When it comes to starting a small business in Ontario the government has a lot of support provided towards small business owners startups and entrepreneurs

This support often comes from 3 levels in the government including the law including the local government, the Ontario provincial government, and the federal government of Canada.

The money that is available comes in a number of forms including funding from government grants, government loans, tax breaks, tax credits, and other funding options.

With such a variety of funding options available, small business owners don’t have to rely on personal funding and are not forced to utilize banks or 3rd party investors.

Accessing these government funds is one of the key challenges that most entrepreneurs in Ontario face.

Not because the funds are not available but they’re extremely difficult to access or find.

Why, you ask?

Since the funding comes from multiple levels of the government they are scattered across hundreds of websites from the various government funding agencies.

Most of these funding agencies don’t promote their funding programs. Instead, they rather use that promotional money to fund business owners.

To no fault of their own, their marketing just isn’t there.

So how does a small business in Ontario get funding?

Well, there are a few options.

1st you can start by accessing the government site. While there are dozens of government sites per city or per province, the federal government website can be of a lot of help If you know what you’re looking for.

2nd there are a lot of 3rd party options such as the Ontario Startups Funding Database that helps with finding and accessing all of the available government funding programs in Ontario and across Canada.

3rd, you can take some time on your own and Google the information. As most of this government funding info is public information as long as you have the time and patience you were able to Google and find most of the options on your own.

What type of funding programs are best to consider in Ontario?

There are many different options in Ontario to fund your small business. As mentioned, some of these come from forms of government grants or government loans. What you want to obtain entirely depends on you.

Government grants are some of the best options.

These options provide you money for your business for the various costs that your business may have. Most of the time the government grants are considered non-repayable. This means you take the money from the government, use the funds for your own purpose that you initially applied with and you don’t have to pay it back.

Government loans on the other hand are funds that you do have to pay back. However, these government loan programs are much better than any bank loans.

The interest rates are a lot better, the repayment terms are a lot better and the conditions of the loan, much better in most cases.

These government loans are easily attainable and more available in comparison to government grants.

Tax breaks and tax credits are also available.

They’re not as fun simply because you first have to spend the money in order to take advantage. In most cases, money that you don’t have, in order to qualify for a tax credit or for a tax break.

The tax breaks or credits are often obtained at the end of the year during tax filing season. In order to be qualified for most of these, you have to keep receipts of your purchases and they have to qualify for the various criteria that these tax programs offer.

If you had a choice to pick whether to go with the grant a loan or a tax program, grand options are the best. However, loans are the easiest to obtain.

What do I need to qualify small business funding in Ontario?

If you’d like to qualify for a small business funding program in Ontario made available by the local provincial or federal government, you have to have a few things.

You need to have a business registered. A business however does not have to be active or make revenue just yet.

You have to have a formal business plan. One that explains your business model, your funding requirements, shows a little bit of your financials, and gives an idea of what you do to the funding agency.

You have to find the right program. Programs that cover the specific needs you have, but also programs that you can meet the criteria for as well.

Lastly, you have to apply on time. If you miss the deadline, or the program option is no longer available and you will be denied.

Is there a funding program for my business?

Currently, in Ontario there are approximately 500 different funding programs. As mentioned these programs come from the local, Ontario provincial, and the federal government.

To determine if you’re eligible for a funding program you first have to have a completed business plan that breaks down your funding needs. This information will be used to help determine which program options you may qualify for.

As most funding agencies have certain factors that they consider they will be looking at your location, the industry that you’re in as well as how you intend on using the funds.

Accessing the Ontario Startups Small Business Funding Database, you will have access to all of the funding programs available. With a simple search or guidance from an expert, you will be able to locate the right options that are available for your small business in Ontario.

What if I apply and am denied?

If you apply to a funding program in Ontario for your small business and you’re denied funding, it’s not the end of the world.

Getting denied funding is a common issue. An issue that you have to learn from adjusting and simply re-do.

The most common denial reasons from a government funding agency across Ontario will be the lack of information in your business plan, applying at the wrong time, past the deadline, or not having the application properly completed.

This is something that your Ontario Startups experts will assist you with to ensure that the common mistakes are avoided. Whatever the reason is for your denial of government funding you would be notified by the various agencies as to the reason why. This reason why is crucial to improve your business plan, fix your applications and update your criteria for the next time you apply.

