These funds often come in different forms of financial support, one being free government grants for small businesses.
One of the questions that often gets asked is “Are there free government grants for small businesses”, and who qualifies for grant money?
Are there free government grants for small businesses?
While the “government grants” situation is a bit more complicated then a simple “Yes answer”, there are free grant programs available for Canadian small businesses.
Government grants are often divided into a few different types of programs including:
- Non repayable government grants
- Partial contributions
- Conditionally repayable
- One time and renewable
Knowing and understanding these government grant program types can help you and your small business secure a free government grant for your small business.
Non repayable government grants
The non repayable government grants are free government grants for small businesses across Canada to take advantage of. These programs are exactly as they sound; money that the government of Canada provides your small business which you never have to repay back. The reason this type of program exists is to help entrepreneurs across Canada to create jobs and stimulate the economy.
While a non repayable government grants is one of the best forms of free grant money, they are also one of the more difficult programs to qualify for since the qualification criteria is much more strict.
Partial Contribution government grants
The partial contributions are very helpful free government grants which a business programs which are pretty much the same as the non repayable govenrment grants, however you as the business owner are required to provide a percentage of the total (more, less or the same – depending on that program and your needs). The government will provide a non repayable grant to you based on that percentage.
While the program is an excellent program to opt for free funding, many startup owners avoid it and due to the required partial contribution requirement.
Conditionally repayable government grants
While this type of grant funding is generally seen more of a “loan” due to the fact that the funds eventually have to be paid back; the are also excellent program types since you are provided funding which you do not have to make interest payment or principal payment until a per-determined condition is met. This can often be negotiated but something like no payment for 3 years, or no repayment until profitable could be seen as optimal conditions.
One time and renewable government grants
The one time and renewable government grants are programs offered by the government to help small business owners fund a specific project or purpose. These funds are also seen as free government grants money that are provided for that one project which can often be reoccurring annually. Once you’ve been accepted to a program such as this, you can always go back and re-apply for additional funding – considering the conditions are the same.
This summarizes the main types of free government grants for small businesses in Canada.
Generally, the non repayable government grant options are the best but if you are accepted into any of the above mentioned, they are excellent way to get your small business funded.
Who qualifies for the free government grants?
Each program offered by the government that focuses on providing entrepreneurs with free grant money has it’s own criteria and requirements which they follow and want individuals applying to follow in order to be eligible.
These requirement can often be as simple as:
– Be in the right location which the program funds (city, province)
– Provide a product/service in the correct industry
– Require the funds for a specific need or purpose
And others such as ensuring you have a solid business plan, acceptable credit, that you apply to the correct program, on time and with all requirements.
While not all free government grants for small businesses are the same, it is best that you take the time to learn about and understand the program you intend on applying before you do apply.
I WANT START A BUSINESS IN...
IS THERE HELP IN MY INDUSTRY?
- Expansion Capital
- Funding For Equipment
- Business Acquisition Funding
- Consulting Services
- Hiring & Training Staff
- Management Support Services
- Professional and IT Services
- Transportation and Warehousing
- Accommodation and Food Services
- Culture and Recreation
- Finance and Real Estate
- Forestry, Hunting and Fishing
- Health and Social Assistance