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Toronto Small Business Grants 2022

by Tyler Bailey
24 March 2022

As a small business in Toronto, starting 2022 after the pandemic is no easy task. However with the pandemic behind us, the city of Toronto, as well as the province of Ontario with the support of the federal government of Canada have created a number of small business grants to assist with the bounce back.

Many of these available small business grants for 2022 are not covid related, but on-going government support from the local Toronto government, provincial government of Ontario and the various federal agencies. 

These funding options, while many are small business grants, can also come in the form of government loans, tax breaks, tax credits and assistance options.

In this article, we will be focusing on the Toronto Small Business Grants for 2022.

Toronto Small Business Grants 2022

The city of Toronto has a number of small business grant and funding programs that help businesses across Toronto and the GTA succeed with their business. 

While grants often mean non repayable funding that the government has to offer, it is important to know that there are various government grant types.

Knowing the various types of small business government grants is crucial to ensuring you can pick the best funding option for your small business.

The various small business grants for 2022 include:

  • Non repayable government grants
  • One time and renewable government grants
  • Partial contributions

These 3 government grant types are often the most popular and the most commonly offered grant options across Toronto.

Non Repayable Small Business Grants

The city of Toronto has several small business grants that are available to entrepreneurs looking to startup or expand their business. These government grants come in the form of a non repayable small business grant. 

These grants are exactly what they sound like – non repayable. 

Meaning, the money you obtain from the Toronto government agencies, is money you can use towards your small business but don’t have to pay back.

The non repayable government grants can be used for various funding purposes, however there are certain criteria that small businesses must meet in order to be eligible for the non repayable options.
To see all available government grants that are non repayable, consider using the Funding Database provided to Ontario residents in the Ontario Startups platform.

One Time and Renewable Government Grants

Another popular type of government grant programs in 2022 that many small businesses in Toronto are already using include the one time and renewable government grants.

These grant options are also considered non repayable options, however the reason for the “one time and renewable” name is due to the fact that these grants are often there to fund a specific purpose your business has – once, or on an on-going basis.

Most of these types of grants are hiring, wage support options, on-going training for employees..etc – as they may be occurring in a business.

While not everyone is eligible for a one time or renewable government grant, to ensure you can apply, it is a good idea to determine what your funding needs are in the first place, as the first step. Once this is done, it is key to figure out what each of the funding agencies providing the one time options actually focus on – and follow the lead.

Partial Grant Contributions

The partial government grants are another popular form of government grants that the city of Toronto and the province of Ontario is very keen on offering small business owners.

Much like the non repayable government grants, the partial grant contributions are free money that comes from the government towards a small business owner to use for various startup funding needs.

owever, the partial component of the grant is that the government provides a certain percentage of the needed funds, while you as the business owner has to come up with the rest.

In some cases the partial grants may ask for a 80/20 % rule; while in some cases it may be 50/50, or similar.
If you as a small business owner and you are unable to come up with the funds, you most likely will not be eligible for this type of funding option.

To see all government grants for small businesses in Toronto, consider using the Funding Database provided by Ontario Startups.

What can the Toronto Small Business Grants be used for?

With the availability of the various small business grants provided by the Toronto government, you may be asking “is my business eligible”, and if “what can you actually use the government grants for”?

If you are starting a small business in Toronto, or the GTA, you may be eligible for these grant options.
Most of the government grants that are handed out are provided based on a number of factors. These factors vary, however your location, industry and your specific funding needs are what is considered the most.

Majority of the funding options help with training costs, hiring staff, paying wages, going green and are used towards benefiting a business that has a greater purpose, or that serves more than just the business itself, such as the community the business is in, or the economy the business supports. 

To determine which government grant your small business in Toronto may be eligible for, contact a Ontario Startups small business expert to get a narrowed down list.

business grant
Funding

A business grant that you don’t have to pay back

by Tyler Bailey
22 March 2022

Most small business owners when seeking government funding often worry about paying the funds back.
When starting a small business in Ontario, you already have to consider the startup costs, the expenses to operate your business, the taxes you have to pay, so having additional expenses such as a government repayment, is the last thing you want to consider.

While government funding options are often more favorable for small businesses to consider over the traditional bank loans or private funding terms, your best bet is to go with a non repayable government grant if possible.

A business grant that you don’t have to pay back

First of all, is there a government grant that you don’t have to pay back if you take it from the Ontario government, or the federal government of Canada?

The short answer is, yes; there are various government grants that are non repayable – meaning, it is money that you don’t have to pay back!

These government grants are often called the non repayable government grants, partial contributions or the one time and renewable grants.

The grants that are provided can come from the local Toronto government office, the provincial Ontario government agency, or the federal government of Canada. 

How can the government afford to not ask for a payment?

The government never loses. 

As you get into business and either borrow money from the government in the form of a government loan, or obtain a government grant that you don;t have to pay back, the government still benefits.