Government Grants vs Government Loans in Ontario

Funding

The difference between government grants and government loans

by Tyler Bailey

12 February 2022

As you start a small business in Ontario, government funding options may be considered to help you get the capital required to start up.

The Ontario government has a number of different funding programs to help with this.

Knowing which programs are best suited for your type of business and the various funding areas funding needs can help you succeed

So what are the various government funding program types?

The most common include government grants, government loans, and tax breaks or also refer to as tax credits.

In this article, we’re going to be looking at the difference between government grants and government loans.

Government Grants versus Government Loans

Both government grants and government loans are provided by the various levels of the Canadian government. The funds can come from your local government, the provincial Ontario government, and via the federal government of Canada.

Wherever the money comes from, funds can be used to help your small business advance and pay for the various expenses you may have.

Government Grants

There are multiple types of government grants.

Not all government grants are made equal. But all government grants are non repayable.

There are a few different types of government grants including those of:

Non repayable government grants
One time and Renewable Grant
Partial contributions

While other government grants exist, these are the top grant types.

Non repayable government grants

Just as they are called these types of government programs are non repayable. This means that the money that you are provided with to fund whatever requirement you have for your small business, the money does not need to go back.

The money is yours to do with what you wish as long as it covers the initial application requirements you applied for.

Failing to apply the funds towards a requirement that you initially stated could however result in a penalty and require you to pay the money back.

One time and renewable grants

The one time grants are usually funding programs that are created to fund at 1-time purchase or payment. These programs aren’t placed to get you a kick start with your business.

Generally, the one-time grant payments are made to help you hire staff, provide training, go green, and so on.

The renewable aspect comes in if you’re a larger company and you need to have these types of expenses ongoing, and require support.

Partial contributions

Another form of government grant that requires no repayment, however, most business owners try to shy away from this type of funding.

The partial contribution part requires that you as the business owner put in a portion of the funding towards your own business as well.

This way both you and the government agency providing you the funds share the same risk.

The percentage of the partial contribution may vary from program to program, business to business to business, and may have additional terms to meet in order to be eligible.

A government grant is always preferred. It is free money that you can use the start and boost your small business in Ontario. While not everybody can qualify for a government grant if you do, you are in luck.

Access the Ontario small business start-up platform and the funding database to see all available government grants as of today.

Government loans

If by chance you’re not eligible for any government grants, government loans aren’t just as good if you need the funding.

The majority of government loans are far better than any private or bank loans. A government loan means money in your pocket to cover the needed expenses of your small business.

There are different types of government loans to consider, And these include:

Low interest loans
No interest loans
Conditionally repayable loans
Government guaranteed loans

In a comparison of government grants and government loans, the loans are often much easier to obtain.

They have more options for you to consider and often have less strict requirements. Government loans can also be used for more types of expenses.

Low interest and no interest loans

These types of loans are provided by the government and also come from various levels of the government, including the local, provincial and federal governments of Canada.

While these are funds you have to pay back because they are still considered a loan, there are options that have very low-interest rates that make it easy to borrow. There are also programs that have no interest tied to the amount at all.

Conditionally repayable loans

Some of the best types of government loans are conditionally repayable loans.

While it is money that you have to pay back, terms are often negotiated, and conditions are placed to help you as a small business borrow smart.

Some of the conditions may vary however, conditions such as not having to repay any amount of funding until you are successful and making money, is potential. Other conditions may be, only having to repay after a certain time such as 5 years later.

Conditional loans are very much recommended and comparison to any other types of loans available.

Government guaranteed loans

Often government-guaranteed loans are confused with guaranteed loans. What that means is that most people will consider that they are instantly approved and guaranteed the funding no matter what – however, that is not the case.

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

So if things go south with the business you are on the hook for a percentage, while the government covers the rest.

In certain cases, the government can cover as much as 85% of the loan.

These types of loans are preferred as it gives you a protection layer and can ensure that if things go bad you have some security.

To see all available government loans for your Ontario small business, Try using the funding database provided by Ontario Startups.

As you can see there are different types of government grants and different types of government loans. Each program branches out into more, and the likeliness of funding depends on many factors but now you are better educated on the different types of government loans and the different types of government grants.

If you need guidance and assistance in determining what grandson loans are available for your business, But what you should consider 1st, speak to one Ontario Startups expert today.

Funding

Your government funding questions answered

by Tyler Bailey

4 February 2022

The Ontario government provides funding to small business owners and entrepreneurs across the province. In addition to that, The Canadian federal government and the various local governments provide funding as well.

