStartups Can Help

CanadaStartups has created the Small Business Startup Portal to help small business owners overcome these challenges. Our platform is a one-time fee of $297 and provides access to our Startup Guide, Interactive Startup Timeline, Investor PitchDeck, Business Plan Builder, and Funding Database.

Our Funding Database includes nearly 1,000 government funding programs and nearly 900 private investors that could serve as alternatives.