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.