If you don’t pay the funds back directly to the government, you will still use those funds you borrow to pay taxes, to hire staff, staff that will end up paying taxes; as your business grows and succeeds, so does the government!

Is there a chance you will be asked to pay the grant back?

Most government grant programs are non repayable, however if you go off track and use the funds in a different way than initially intended, you are breaking the agreement with the government, meaning you are at risk of being asked to pay the funds back, often with a penalty.

Remember, if you are applying for a government grant for hiring and training costs, and you end up using the grants towards rent, equipment purchase and travel costs, it is going against what you were approved for – this can result in the funds being asked back.

As long as you use the funds towards the exact purpose you initially applied for and what you were approved for, you have nothing to worry about.

Are these government grants taxable?

The government grants your small business receives in Ontario will be considered taxable income for the business. This means that you will be on the hook for having to pay the taxes on the corporate earnings, including the amount you obtain the funds for.

While there are certain ways to avoid the income tax on the grants obtained, in most cases, you will be on the hook!

How do you apply for the non repayable government grants?

With any government funding program, be it a grant, a government loan or any financial assistance provided by the Ontario government, to be eligible you have to meet the criteria each program set up.
These criterias depend on many factors, generally starting with your location, industry and the specific needs you require.

It is always recommended to have a business plan that clearly explains your business model, shows your growth strategy, projects your financial situation at least for 3 years, and clearly shows how you will benefit from the funds you are applying for.

To get help from the Ontario government in the form of a non repayable government grant, consider using the Funding Database at Ontario Startups to locate grant options your business may benefit from

Toronto Government Funding Programs
Funding

Government Funding for Toronto Small Businesses

by Tyler Bailey
21 March 2022

For small business owners across Ontario, especially in the city of Toronto and the Greater Toronto Area, there are a number of government funding programs for small businesses to benefit from.

The available government funding programs range from government grants, government loans, to tax breaks, credits and other incubator and accelerator programs that businesses across Toronto may benefit from.

Many of these government funding programs help support small businesses owners across the various sections, including those within the digital media space, healthcare, food processing, retail and many more industries.

While many government funding programs are offered Ontario wide, many of these are specific to Toronto based industries, demographics and have a special economic purpose.

As a small business owner in Toronto, consider getting help from Ontario Startups and utilizing the Funding Database to access all available government funding options for your small business.

Government Funding for Toronto Small Businesses

Below you will find a number of government funding programs for Toronto small businesses. If you are a small business owner looking to get access to funding for your small business, to startup or to expand, utilize the below list to get a head start with your funding search.

If you are looking for expert assistance to help narrow down which funding programs your Toronto small business may be eligible for, work with an Ontario Startups expert today.

Angel Investors and Venture Capital

Angel Investors Ontario  – Angel investing is more than just funding small businesses. It goes way beyond, providing small business owners in Ontario with the assistance they need with their startup businesses, in order to succeed and grow.

Angel investors groups in Ontario:

Funding for the Arts, Culture, Film and Television

Canada Council for the Arts Canada Council for the Arts government grant programs help Canadian small business owners who are artists and art organizations.
Government of Canada  Government of Canada – Canadian Heritage offers a variety of government funding opportunities including the Canada Book Fund, Canada Music Fund, Canada Media Fund, Canada Periodical Fund and many more. You can access these funding options right on the government website, or all in one place in the Funding Database available via Ontario Startups.
Ontario Arts Council Ontario Arts Council provides granting programs in different categories such as Art Education, Crafts, Dance, Literature, Media Arts, Music, Theatre, Visual Arts and more.
Ontario Media Development Corporation The Ontario Media Development Corporation, commonly known as Ontario creates, focuses on encouraging strategic business partnerships among the converging cultural media industries, including film and television production, book and magazine publishing, sound recording and interactive digital media. 
Socan Foundation Socan Foundation provides funding for Canadian small business music creators.
Toronto Arts Council Toronto Arts Council (TAC) provides grants to artists and arts organizations.

Government Funding For Black Entrepreneurs in Ontario

Black Entrepreneurship Loan Program This government funding program, provides government loans up to $250,000 to Black business owners and entrepreneurs. These loans can be used for capital investments, working capital, short-term receivable financing.

Funding for Indigenos Business Owners in Ontario

Waubetek Business Development Corporation Waubetek Business Development Corporation delivers business financing and economic support services to Aboriginal entrepreneurs and First Nation communities.
Nishnawbe Aski Development Fund Nishnawbe Aski Development Fund (NADF) offers a variety of services to support Aboriginal business and economic development, including financing, business support, community planning, and workshops and bookkeeping training.
Indian Agricultural Program of Ontario Indian Agricultural Program of Ontario (IAPO) offers small business financing to support First Nations entrepreneurs and businesses. Funding is offered for equipment, business start-up and expansion, commercial real estate financing.

Government Grants For Hiring/Wage Support In Ontario

Ontario Apprenticeship Programs The Province of Ontario provides employers with financial incentives to train apprentices. This funding comes in the form of a grant.
Apprenticeship Training Tax Credit Apprenticeship Training Tax Credit is a refundable tax credit available to employers or sponsors who hire and train apprentices in certain skilled trades.

