There’s nothing like doing business in this world, where you are your own boss, you get to take your own decisions, make your own strategies and create your own status. However, as they say, with power, comes responsibility. You need to keep a lot of things in mind before planning your own business start-up. Starting your own small level business can be a significant step forward to your own empire. Don’t you worry, the Canadian government has your back when it comes to grants for small businesses.
Let’s have a look at some of the most frequently asked questions regarding government grants for small businesses:
1. What is the eligibility criteria for receiving these grants ?
To receive a small business loan from the government, your company’s gross revenue should be not more than $10 million. Moreover, there are certain areas over which the loans can be financed. They include:
- Real estate assets for commercial purposes
2. What are the most popular government programs for small businesses?
The government has a lot of things for you if you are ready to set your foot on a long business journey. Some of the most popular ones are:
Self-Employment Program: This includes an income support from the government. The government would also bear your assistance and living expenses for as long as 26 weeks. For physically challenged people, the stipend can go on for 78 weeks.
Summer Company: Specially dedicated to the students, this program involved providing the students with a grant of around $3000. Not only the money, the government makes sure that the students avail a hands-on training as per their requirement.
Export Market Access: This program aims at providing the small businesses with the funds to be able to export their products for a lower cost.
3. What is the maximum amount I can acquire ?
The maximum amount that can be acquired under any government loan is $1 million. Moreover, there are limits of expenses under this amount as well. You can only spend at most $350,000 on your equipment and demesne.
4. What role does my financial performance play?
The finance of your small business needs to be sound in order to receive the grants from the government. Proper documentation of your financial aspects is extremely important. There should be a complete transparency in presenting your finance to the government body. They usually ask for your balance sheet and an income statement. If they are satisfied with the documentation and other details, they would grants the loan easily.
5. Do the government grants support global expansion?
Again, it depends on how well you present it to them. The motive of the government is to keep as much talent as possible in our homeland. If your business expands globally, keeping most of its linking with Canada only, they would not hesitate in supporting that. You need to keep this thing in mind that if your business goes international, it should be entirely based in Canada only.
6. How are the start-ups dealt with?
Though there are provisions for start-ups as well to receive grants, the already established small manufacturing enterprises end up having a bigger say in these grants. However, the conditions have improved of late and more and more start-ups are getting sufficient funds, yet there’s a long way to go.
To receive a non-repayable fund (business grants), the company needs to be at least 2 years old. Bagging a grant for start-ups is indeed a tough task.
The bottom line is that it is you who has to take the initiative and if you are really determined to build your business empire, no one can stop you. Hope the FAQs gave you the right idea about the scenario.