As a small business owner trying to find these funds, it might get a bit confusing or time-consuming.

The funding available is scattered across over 1,500 different programs. These programs come from the various levels of the government, each with its own website, requirements, and a unique process to apply.

Getting expert help to find the available government-finding programs is definitely recommended.

Using tools such as the Funding Database provided by Ontario Startups will ensure that you have all of the options in one place. Saving you time, And a lot of frustration.

With all of the confusion around government funding programs in Ontario, below is a list of questions that commonly come in, so we thought we’d share.

Does government funding really exist in Ontario?

Government funding is real.

Each province has its own funding program. These programs are set in place to help boost the economy.

The government hands out the money in order to help you succeed with your business and then in return, they expect you to hire staff and to pay tax.

This creates a cycle. A cycle that is ongoing and helps support entrepreneurship across the province each year.

Funding comes in various forms including government, government loans, and tax breaks.

How much funding can my small business in Ontario get?

As a small business in Ontario applying to any government funding program you should go in with a few prerequisites. The most important one is to know how much funding you actually need.

While there is no maximum or minimum that a funding agency can provide you unless they specify, your funding needs should be based on your business plan and on how much you need to succeed.

While applying for a million dollars would be ideal, it does not mean that this is what you actually need within the 1st year of your business. Consider your start-up cost and evaluate what you need money for urgently. This is what you apply for first.

Funding agencies often have limits that generally sit around $25,0000. However, if asking for funding, it’s a good idea to break down your funding requirements into smaller amounts that are specific, so that way you can apply to multiple funding programs covering a larger range if needed.

How do I know if I will be eligible for any government funding in Ontario?

To find out if your small business in Ontario is eligible for any funding, you have to access the government funding program requirement.

Unless you know which program to apply to, working with an expert will help determine this. Each government funding program has its own requirements that have to be met in order for you to be eligible.

Certain factors such as your location, your industry, and the specific funding needs that you have will be the ones determining your likeliness to apply successfully.

Why would the government give my business money?

The government supports entrepreneurship. With that in mind, the government gives funding to small business owners that are looking to succeed. In return, you spend the money locally, you hire local staff, you pay your taxes, and this cycle helps boost the economy, and ultimately creates a new round of funding for another business to obtain.

What if there is no program available for my business?

If you are looking for government funding in Ontario and you have no success finding any applicable programs, it doesn’t mean that they’re not there.

The government agencies often don’t promote their funding programs, and this means that they are extremely difficult to find.

But in the case that you are not eligible for any of the options, the good news is that the funding programs constantly change. So if you don’t qualify, tomorrow is another day.

Working with the expert will ensure that you stay on top of the funding search and then you are matched to programs that may help with your funding needs.

What is the maximum that I can get from the Ontario government?

There is no maximum amount that you can get in government funding. At least this is not very clear as each funding agency has its own maximum figures.

To ensure optimal success and then you get as much as you need, break down your funding needs and apply to multiple funding programs that cover each of those needs individually.

After I apply for funding how soon can I get the funds?

Once you have successfully completed a government funding application, and you have submitted it, it can take anywhere from 2 to 6 weeks on average to hear back.

The speed depends on a number of factors including the time of the year, program deadlines, number of applicants, and more. All of these factors can impact the speed of your applications and fund approval.

Do I have to pay back the government money?

Depending on the type of government funding you are applying to, it may require repayment.

The money that has to be repaid will come in the form of a government loan or similar.

Tax breaks, credits, and government grants are often the non-repayable funds.

Keep in mind however that if you use the government funding incorrectly, try to fool the system, you may be asked to pay all of the funds back with a penalty.

What do I need to have in order to apply to a government funding program?

In order to apply for government funding successfully, you have to complete the funding application provided by the agency. As each agency has its own criteria, these are the items your small business must meet in order to qualify.

Remember the key to a successful application starts with a completed business plan.

These are just a few of the questions that are our members have in regards the government funding for small businesses in Ontario.

If you have any questions of your own, be sure to ask.

Funding

Government Grants for a Small Business in Ontario

by Tyler Bailey

31 January 2022

When deciding to start a small business in Ontario one of the lacking components of most business owners is the limited amount of funding or capital that they have available.

Funding can often be the reason why a business is successful, or why a business fails.

During the initial months of starting a small business as a business owner, you will have numerous expenses to cover.

These expenses include your regular startup costs, such as; purchasing the needed tools, the equipment, paying staff wages, covering your marketing expenses, purchasing inventory and supplies, your rent, and much more.