Innovation and Technology Funding Options In Ontario

Agrilnnovation Program The government funding program is designed for small businesses in Ontario, with the agriculture sector, and provides government grants or loans for research and development of a new agricultural product or technology.
Collaborative Research and Development Grants Collaborative Research and Development Grants support research projects in natural sciences or engineering by covering part of the project costs.
MaRS – Investment Accelerator Fund Investment Accelerator Fund for life sciences, cleantech, ICT or digital media enterprises, is a seed fund program, provided by the Province of Ontario, that helps emerging tech companies bring their product and services to market.
Natural Research Council Canada The Industrial Research Assistance Program (IRAP) provides funding to qualified firms and their innovative research and development projects.
Ontario Centres of Excellence – Collaborative Commercialization Programs Ontario Centres of Excellence – Collaborative Commercialization Programs bring universities, industry and government together to help turn science and technology into successful business endeavors.
Ontario Innovation Tax Credit If you are an owner of an Ontario-based corporation you may be eligible for a 10% tax credit on research and development carried out in Ontario for your business.
Scientific Research and Experimental Development The Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive program to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada. The Canada Revenue Agency, responsible for administering the program, offers tax credits for expenditures such as wages, materials, machinery, equipment, some overhead and SR&ED contracts.

 Market Expansion Funding

Business Development Bank of Canada Business Development Bank of Canada (BDC) Xpansion Loan helps Canadian companies with up to $100,000 in long-term financing.
Ontario Chamber of Commerce Ontario Exporters Fund assists SME’s increase access to international markets.

Small Business, Government Loans In Ontario

Access Community Capital Fund Access Community Capital Fund (ACCF) supports entrepreneurs with viable business plans with financing not available from other sources. The borrower may have no credit history, or may have a poor credit record due to unemployment, illness or unforeseen life events.
Futurpreneur Futurpreneur offers aspiring entrepreneurs between the ages of 18 and 39 access to up to $15,000 in start-up financing and up to $60,000 in additional financing through a partnership with the Business Development Bank of Canada.
Opportunities Fund for Persons with Disabilities Program Opportunities Fund for Persons with Disabilities Program helps people with disabilities prepare for, obtain and maintain employment or self-employment.
Rise Asset Development  Rise Asset Development (Rise) provides loans to entrepreneurs with a history of mental health and /or addiction challenges. Rise operates with the support of the Rotman School of Management and the Centre for Addiction and Mental Health (CAMH).
The Ontario Catapult Microloan Fund for Social Enterprises The Ontario Catapult Microloan Fund for Social Enterprises is about enabling social entrepreneurs and innovators to turn their ideas into reality by supporting promising early stage ventures with access to capital. This microloan fund is administrated by the Centre for Social Innovation (CSI).

In addition to the above government funding options for small businesses in Toronto and across Ontario, it is important to consider additional options that the Ontario government has to offer. Keep in mind that provinces outside of Ontario may fund business expansion into Ontario; as well, the Federal Government of Canada has options that small business owners may consider to fund their business.

Ontario Government Funding For Franchise
Funding

Ontario Government Funding To Buy a Small Business or Franchise

by Tyler Bailey
11 March 2022

Ontario is a top province in Canada with 15 million residents – no wonder it’s the business capital of Canada.

The Ontario government funnels money into the economy to help boost entrepreneurship and to ensure that Ontario remains the business hub.

With that in mind, the Ontario government has a number of funding programs that help individuals purchase a small business or a franchise.

These funding programs, often categorizing this type of transaction as business acquisition exist to help Ontario residents; and those coming into Ontario with the purchase of a proven business model such as a franchise; or an existing business that already has traction.

Why, you ask?

Well, the Ontario government provides funding back into the province. Having additional businesses helps stimulate the economy by creating jobs. These jobs, result in additional paid taxes, creating a cycle that helps Ontario thrive.

Ontario funding programs to help with business acquisition

The various Ontario government funding programs that can help with the business acquisition will often come in the form of a government loan. While certain government grants exist, for business or franchise purchases, you are mainly looking at a government loan.

These loans can often be far greater than any business loans via banks or private lenders and can have better conditions and terms – to help you as a new potential business owner to succeed.

So, if you are considering buying a franchise, a Mr. Lube Oil Change Franchise let’s say; you may utilize the government options to help you take over this type of business.

If you are considering buying Joe’s Pizza Shop down the street; you may be in luck and potentially be eligible for a government loan to help with the acquisition.

While not everyone is eligible for a government loan, the more you know about the different types of government funding options in Ontario, the better.

The different types of government loans

When applying for a government loan to purchase a business or a franchise in Ontario, the different options may include; standard government loans that come with low interest or no interest. In addition to that, you may be able to take on a guaranteed government loan, or a conditionally repayable loan.

Each of these government loans comes with different advantages.

