Ontario Small Businesses and Government Support
Ontario, home to over 15 million residents, and nearly 500,000 small businesses!
As a central business hub of Canada, Ontario sets many precedents for government support of small businesses and entrepreneurship.
In fact, the Ontario government small business grants are one of the best supporting financial assistance programs offered across Canada.
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The funding provided by the Ontario government helps boost the economy, creates jobs as well ensures that Ontario remains one of the top business-oriented provinces in Canada.
This means more funding and more Ontario small business grants, government loans and tax breaks/credits for business owners.
What government grants are available for small business?
Before we get to disusing the available government grants for Ontario small businesses, it is important to know that there are various funding types.
The funding types are all available to Ontario small businesses to take part in (as long as you are eligible). The majority of the funding will come from local government offices, or the Ontario provincial government, while certain options may also be funded by the federal government.
As a small business in Ontario, you may be eligible for a variety of business funding options, including:
- Government Grants
- Government Loans
- Tax Breaks
- Tax Credits
The Ontario government grants for businesses are often split into a few different types of grants. These include:
- One time and renewable grants
- Partial contribution grants
- Non-repayable government grants
While there may be different types of government grants in Ontario, they may not always be referred to as grants. Other names may be awards, credits, and direct cash programs.
Ontario Government Small Business Grants Explained
Each of the available grants in Ontario will come from the Ontario government, or at the very least be sponsored by the Ontario, or the Federal government.
These small business grants are provided to help you as a small business owner startup or to expand your business.
The 3 Ontario grants mentioned above, each have a different purpose. Read more about these grants below:
One time and renewable grants
The one time and renewable grants are provided to small business owners who may be eligible as a direct form of payment by the Ontario government, to help you cover the costs of your small business.
Generally speaking, the one time grant and the renewable grant are two different types of grants.
The one time government grant is provided once to help you as a small business cover your business expenses.
Depending on the type of expenses, these grants may also be renewable, each quarter, or each year.
Most of the renewable grants will be focused on going green, providing training for your employees, or hiring staff.
To see if you Ontario small business qualified for any one time or renewable government grants, you can speak to a Ontario funding expert via the Small Business Startup Platform.
Partial contribution grants
The partial contributions are government grants that many small businesses in Ontario can take advantage of. However, many scare off as it does require you as the business owner to put forward a partial contribution of your own, sort of to match the fund that the Ontario government small business grant program offers.
While not everyone is eligible, those small business owners that are may be required to put up 10% to 75% towards the business of their own money, in order to get a matching or partial grant.
Non-repayable government grants
The non repayable government grants are what everyone simply wants. So when everyone asks what government grants are available for small business, they really mean they want a non-repayable government grant.
You know the free money that you simply take from the Ontario government, use for your business, and never have to worry about a repayment?
While there are many different grants to help with this, they are extremely hard to come by and are very competitive.
A recent program that was announced as a Covid pandemic support measure for small businesses in Ontario was the Ontario Small Business Support Grant. This grant offered was very helpful to those who have been impacted by the covid pandemic and have continued to do so.
Another similar program was also created for Ontario small businesses which were the Ontario Tourism and Travel Small Business Support Grant. This helped provide one time payments that were non-repayable, of $10,000 to $20,000 to those within the travel and tourism sector.
If you are unsure which Ontario small business grants are right for you, you can access the Funding Database and review all available government grants in Ontario and across Canada.
Government of Ontario small business grants are some of the best in the country, and if you are eligible, you should ensure that you have all that you need to apply.
Speak to a funding expert to see if you are eligible for any government grants by calling 1-800-288-9691.
In addition to the Ontario grants, the government also offers various government loan programs for those who may not be eligible for the grants or those who want to mix the two. These include:
- No Interest Government Loans
- Low Interest Government Loans
- Guaranteed Government Loans (also called secured loans)
- Conditionally Repayable Loans
While it may be scary as a new startup to consider borrowing money, the government options are created to help you start up and run your business while keeping the repayment terms acceptable.
Ontario Government Loans Explained
The loans provided by the Ontario government are much more favorable than those from traditional bank lenders. In most cases, they are much easier to obtain.
While not everyone is eligible to get a government loan to run their business, there are many options to consider.
Low Interest and No Interest Government Loans
Much like traditional banks, the loans provided by the Ontario government work the same way. You borrow what you need with set terms and you repay the amount back.
The low interest loans are provided by the government or backed by the government, which means that the interest rates will be lower or entirely removed.
As a small business, every dollar counts and the Ontario government contributes to these programs to help you lower your repayments.
Guaranteed Government Loans
A guaranteed government loan allows the Ontario government to act as your co-signer.
This means the government is taking on part of the risk with you if the business does not succeed.
With a government-guaranteed loan, a percentage of the loan is guaranteed by the government, leaving you responsible for the remainder.
Conditionally Repayable Loans
Conditionally repayable loans allow flexibility in repayment terms, interest rates, and schedules based on what best supports your business.
To see if your small business is eligible for any government loans, you can use the Funding Database and work with a funding expert.
You can also read about the difference between government grants and government loans to better understand your options.
How to use Ontario Small Business Grants and Loans
Government funding can be used for a variety of purposes depending on eligibility.
- Acquisition of a business
- Business development
- Training costs
- Equipment, tools, and machinery
- Business planning
- Marketing costs
- Startup or expansion costs
- Hiring costs and wage support
- Research and development