Unless you are using your personal funds, or savings for this, in most cases you will have to borrow.

Borrowing money is no easy task.

Sure you can borrow from your family and friends but to get some real money going you’re looking at bank loans, lines of credit, utilizing your credit cards, working with a business partner, using an investor, or accessing government funding options.

Government funding options are some of the best forms of funding that you can obtain.

While they may not be the easiest options to find, once you do, the chances that you’re able to fund each of your expenses are far greater than those of other options.

The various government funding options available include government grants, government loans, tax breaks, or credits.

The best type of program available would be a government grant. Government grants are considered non-repayable which means you can use the funds as you wish for the various needs that you initially applied for and these funds don’t have to pay back.

This way, your business has a chance of succeeding, and the government benefits as well.

Small business government grants are available in Ontario, you just have to find them.

Finding the available small business government grants is a challenge.

As the various government grants come from a number of agencies including local agencies, provincial agencies as well as federal government agencies, they can be difficult to locate.

With access to a platform such as the Funding Database here at Ontario Startups you would have access to all available government grant options as well as other forms of funding.

This will definitely help with the search process, to save you some time, frustration, and obviously allow you a focus on your business.

Government grants are considered the best funding options to apply for.

While government grants don’t always cover all aspects of your expenses, they can be used for the most beneficial ones. This is something you have to determine.

The various government agencies will fund small business owners looking to hire staff, provide training, improve their manufacturing, to go green, and much more.

How does the government make money on government grants

The government provides government grants as a way to boost the economy, create jobs and allow small businesses to succeed.

The government makes money on taxes.

The more success that you see, the more likely the government is to collect more taxes.

A win-win situation for both parties.

What small business grants are available in Ontario?

Government grant programs along with other forms of funding constantly change. Sometimes by the day.

Accessing the Funding Database here at Ontario Startups will allow you access to all options that are available. This way you can access all grants, all loans, and all tax programs with the click of a button.

The government grant programs that are easiest to access are the ones related to hiring, training, going green, and things that benefit more than just your business but the economy or the community as a whole.

What do I need to apply for a Government Grant?

To apply for a government grant in Ontario your small business will need to be registered. You will be required to have a formal business plan and 3 year financial projections. This is all that Ontario Startups can help you with and guide you step-by-step as you work with an expert.

What are the types of government grants?

The term government grants often simply means, free money.

While it is free money, there is a number of different types of government grants as well.

These different types of government grants include:

Non repayable government grants
Partial contributions
One time and renewable

As a small business, when applying for a government grant in Ontario, your goal should be to obtain one of the non repayable government grants.

However in most cases, you don’t really have a choice but you have to rely on what is available at the time of your search, your application, your industry, and your business location.

This may mean that you have to pick and go with what is available rather than what’s best for you.

A non repayable government grant is the best option, however not the only option to consider.

The non repayable government grants are exactly what they’re called, non repayable.

This means that once you apply for a non repayable government grant to cover a specific funding requirement and you are approved, the money that you are provided with does not have to be paid back.

On the other hand, you have partial contribution government grants. Another very common government grant program type.

While this is still money that you don’t have to pay back, in order to get the program or get approved, you have to have money of your own to invest.

An example of how the program works:

If you are looking for a grant of $50000, the partial contribution can approve a certain amount, as long as you have the other amount to put in yourself. As an example, the government can give you $35,000 dollars as long as you can put in the other $15, 000. Now the risk is shared.

The 3rd type of government grant is the one time or also call the renewable grant. This is a very specific program type that allows you to get funded once and keep going back for more if needed.

This type of government funding program is often used for hiring, training, renovations, and other activities that happen more than once in the lifespan of a business.

The money you take on is also considered non repayable in most cases.

If possible and if you qualify to take on a government grant, no matter the type will always be beneficial to your business. It is money that you don’t have to pay back and money that you can use to build your business up.

If you are not eligible for any government grant programs in Ontario for whatever reason, don’t give up.

Government grants are constantly announced, The programs are regularly changing and in order for you to not miss any options, it’s a good idea the keep regular searches going.

The OntarioStartups Funding Database can assist with this and keep you on track with all available government finding options including those government grants.

Funding

5 tips for starting a small business in Ontario

by Tyler Bailey

26 January 2022

Starting your own small business in Ontario is no easy task. But it is very doable and can be very rewarding if done right.