Low Interest or No Interest Government Loans

When considering buying a new business or if you want to purchase a franchise in Ontario, a government low interest or no interest loan may be the right option for you.

It is there to help simplify the process of acquiring the business by giving you the needed capital. Unlike a traditional bank loan, these Ontario government loans may be more favorable in terms of interest and repayment options.

Guaranteed Government Loans

The guaranteed government loans are a great way to get the needed capital to buy a business in Ontario. No matter if the business is a proven system such as a franchise, or an already operational small business; a guaranteed loan from the Ontario government may have our back.

The Ontario government or the agency that you are approved for would be the co-signer on your loan. This gives you an extra layer of security and protection with the borrowed funds as it means that the agency may be on the hook for a percentage of the loan if things don’t go as planned.

Certain government-guaranteed loans can cover as much as 85% of the borrowed money.

Conditionally Repayable Loans

Another great funding option to consider when buying a business in Ontario. The conditionally repayable loans will help you as a small business borrow the needed money to startup and launch your business – to start collecting the needed cash flow, allowing you time to pay back the needed loan.

The conditions of these loans are often negotiated based on your needs but can range from long terms loans to no repayment until profitable..etc

No matter the type of funding you decide to apply to remember that the key to any successful funding application is to have a solid business plan in place.

If you are buying a franchise, the funding agencies may be more lenient towards your application as they know that the chances of success with a franchise will be greater. Contacting your franchise to obtain a business plan, projected financials may be helpful so you don’t have to do it all.

If however, they don’t provide this to you, using a tool such as the Business Plan Builder may be of help to get the perfect business plan in place to help you apply for funding.

On the other hand, if you are buying an existing business in Ontario, the process may be the same. Obtain the business plan from the seller; or at the very least the financials to help you do your due diligence, but also use it to apply for any government-related funds to help with the acquisition.

Tips to remember:

To help you obtain the needed funds to assist with the business or franchise acquisition, follow the below tips for improved chances of success with the funding but also with your business takeover:

  1. Ensure you are not asking for 100% of the funds.
  2. Don’t assume that the funding agency knows the business or franchise. Have a plan ready.
  3. Remember that many funding agencies can help you after you take over the business as well; with various expenses that are part of operating the business.

If you need assistance in locating funding options via the Ontario government, speak to an Ontario Startups expert to see how much you may be eligible for to help you take over a business or franchise.

Ontario Funding for Hiring And Wages
Funding

Ontario Government Funding For Hiring Staff/Employees

by Tyler Bailey
9 March 2022

As a small business in Ontario, be it an existing business one looking to startup, paying wages is often one of the key expenses your business has in order to sustain itself.

Employees are a must if you want to run or grow your business.

When it comes to the Ontario government, there are various small business funding options provided by the government directly that help with hiring staff, paying wages as well as providing training to employees.

These funding programs can come from the local government, provincial Ontario government as well as the Federal government of Canada.

If you are a sole proprietor, in business just for yourself, you may be able to cover your own wages or a percentage. As well, take advantage of funding options available to help you hire employees when needed.

As a corporation, there are various funding options from the Ontario government and the federal government that may assist with the wage support of your staff, new and existing employees.

Different types of hiring and wage support options

The Ontario government has different types of programs that are available to help you as a small business owner hire and take on staff.

Through various options from government loans, government grants to tax breaks and credits, these funds can assist your small business in utilizing the added help, while keeping your costs lower; and having a percentage or full costs paid for.

Certain wage coverage options may help with as much 85% of the wage; while others pay wages in full if you are in a trade industry, providing a crucial service and teaching a skill.

In terms of hiring staff, as a startup business owner, you may be able to benefit from added funding options that can help you cover your own costs (personal living costs) while you focus on developing your business.

This is especially good if you are leaving a part-time or full-time job to start your own business in Ontario.

  1. Wage support for hiring new staff
  2. Wage options for hiring individuals with specific skills
  3. Programs made available to hire individuals who may be disabled, aboriginal, or fit a certain category that the funding programs may want to focus funds towards
  4. Wage options to help you cover your personal expenses while you start a business
  5. Seasonal wage support programs to help in various times of the year
  6. Student wage support programs to assist in hiring students
  7. Training programs; to help you pay wags of your employees and staff who are undergoing a training period while they learn a trade

How to access hiring and wage funding programs in Ontario

Before you can access any government funding programs in Ontario, be it to help you startup, pay for certain expenses, or to hire and train your staff, you have to have a business plan in place.

Your business plan is a must-have and should explain your business model clearly.

When creating your business plan, it should be geared towards the type of funding you are trying to obtain; in this case, funding to help you hire staff and pay for their wages.

Once your business plan has been completed; with a projected financial statement in place and a clear explanation of your funding needs, accessing these wage and hiring programs may pose a challenge.

They are difficult to find as they are offered on different levels of the government including the mentioned, local, provincial and federal government. Often via various agencies that provide the funds – making it difficult to conduct a proper search for the available options.

