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What are the most common government loans that businesses in Ontario receive?

by admin
7 August 2023

Starting a business in Ontario, Canada is an exciting endeavor, but it often requires financial support to turn your dream into reality. Thankfully, the government of Ontario offers a range of loans specifically designed to help entrepreneurs get their businesses off the ground. In this article, we will explore the most common government loans available to companies in Ontario and provide valuable insights into each of them.

Take the first step towards success with our Small Business Startup Platform. Collaborate with our team of experts, utilize our powerful Business Plan Builder tool, and gain access to our Funding Database to secure government funding for your Ontario-based business.

Small Business Loans

– The Ontario Small Business Assistance Program offers loans to support the growth and development of small businesses in the province.

– These loans are available to businesses with fewer than 100 employees and can be used for various purposes, including purchasing equipment, inventory, and expanding operations.

– The loans typically range from $5,000 to $500,000, with interest rates and repayment terms varying based on the business’s specific needs.

Export Market Access Loan

– Ontario businesses looking to expand their customer base internationally can benefit from the Export Market Access loan.

– This loan assists businesses in covering eligible costs for export market development activities, such as trade shows, marketing initiatives, and export training.

– The loan can provide funding of up to 50% of the eligible costs, with a maximum loan amount of $50,000.

– It helps businesses increase their competitiveness in global markets and supports their efforts to explore new trade opportunities.

Eastern Ontario Development Fund

– The Eastern Ontario Development Fund supports businesses in the eastern region of the province by providing financial assistance for their growth and innovation initiatives.

– Eligible businesses can receive grants or loans to support projects related to job creation, regional economic development, and commercialization of innovative products/services.

– The funding ranges from a minimum of $150,000 up to $5 million, depending on the scale and impact of the project.

Northern Ontario Heritage Fund

– The Northern Ontario Heritage Fund is specifically designed to support economic development, business growth, and job creation in the northern part of the province.

– This fund grants and loans to businesses and organizations to promote competitiveness and innovation.

– Funding is available for various purposes, including infrastructure development, research and development, and business expansion.

– The amount of funding varies depending on the specific project and its potential impact on the region.

Canada Small Business Financing Program

– The Canada Small Business Financing Program (CSBFP) is a federal initiative that assists small businesses in obtaining loans to finance the purchase of equipment and other eligible assets.

– Administered through financial institutions in collaboration with the government of Canada, this program helps businesses access affordable financing, even if they have limited collateral or operating history.

– The maximum loan amount under the CSBFP is $1 million, and the funds can be used to purchase or improve assets, such as buildings, equipment, and leasehold improvements.

Agricultural Funding Programs

– For entrepreneurs in the agriculture sector, Ontario offers specialized funding programs to support farm businesses and promote agricultural innovation.

– Programs like the Canadian Agricultural Partnership provide grants, loans, and other financial incentives for projects related to farm productivity improvement, technological advancements, and market development.

– These funding programs aim to enhance the competitiveness of Ontario’s agriculture industry while fostering sustainable practices and supporting rural communities.

As an entrepreneur in Ontario, understanding the various government loans available to businesses is crucial to accessing the financial support you need. Whether you are a small business owner, an exporter, or operating in a specific region or industry, there are tailored loan programs to help you achieve your goals. By taking advantage of these government loans, you can propel your business toward success and contribute to the economic growth of Ontario.

10 ways to qualify for Ontario small business funding
Funding

10 ways to qualify for Ontario small business funding

by Tyler Bailey
9 September 2022

Small businesses are the backbone of the Ontario economy, and qualifying for government funding can give them the boost they need to get started or expand. Here are 10 ways to qualify for Ontario small business funding.

1. Get a business license or permit: You need to have a business license or permit to operate in the province of Ontario. Check with your local city or town hall to see what’s required.

2. Meet health and safety requirements: Your business must meet all provincial health and safety standards. Visit the Ministry of Labour website for more information.

3. Be a Canadian citizen or permanent resident: You must be a Canadian citizen or permanent resident to qualify for most government funding programs.

4. Have a valid Social Insurance Number (SIN): You need a SIN to apply for any government funding program.

5. Register your business: You must register your business with the Ontario Government before you can apply for any funding. You can do this online or in person at a ServiceOntario centre.

6. Have a business plan: Most government funding programs require you to have a business plan. This document will outline your business goals, strategies and financial projections.

Tools such as the Business Plan Builder can be of real help when creating a professional business plan that funding agencies across Ontario and Canada want to see.

7. Be in good standing with the government: Your business must be in good standing with all levels of government to qualify for funding. This includes having no outstanding taxes or debts owed to any level of government.

8. Meet sector-specific requirements: Some funding programs are specific to certain sectors, such as agriculture or tech. Make sure you meet any sector-specific requirements before applying.

9. Have a minimum level of activity: Most government funding programs require you to have a minimum level of activity, such as sales or employees. This helps ensure that the funding is going to businesses that are actively growing and creating jobs.

10. Meet any other eligibility requirements: Each government funding program has its own unique eligibility requirements. Make sure you understand all the requirements before applying.

Applying for government funding can be a complex process, but it’s worth it if you’re able to get the funding your business needs. Follow these steps and you’ll be on your way to qualifying for Ontario small business funding.

There are hundreds of available government grants, government loans and tax breaks in Ontario and across Canada that your small business may be eligible for. Be sure to review the Funding Database to access all available Ontario funding options.

Government funding is a valuable resource for small businesses in Ontario. In order to qualify, you must meet certain eligibility requirements, which can be daunting. However, by following the tips we’ve provided, you’ll increase your chances of securing the government funding your business needs.

Government Grants for a Small Business in Ontario
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.

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