<\/p>\n\n\n\n
While there is no such thing as \u2018free money,\u2019 receiving a business grant is the next best thing. All they take is your time and preparation in accessing them. So, as you consider your financing mix for starting, buying<\/a>, or expanding your business you need to consider the available Canadian small business grants from all levels of governments and a few private foundations. In this article we\u2019ll explore some of these grants and how to access them.<\/p>\n\n\n\n To start with, it is important to do a little research about which grants are out there and which might apply to your business. There are a few good search tools to find business grants in Canada including from Government of Canada<\/a>, the Ontario government<\/a>, and the BC Government<\/a>. Other provincial governments will have their grants listed on their respective websites. In addition, there are organizations that help entrepreneurs that have links to various grants as well. And don\u2019t forget to check out your municipal website as some municipalities offer business grants as well.<\/p>\n\n\n\n Most of the available grants relate to the priorities of the government or organization that is extending the grant. There are business grants that relate to employment and training, innovation, agri-food, tourism, environment, exporting, business grants for women, Indigenous peoples, as well as other priorities that the specific government has. Keeping in mind that government priorities will be important as you write your grant proposal as this is how applications for a specific grant will be assessed.<\/p>\n\n\n\n David Kincade of Alberta Business Grants<\/a> advises that you \u201cyou speak to the grant agency before you write a grant application.\u201d David recommends that you ask them six questions including checking if \u201cyou\u2019re eligible for the grant, whether there are still funds available for the year, when is the deadline and are they accepting applications, how competitive is the program, and if the grant officer can offer any advice on applying for a specific grant.\u201d<\/p>\n\n\n\n There may be grants for hiring new people from the Government of Canada or a specific province with such grants typically being for students or disadvantaged groups. Also, the Government of Canada has made agreements with the provinces to provide grants for training programs. For example, Alberta companies could be eligible for a training grant where the government contributes two-thirds of the cost to a maximum of $10,000 per trainee per fiscal year or up to $15,000 for a new hire that was previously unemployed (learn more about the Canada\/Alberta training grant at https:\/\/www.alberta.ca\/canada-alberta-job-grant.aspx<\/a>). Similar grants would be available in other provinces as well as this training grant is a partnership between federal and provincial governments.<\/p>\n\n\n\n At the time of writing, there were no specific business grants for women directly from the Government of Canada, but Start UP Canada<\/a> offers a Women Founders grant for female entrepreneurs with STEM orientated businesses. Women entrepreneurs should also check with their provincial government to see if there are any female entrepreneur specific grants available.<\/p>\n\n\n\n Indigenous entrepreneurs should check for grants at all levels of government plus at their First Nation. In addition, there are the Crown-Indigenous Relations and Northern Affairs Canada grants and loans through one of the Aboriginal financial institutions<\/a> in Canada.<\/p>\n\n\n\n Both the Canadian and various provincial governments offer innovation grants to businesses. These innovation grants are not necessarily for technology companies only but instead are targeted for businesses that are conducting research and development (R&D) to create innovative products, services or processes.<\/p>\n\n\n\n Eileen Ashmore MBA, from Strategic Timelines Inc.<\/a>, who assists technology driven businesses, says that \u201cinnovation grants are mostly for a first of kind innovation versus an improvement that makes a process or product operate more efficiently.\u201d<\/p>\n\n\n\n The federal government offers grants through the National Research Council\u2019s Industrial Research Assistance Program (IRAP). IRAP supports innovation with technology uncertainty and typically funds the R&D portion of the salaries of employees and the fees of contractors who are working on the R&D project. Some direct R&D costs may also be covered.<\/p>\n\n\n\n Different provinces offer different innovations grants but there may be complimentary aspects to federal government and provincial innovation programs. For example: Alberta Innovates provides ten different programs for SME\u2019s. The Alberta Innovates program offers some complimentary elements to the IRAP program because it pays for contractors (not employees). The Alberta program and the IRAP program are therefore able to fund different parts of the R&D process. So it is important to check out what your province funds and compare it to what the federal government funds as combining grants (where permitted) can greatly lower your R&D costs.<\/p>\n\n\n\n Entrepreneurs applying for innovation grants need to remember to include government priorities as they fill out their grant applications. Eileen Ashmore points out that grant applications may not be successful if they are not written to \u201cposition the application in terms of government priorities such as job creation, economic growth, partner impact, supplier impacts, and community impacts.\u201d According to Eileen \u201cit is important to completely answer each question in the grant application.\u201d She reminds us that government grants follow a competitive process and those applications that align best with the purpose of the grant and the priorities of the funder will be more successful in securing grant funding.<\/p>\n\n\n\n The scientific research and experimental development tax incentive (abbreviated as SR&ED or SRED) program is administered by the Canada Revenue Agency<\/a> (CRA) and is designed to encourage Canadian companies to conduct R&D. Eligible R&D costs can be given a tax deduction, investment tax credit, and\/or refund of between 15% to 60% of the cost of the R&D expenditures. These deductions can be claimed on previous expenses for 3 years and carried forward for up to 20 years (once the application is filed with the CRA).<\/p>\n\n\n\n Like many other tax programs there are specific rules for what expenditures can qualify. According to Jack Goodman at Canada SRED Grants <\/a>\u201csome people don\u2019t apply because they think their R&D activity won\u2019t qualify\u201d or they \u201csee the lengthy application and shy away from the program.\u201d But Jack says that the \u201cprogram can be worth the extra work as it helps to lower the overall costs of R&D for companies.\u201d The SR&ED program covers costs for salaries, contracts with Canadian contractors, and materials for R&D that bought in Canada. Jack advises his clients to prepare for filing for SR&ED by \u201cholding onto their T4\u2019s for employees involved with R&D, invoices related to R&D materials and contracts, as well as having your accountant prepare their financial statements.\u201d<\/p>\n\n\n\n While there are government grants for small business they generally fall upon priority areas of the government that is providing the grant. In addition, there are some private organizations that offer business grants though readers should be cautioned that there are also scams out there as well. So take the time to research which grant(s) may be applicable to your business, to speak to the granting organization, and to prepare a well-developed application and you could be on your way to receiving a business grant.<\/p>\n\n\n\n Connect4Commerce offers entrepreneurs and small business owners across the country a convenient and comprehensive place to connect, exchange goods and services, and advance their businesses. Be sure to check out further articles in our Business News blog for additional business tips<\/a> and resources as well as find professionals<\/a> on our site that can help you grow your business.<\/em><\/p>\n\n\n\n
Hiring and Training Staff:<\/h3>\n\n\n\n
Grants for Women and Indigenous Entrepreneurs:<\/h3>\n\n\n\n
Innovation business grants:<\/h3>\n\n\n\n
SR&ED Grants (often said as \u201cShred\u201d):<\/h3>\n\n\n\nRelated Articles and Posts:<\/h2>\n\n\n\n