With that being said, the Funding Database here at Ontario Startups does have all options available in one place. Including all government grants, government loans, and tax options, to help you with wage support coverage as well as hiring costs.

Small Business Government Funding Uses
Funding

20+ Small Business Funding Uses that the Ontario Government Funds

by admin
7 March 2022

20+ Small Business Funding Uses that the Ontario Government Funds

If you have ever wanted to start your own small business in Ontario, it is crucial to know that various government funding programs exist that help fund small business owners across Ontario.

These funds, government-provided, come via the various levels of government, including local government offices; the Ontario provincial government, and the federal government of Canada. They all funnel money towards small businesses and entrepreneurship in the province.

Knowing how to take advantage will give you a step up towards success by securing the needed funds for your business.

So; what does the Ontario government cover in terms of small business funding?

While the funding needs vary from business to business, the various agencies that fund Ontario small businesses focus on a number of activities, as they categorize them into 20+ different sections of “acceptable funds use”.

These 20+ different funding uses are not the only ones, but most others will fall into one of the mentioned categories.

20 Small Business Funding Uses that the Ontario Government Funds

Before you can apply for any funding in Ontario; be sure that you have a solid business plan completed. Your business plan should clearly explain your business model, show your business potential, list out the projected financial statements as well, breakdown your funding needs into the below-listed options:

  • Acquisition
  • Business Development
  • Training
  • Consulting Services
  • Financing Services
  • Product Development
  • Job Creation
  • Equipment
  • Trade Shows
  • Exploration
  • Evaluation
  • Business Planning
  • Operating Capital
  • Renovations
  • Expansion Capital
  • Marketing
  • Business Startup
  • Productivity
  • Research
  • Wage Support

Most funding needs that you as a small business owner may have, will fit into one of the above-mentioned funding uses.

Funding Tip:

When you are asking for funding from a government agency, it is always a good idea to break down your funding needs into the specific funding uses that are listed above. The more you can break down your needs, rather than ask for a lump sum, the more options you may be considered for.

As you apply for government funding, the various uses that the Ontario government may fund is crucial to know and understand; not only in your search for funding but in the application process as well.

It is also a good idea to avoid falling for the most common funding mistakes.

Common Government Funding Mistakes (and how to avoid them)

Simple mistakes are often the cause of many failed funding applications.

The Ontario government has a number of funding options available to help small business owners. In fact, there are hundreds of funding programs available and they constantly change as well.

The # 1 mistake business owners make when searching for funding is searching for a “too specific”, or “not specific enough” funding need.

Example:

I need $10,000 to start my business.

  • While this seems to be a very simple and easy-to-understand approach, a funding agency may look at it and say “no”. Why? Well, since there are many different funding agencies, not all fund the “startup process”. Some fund marketing costs, some equipment purchase, some cover wages of staff and potential employees..etc”; but not all do the same thing.

A better way to approach this type of scenario is to breakdown your funding needs:

I need $10,000 in funding to start my business. With that, the following breakdown will help me accomplish my goals. I need $2,500 to cover training costs; $5,000 to purchase equipment and another $2,500 to pay for some marketing expenses.

The same idea; but broken down, utilizing the funding uses mentioned. This can allow you as a small business owner to apply for 3 potential program options. Options that cover marketing; training costs and equipment purchase.

Another example of a common mistake is asking for funding and being too specific.

I need $5,000 in funding to pay for the ladder on my work van.

If you are to contact any funding agency in Ontario and ask for funding to pay for a ladder on your work van; you will most likely be denied – or explained that there is no funding for that.

They are not wrong. There is no funding for a ladder on a work van – but there is funding for equipment purchase.

The key to a successful funding application and funding search is patience and a choice of words.

Don’t be too specific and don’t be too broad in your request.

If you need help and guidance, asking an expert at Ontario Startups what you may be eligible for is a good idea.

Top 5 government grant funding requirement
Funding

Top 5 government grant funding requirement

by Tyler Bailey
4 March 2022

As a small business in Ontario, you may have considered obtaining a government grant to help you with your small business start-up or expansion.

Government grants are available and are offered by the Ontario provincial government, as well as the federal government. These government grant programs are there to help small business owners succeed while creating and boosting the economy.

While every single government grant program offered is unique in its own way, some of the requirements including these top 5 usually remain the same across the board.

Knowing these 5 requirements to apply for government funding will ensure your chances of success of obtaining a government grant are much higher.

The top 5 government grant requirements include:

  •  The location you and your business are in
  •  The type of industry that your businesses in
  •  You’re funding requirements, or the specific needs that you have
  •  Your business plan
  •  The time of the year that you apply

Well, not all 5 requirements are required, the more of the requirements that you are able to meet, the greater your chances of success out of painting that grant will be.

Your location

One of the major funding requirements revolves around the location of your business.

This helps determine which funding agency you will be applying to. As government grants and funding can come from the local government, The Ontario provincial government, or the federal government of Canada, your location helps determine that.

