Funding: Canadian Grants for Small Businesses

Grants for small business ts may be the best way to get funding

Smaller businesses and startups have a huge list of challenges to face, but money may be the most crucial.

A company without a financial source will probably be in debt quite soon. There are many ways a business can obtain funds that may be combined to offer more stability to the capital.

While revenue is the main source of cash for a business and is extremely important for it to be sustainable, it is not very realistic to estimate a starting company will have this type of income right away.

This is why business owners look to loans to launch their companies and ideas off the ground. However, after the Covid-19 crisis, many established organizations had financial problems and had to look for funding again.

To help you choose the best choice for your business, we took the time to explain the different options and efforts.

Crowdfunding

Crowdfunding platforms are popular with inventors, entrepreneurs and the general public. They’re easy to set up, and you can gather donations from all over the world.

Investors can either contribute altruistically or receive benefits such as assets in the company or products and services once they launch. And the biggest advantage of crowdfunding is that there is no need to pay back investors.

Angel Investors

This type of investment is called “equity investment”, where the people who provide funds do it for a share of the company. Angel investors can be friends and family of the business owners.

This can be a one-time investment to assist a firm get off the ground or continuous funding to support and sustain the company through its early or difficult phases.

Different loans

The most traditional way to get a company going is getting a loan from the bank. Companies have many options to get loans: you may receive both long-term and short-term loans from online-only lenders, with terms ranging from one to 25 years, in addition to typical high-street banks.

Loans, however, may need a credit check on the business owner and may not be available for everyone.

One of the easiest ways to get a loan is looking for a Government one or exploring options abroad.

Grants for Small Businesses

Grants are another traditional way of getting funds, but the main difference from a loan is that there is no need to pay back any money.

A grant is a monetary reward given by the government to an individual or organization for the sole purpose of assisting in the completion of a project that will benefit the Canadian public. Unlike monetary gifts, which can be used for any purpose by the receiver without any restrictions, grants for small businesses, or any size of companies, are subject to strict government guidelines.

This may be the best way to get funding for a few reasons:

  • You don’t depend on private money from other companies or individuals;
  • You don’t have to expend time and personal gathering donations, like in crowdfunding;
  • You don’t need to pay back the government and don’t owe any fees;
  • If you are part of a minority or run a non-profit organization, you have better chances;
  • You don’t need to give away any share of your company;
  • After the Covid-19 pandemic, the Canadian government has extended the grant options;
  • And finally, there are options tailored for your needs, like wage subsidy or research and development funding.

The government website also has a helpful Business Benefit Finder to discover what type of grants you can apply for.

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

More To Explore

Do You Want To Boost Your Business?

Leave us a message and we'll be in touch!