When starting your small business you probably will do quite a bit of research. There’s a lot of information on the web to guide you in the right direction of starting your own business.

Some things that you read might be helpful, some might be confusing, and some might be useless.

But what advice and what guidance do you follow.

As Ontario is one of the most popular provinces in Canada, it does give small business owners lots of potentials to succeed. It is a rich province both financially speaking and in resources. The main resource is its population. So knowing how to take advantage is the key to your success.

Here are the 5 tips for starting your own small business in Ontario.

Tip #1 Pre plan your business.

If you already decided that you wanna start a business, your first step should be to pre-plan your small.

Make sure you actually do this and start by creating a business plan.

The best advice anybody can give you when starting your own small business is to first start with the proper business plan.

Your business plan, if done right will outline your business model and explain how the business will operate before you even get a chance to launch.

A business plan is actually a blueprint to your success. Once your plan is completed correctly it will outline all the necessary details that you will need to grow and to succeed. It will be a road map to follow each step on the way.

While business plans can be quite expensive to get professionally completed, you have a number of ways around it.

You can create your own business plan from scratch, or use tools and templates that are available to get this done.

You can also use the business plan builder tool available through Ontario Startups as part of our platform which will also allow you to get your business plan completed and reviewed by a professional expert to ensure that your plan is up to par with what is expected.

Tip #2 Figure out how much you have to start with

Starting a business with no money is never a good idea. While it can be done it does make your start a process a lot more difficult.

Think about it, everything costs money.

Your website, Your business cards, Is your inventory, supplies, marketing…. Everything comes with a cost

So, while you can go through the business with spending very minimal amounts of money, Everything that you don’t spend money on that would be required, will delay the process.

Figuring out how much you have available will help you achieve your success a lot faster.

The amount of capital that you’re starting with will determine what you can and can’t spend on, what tools and resources you might be able to use to speed up the process, and how far you can go with your own expenses.

If you don’t have any funds of your own, borrowing from family, friends, business partners, or even using your credit cards or personal loans can sometimes help kickstart the business.

If you borrow money, be sure to borrow smart.

Tip #3 Determine your start up costs

If you have completed your business plan from step one, the startup cost process will be easy to determine.

Your startup costs determine the outcome of your business initially.

Do you have the capital that you need to successfully lunch, or do you need to cut back?

Remember that you have 2 types of expenses. The expenses that “would be nice to have” and the ones that you consider as “must-haves”.

Your top priority will be the crucial expenses that you can’t move forward without.

These expenses are initially your startup costs. It is often the one-time costs to help you set up, purchase the needed tools and equipment, get your website created, invest in the initial inventory if needed, cover your initial rent, and so on.

From there you have your ongoing expenses. The expenses may be monthly or at the very least annually covered, which are a must in order to operate successfully.

Things like paying your rent, your phone bill, internet, utilities, your wages, staffs wages, and so on.

Determining your startup costs and operating expenses will help you in the long run.

Tip #4 Find government funding

If you have taken some time to determine your startup costs and have completed this step, tip #4 will be the next step in the process.

The Ontario government along with various local governments and the federal government have numerous government funding programs to help small business owners across Ontario.

What this means for you is that you might be eligible for funding to cover some of your small business expenses.

The funding comes in the form of government grants, government loans, tax breaks, and credits. They are all ultimately created to help you succeed.

To find available government funding programs for your Ontario small business consider working with an expert at Ontario Startups, and utilizing the funding database which currently contains over 1500 different government funding programs.

Tip #5 working with an expert

While not everybody can afford to work with a business expert or mentor, if you can manage it, it’s very much recommended.

Experts and mentors who have gone through the startup process in Ontario are much more likely to have the needed guidance is supported to provide you so you can succeed with avoiding the common pitfalls.

As the web is full of guidance and support, knowing what to listen to and what guidance to follow is a bit tricky. So following a local expert or somebody who understands business in Ontario and across Canada. This will be your best bet for success.

Experts at Ontario Startups have years of experience, in starting, funding, and launching small businesses across Ontario.

As part of the small business start up platform that Ontario Startups provides its members, expert guidance, and the step-by-step handholding is provided to all members.

Registered today to benefit from the step-by-step guidance.

The above are the 5 tips that help you start your small business and Ontario. Remember that your business plan is the key. Once you have your business plan, it will determine your costs, will help you find 3rd party funding such as that from the government of Ontario, and will help you get on track with a successful launch of your business.