Being specific in regards to your location when applying for government funding in grants will help determine and maximize your potential.

As a small business, you may be eligible for programs including those of the local provincial and federal government.

If you are unsure which programs you can apply for, including government grants, It’s a good idea to speak to an Ontario Startups expert.

Currently, the Ontario Startups funding database has over 1000 different government funding programs including government grants, government loans, tax breaks, and more. The experts also help you better understand the government grant funding requirements and how to apply.

Your industry

Just like your location, the industry that your business is in matters quite a lot.

Certain government programs will only fund specific industries. Being open or having an understanding of what industry you are in, your chances of success, and finding the relevant government grant will grow.

Some government agencies have a specific focus in mind. This focus may be on a specific industry. For example, many of the Alberta government grants will help within the agriculture or farming industry as this is more relevant to the community that they are in.

While there are different programs for different industries, some of these programs find multiple industries. There is a chance that your business will fit under multiple industries as well.

Your funding needs

One of the key factors that help determine your eligibility for a government grant, Is your need for funding.

  • How much do you need?
  • What do you needed for?
  • When do you need to by?

All of these are considered when factoring in which government grants you might be eligible for.

As mentioned each government agency has a different purpose. These purposes are how they focus on how they will dispuirse the available funds.

When applying for funding no matter what agency you are applying to, it is always a good idea to break down your funding needs.

Doing so will ensure that you can apply to multiple programs.

As an example, if your small business requires $200,000 start up funding, it is a lot easier to obtain that funding amount from various programs than from a single source.

To do so you have to break down your funding needs.

Instead of asking for $200,000 in a lump sum, you should break down the amount that you need into the specifics. How much do you need for your marketing costs, how much do you need for your equipment, how much do you need to cover your wages and so on and so on.

Remember when asking for funding it’s always a good idea to only ask for exactly what you need. Over asking may result in application denial. At the same time, asking for less than you need could result in your business not having enough capital to succeed.

If you need help determining how much funding to ask for, the Ontario Startups experts are there to help.

Your business plan

We talk about business plans a lot.

A business plan should be done. While it is optional, It really isn’t.

The majority of government funding agencies including those of government grants make it and make it a requirement that you apply with the business plan.

In most cases, nobody will give you funding for your business without having an understanding of your business plan or business model.

A business plan is created for multiple reasons. In this case, your business plan will be used as a document by the agencies to better understand your business model, your financials as well as to show your funding requirements.

While you can spend a few $1,000 paying for a professional business plan write-up,  it’s often not necessary. As long as you know how to put down your idea and briefly explain your requirements of a business plan, it will be good to go.

Using the Ontario Startups business plan builder tool will also help you develop your plan step-by-step and make it as per the expectation of government agencies.

Keep in mind that the Ontario Startups experts are also there to help you step-by-step through the process of building the perfect business plan that will help you with your government grant applications.

The time of the year

Deadlines that the various government agencies have can determine your likeliness of obtaining funding.

Are you applying too early, or are you applying too late; is a small factor, however one that determines the yes or no.

The majority of the government grant agencies have a deadline. These deadlines are set in place as a way for the government agency to properly budget.

Once the funds that are allocated are handed out to various business owners the government agency will close.

The closure might last a few weeks or a few months or the agency program may close for good. This all depends on the focus that the government agency has on that specific program.

When applying it’s always a good idea to check the program deadlines.

There are different ways government agencies check applications. Some, as soon as they get them so deadlines don’t really matter too much, but some do so at the end of the deadline, where the deadline is crucial.

The best way to ensure your success is to apply on time.

If you have a few days before the deadline is up, while you can risk it’s usually not worth the time.

The above are the top 5 government grant application factors that you have to consider. Keep in mind that each government grant agency has additional factors and requirements that you as a small business owner must meet. If you don’t meet the above requirements or don’t consider the above factors, your small business funding application may be denied

If you need guidance or need to have a better understanding and how government grants work, which grants you may be eligible for, or how to apply, the Ontario Startups experts are there to help.

Government Loans in Ontario
Funding

Government Loans in Ontario

by Tyler Bailey
28 February 2022

If you are deciding to start a small business in Ontario you may be considering certain government loans.

In most cases, capital will be required to start your business successfully. As a small business, you have dozens of startup expenses as well as operational expenses to keep your business running smoothly.

To cover these,  some sort of funding is required unless you have your own funds to start with.

Why do government loans exist

The Ontario government along with the federal government of Canada provides government loan programs to small business owners in order to boost the economy and give back. Ultimately the government benefits from providing you a loan, for a number of reasons.

  1.  The government gets their money paid back through interest.
  2.  The government gets paid back through taxes
  3.  By boosting the economy, you are creating jobs, and in other words your creating jobs for people who pay taxes.

No matter the type of funding that the government provides, they will not be losing money in most cases.

These government loans are provided to small business owners across Ontario and Canada and are there the help you succeed.

