What is a Canadian small business grant?

A Canadian small business grant is funding given by the government or a private organization to entrepreneurs who are either starting or expanding their business. Commercial grants in Canada do not have to be paid back, but often come with rules on how you can spend the money. Business financing can be very difficult to obtain. Before you apply for a business grant, there are certain things you should know.

Things to consider when applying for a small business grant

Getting a small business grant in Canada is not easy. If you’re considering applying for one, there are a few things you should remember:

• They’re restrictive. Each commercial grant in Canada is given with a specific purpose in mind, and applicants must meet strict eligibility requirements. Make sure you meet all the requirements before you apply.
• They take a lot of time. Applications for commercial grants in Canada take a lot of time and effort to fill out. It might be good to consult a professional for help when applying.
• Response times can be slow. It can take a few weeks or a few months to get a response when applying for a business grant in Canada, so be patient.
• They’re highly competitive. Small business grants in Canada are highly competitive. This is another reason why many people choose to hire an expert when applying.
• There are a lot of rules. There are usually strings attached to any commercial grant in Canada. Some might require a matching loan to supplement the grant, while others require progress reports on the business.

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Federal small business and startup grants

The Government of Canada offers many different avenues for business financing in order to keep the economy growing. By giving business grants, Canada can support its economy and expand Canadian innovation. Commercial grants in Canada fall under the following four areas:

1. Research and development: small business grants that support research and product development in areas such as climate change or medical technology.
2. Exporting grants: grants given to businesses that are trying to sell their products overseas.
3. Non-profit: business grants given to non-profit organizations so they can continue to run their programs.
4. Wage assistance programs: small business grants that aim to help business owners pay labour costs.

Provincial and local government grants

Small business grants in Canada can also be set up by the provincial or local government. These are commercial grants that help meet a specific local need. When looking into business financing, it could be easier to gain access to business grants that are provided by provincial or municipal governments. Provincial commercial grants focus in on local innovation and job creation, meaning you can often find grants that are specific to your industry. For example, a City of Toronto grant focuses on social enterprise, while a small business grant in British Columbia will give money to businesses working in natural resources and applied sciences. Both of these business grants would only be open to local residents, lowering the competition. Local small business grants in Canada can also be aimed at helping women break into entrepreneurship. It can be difficult for women to find the business financing to start their own business, so local governments have found ways of helping them. In order to promote women in technology, for example, the BDC Women in Technology Venture Fund gives business grants to women in that specific field. Another example of business grants in Canada that work on the local level are those aimed at historically underrepresented groups and the LGBTQ+ community. There are many different grants that are aimed at specific groups who might find it difficult to start their own business. By creating commercial grants for specific communities, the local government can support their residents while fostering economic growth.

Resources for finding a small business grant in Canada

It can be very difficult to find the right business grant for your company as there are so many choices. The following resources can help you narrow down your search.

• Canada GrantWatch A searchable database of Canadian small business grants. The site also provides up-to-date news and information about the latest available funds.
• Canada Startups funding database Information and access to over 800 government commercial grants and loans. You must pay a membership fee to search the database.
• Business Benefits Finder A searchable database of provincial and territory-specific programs and services to help you find loans, grants, and other business financing options for your small business or startup.
• Funding programs for employment and social development A list of links to Canadian government commercial grants and contributions that help support jobs, training, and social development.
• Fundingportal Fundingportal helps you find business financing from 11,000 government grants and business incentive programs in Canada, the US, and the UK.
• Futurepreneur Canada The only national, non-profit organization that provides business financing, mentoring, and support tools to aspiring small business owners aged 18 – 39.
• Government of Canada business grants and financing Gain access to information on all Canadian government grants, loans, private and public sector financing, and leveraging personal assets.
• Mitacs You’ll find a list of programs and business grants available for projects that connect Canadian academia, industry, and the world.
• Indigenous business development Information on starting an Indigenous business and commercial grant resources.
• Startup Canada grants and programs Startup Canada offers two startup funds, an international startup competition, and many supportive startup programs and awards.

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