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.