The funds can be used for a number of purposes including paying marketing costs, covering your initial startup expenses, the needed tools and equipment, hiring staff, and more.

Are you eligible for a government loan and Ontario

To determine whether you are qualified for a government loan in Ontario you have to consider a number of factors.

These factors vary from program to program as they do from business to business.

Your location, the industry that you are in, as well as the various funding needs that you have, are all factors in helping the government determine whether you are eligible for a government loan or not.

To see which government loan programs you might be eligible for your small business, use the funding database provided by Ontario Startups, and see all options available.

Before you consider applying to any government loan program you should have a business plan ready to go.

Your business plan should have an explanation of your business model, your marketing and growth strategy, your projected financials as well as a detailed breakdown of your funding requirements.

If you need assistance creating your business plan consider using the business plan builder tool provided by Ontario Startups.  It is a very easy tool to use plus you get expert assistance each step of the way

Different types of government loans in Ontario

While government loans are pretty much the same as a traditional bank loan they often come with better terms and have an extra layer of protection for you personally.

Government loans are some of the easier programs to get into, in comparison to government grants.

The different government loan types that are the most common include

  • No interest or low interest government loans
  • Conditionally repayable government loans
  • Government guaranteed loans

Each of these common government loan types has its pros and cons.

Depending on your small business and the very specific funding needs you have each of these government loan programs may be perfect for you.

No interest or low interest government loans

The government loans that have interest attached to them are much like bank loans. You borrow the needed money, a set term is in place, you pay back that money with interest.

These government loans are far better than any traditional bank loans simply due to the fact that they may have lower interest rates or better terms. This is all crucial information especially when you are starting a small business and every penny counts.

The no-interest loans provided by the Ontario or federal government of Canada are the exact same art same as the interest loans except they carry no interest. You borrow the money, use the money as needed, pay back.

Conditionally repayable government loans

These are some of the preferred government loans to apply for. Being conditionally repairable means that there is a condition placed on the loan.

These conditions can vary from program to program and business to business. Most, conditions are negotiable but can include conditions such as:

  • No repayment for a period of 5 years on the loan
  • No interest for the 1st 12 months
  • Only repay once you start profiting

These are a few of the terms that may be possible. Additional terms and conditions may be set and negotiated.

A conditional loan is favorable as it helps you keep more money in your pocket when you needed them most, especially during the initial startup phase.

Guaranteed government loans

No, it does not mean that the government guarantees you money. And no, not everybody can get a guaranteed government loan.

Guaranteed government loans simply mean that the government will be the co-signer on your loan.

Why does that matter?

If things don’t go as planned for you, with a traditional loan you are on the hook for 100% of the funds borrowed. This means any money that you borrowed no matter if your business is successful or not, you have to pay back.

With the government-guaranteed loan,  any money that is borrowed, the government is the cosigner. This means they are on the hook for part of the money.

You, you’re a small business and the government program agency, share the risk.

In some cases, the government can be on the hook for as much as 85% of the government loan.

This keeps some of the risks for you down.

These are the top government loans to consider when borrowing from the Ontario government or the federal government of Canada.

If your small business needs the initial capital to get started, a government loan may be your best option.

To see all government loans, and other types of government funding, try using the funding database and see all available options. The Ontario Startup experts are there to help support you, and guide you through the funding search step-by-step.

Ontario Small Business Funding
Funding

Ontario government funding for small businesses

by Tyler Bailey
24 February 2022

If you’re planning on starting a small business in Ontario, you are in luck.

The Ontario government provides government funding for small businesses across the province.

These funds considered government-provided are available and are there to help you start up, expand, and to grow your business while boosting the Ontario economy.

The goal of the government funding provided by the provincial-level government and the federal-level government is to create a stronger economy while boosting entrepreneurship and creating jobs.

In other words, you get the government money, use it for your business, succeed and hire staff, and then pay taxes.

It is a circle that keeps the Ontario government working to support all entrepreneurs.

Types of Ontario government funding for small businesses

The Ontario government provides funding to small business owners across the province in various forms of funding.

The most common include government grants, government loans, tax breaks and credits, and other contributions.

While there are other types of government funding available these are the most common and the most approved options for small businesses.

Ontario government funding

A government grant, for example,  is considered one of the best types of government funding that you’re a small business can get.

The different funding programs all have their own benefits to a small business owner.

In most cases, a government grant is free money. Money that you don’t have to repay back after you’ve received it and you can use it towards your various start-up costs and expenses.

A government Grant is also one of the most competitive types of programs to get into.

On the other hand, you have government loans which also vary but are far better than any bank loan.

These government loans can often come with no interest, low interest or have terms that are negotiable.

As a small business starting up obtaining a government loan from the government can help secure your business.

Certain government loans are also guaranteed loans. This means that the government of Ontario acts like a cosigner for your business.

If things were to go south, the government-guaranteed loan can have your back by paying as much as 85% of it for you.

Lastly the tax breaks in the credits.

