Like most of the developed countries, the government of Canada also offers substantial assistance and avenues for jumpstarting their business for the budding entrepreneurs. Especially, government grants are conveniently available for all types of small business enterprises. One would come across ads floated by the government stating “Canadian Government business grants is now available for your small business” and they are found in the print, electronic, and web media very often.
Requirements of Grants
Entrepreneurs in Canada may be in need of money for starting or running their small business and therefore might be looking for grant, loans, and any other form of financial assistance. Most of the requirements include –
Purchase of new equipments;
Setting up the new establishment;
Remodeling or renovating the old establishment;
Replacement of machineries and furniture;
Research and development works;
Training and orientation;
Advertising and publicity; and
Various other purposes relating to business.
Government of Canada has opened up sources for all of them and has taken a friendly and sponsoring attitude towards these business enterprises with the realization that they are vital for overall improvement of the economic condition of the country by providing various Canadian Government business grants.
Commitment of Government
One of the advantages of budding entrepreneurs is that the Canadian Government is committed to supporting the entrepreneurs.
Every year the government sets aside a large budget for the purpose of funding programs that includes grants as well as loans for small business enterprises. Since free Canadian government business grants that need not be paid back are also available for the purpose, it would be prudent for the prospective entrepreneurs to take advantage of these grants that can help resolve most of their financial problems of starting or running the small business enterprise.
How Grants and Loans Help?
Grants offered by government are in the form of incentives to small business and as they need not be paid back they are certain boost for the small business looking to start or renovate.
Though loans are to be repaid, government loans usually carry lower interest rates and easier repayment structure being welfare activity by nature. Hence it would be good in comparison to obtaining loans from the private lenders.
Most of the grants and loans are channeled through the respective state governments and it would be necessary to have a look at what the state government concerned offers and what the legal requirements in the particular states are; since they vary considerably.
Purpose of Grants
Purposes for which Canadian government business grants are ordinarily sanctioned by Canada Government for the small business sector includes the followings.
At times the grants take the form of re-payable low or no-interest loans, non re-payable grants; tax refunds and credits, and other coverage. Information on the loans and Canadian government business grants are also available from the concerned state department websites.
One time grants and subsidies;
Renewable grants and subsidies;
Tax refunds or tax credits;
Insurance by government covering business risks;
Guaranteed purchase by government of the products or services;
Free information and services by government;
Conditionally repayable contributions;
Grants in lieu of the property taxes; and
Most small business owners are afraid to get canadian government grants. But with our easy-to-follow advice, one can get write a government grant proposal that will dramatically increase the chances of approval.