These are excellent programs, despite often not being considered so due to the fact that you need to spend the money before you apply for a tax credit, but technically they are grants as well.

Tax breaks or tax credits, just like the ones when you do your taxes, can be applied to at the end of the year and you may be refunded an amount to cover certain expenses you had.

Applying for government funding in Ontario can ensure your success. If you need guidance and assistance on finding the most available government funding options consider using the funding database Provided by Ontario Startups.

Who is eligible for government funding in Ontario

All Ontario residents as long as they are starting a business or are looking to expand their business may be eligible to apply to government funding.

Certain factors may cause an issue, so speaking with the business expert or a funding expert and Ontario Startups we’ll ensure that you’re on the right track.

The certain expenses that you may be eligible to have covered by the various government funding programs in Ontario include the below:

  • The initial start up costs
  •  Your marketing budget
  •  Your stuff wages
  •  Training costs
  •  Your inventory and supplies
  •  Your equipment costs
  •  Certain renovation expenses
  •  And much more

If you are unsure which expenses the Ontario government options can fund , contact an Ontario Startups expert. They are there to assist you and to help you find available government funding programs in Ontario.

What is needed to qualify for a government funding program in Ontario

The requirements of applying to government funding in Ontario depend on the program.

Each government funding program in Ontario has its own criteria that you must follow in order to qualify.

Some of the most common criteria include having a strong business plan, being in the right province or location, having a business in the right industry, providing a detailed breakdown of exactly what you need funding for.

By following these few criteria’s you will be setting yourself apart from the rest and will remain on par with what is expected for most government funding agencies.

How much can you get in government funding in Ontario

As a small business starting up in Ontario the costs that you need to have covered will vary. Depending on how you break down your expenses based on what you need funding for you may be eligible for certain amounts from a number of programs.

Some business owners ask for a few $1,000, while others ask for a few $100,000. So, it all depends on the type of business, financials and funding requirements.

The Ontario Government has a number of great programs to help small business owners is succeeding. Take advantage of what is available and work with the funding expert to maximize your potential and to achieve success with your Ontario small business.

https://www.ontariostartups.org/purchase/
Funding

But I Only Want A Government Grant

by Tyler Bailey
21 February 2022

As a small business getting started it’s tough. Money is needed to cover the various start-up expenses you may have.

A government grant can help a lot.

Generally speaking, government grants in the form of free money will ensure that you can start your business, fund the various costs you have, and succeed without the worry of having to pay that money back.

In other words, congratulations you won the lottery.

Unfortunately, this is now how it all works.

Government grants exist, however they’re handed out to those individuals and business owners who need them the most. It’s not to say that you don’t need it but specific businesses requiring the funding for specific needs are more likely to obtain a non repayable government grant.

So as much as you need just a government grant and no other type of funding, it doesn’t mean that this is what you will be eligible for.

There are a number of factors to consider when asking for a government grant.

These factors include the pop 5 such as

  •  The location of your business
  •  The specific industry your business is in
  •  The funding requirements that you have
  •  Your business plan
  •  Time of the year and deadlines

The above factors play a role in determining your eligibility for a Government Grant. Additional factors may be considered as well as each government funding program has it’s own criteria as well.

A government grant, being considered as a non repayable form of funding, it is always the top pick for most businesses. It’s money you don’t have to pay back.

However, the government agencies to provide the funding think of it a bit differently.

The agencies that provide the government grants focus on specific needs.

Usually, a government grant will be provided to those who help the business achieve success through a method of ensuring a wider benefit within the community.

Things like hiring employees, providing training, going green, and similar will more benefit from a government grant than those whose focus is to purchase equipment, pay for marketing, or spend the money on supplies and inventory.

Remember that the key focus of any government grant agency it’s not to just hand out the money, but to meet the own objectives that they want to accomplish with the money they have set in place.

These objectives must be met. So, when you are applying for funding, you should always ensure that you match the criteria, otherwise, don’t apply.

Depending on your specific funding needs, it might be a good idea to break down the amount of funding that you need into the specific requirements. Doing this will help determine if you’re eligible for a government grant only or multiple types of programs including those of government loans, tax breaks or tax credits.

Speaking with an Ontario Startups expert will also help you determine what you’re more likely to obtain in the form of funding from the various levels of government.

Is there a way that you can only obtain a grant for your business?

Many business owners only apply for a government grant.

Some are successful, some are not. The success of your applications depends on many factors.

If you are only in the market for a grant, a regular search to access all available funding is often recommended. As funding programs change regularly, keeping a lookout for the top grant programs as they come out is always key.

While it is recommended to apply to multiple sources and maximize your potential, you know your business best and you know exactly what you need money for. Focus on that which requires the most.

Keep in mind however that you are most likely to obtain funding for your business when your funding needs are broken down properly and when you consider all types of funding programs and you utilize the funds only for the requirements that you have in mind within the first year of business.

If you need guidance or wish to access all available funding options for your specific business the Ontario Startups funding database has all of the government grants and other forms of funding options listed.

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