Government grants and loans may also create additional cashflows and support for important initiatives, which lead to expanded projects being completed faster and more efficiently. Additionally, government funding support strengthens Canadian competitiveness and helps businesses become leaders on the global stage.
That’s why SMEs and entrepreneurs need to learn how to optimize their funding applications and integrate government funding into their strategic business plans. By doing so, they not only give their business extra support but allow the larger Canadian business ecosystem to thrive on an international scale. To help you better understand the benefits of government funding and proper application techniques, read our tips below:
Annually, businesses from every industry are awarded Canadian government funding to finish projects and improve them. Funding success stories demonstrate how other businesses may benefit from funding support from the government.
How to apply:
Accessing government grants and loans can be exciting and rewarding for small and medium-sized enterprises (SMEs) to undertake if they use the right resources and strategies.
“The application process is not easy, but it can be simplified by planning ahead and linking strategic goals to the right small business grants and loans programs offered through provincial and federal governments.”—Bernadeen McLeod, President of Mentor Works
To be successful, your business must understand the Canadian government funding landscape and be proactive in establishing a strategy for strategic projects and accompanying budgets. Here are four critical stages to starting:
Since government grant and loan programs are project-specific, it’s important to start by implementing both critical and nice-to-have projects that will directly support your company’s growth, as well as improve your competitive advantage.
Suggestion: Brainstorm with your team what may be improved. Consider these questions to start:
Choosing suitable government grant and loan programs is difficult for two main reasons:
However, consulting firms such as Mentor Works offer an online database to Canadian government funding programs to assist with the dissemination of the variety of funding options.
After outlining funding programs that match your needs, you may choose one of the following options:
Unfortunately, businesses that attempt funding applications on in-house often miss deadlines as they often underestimate the time it takes to create a compelling narrative for an application that speaks to both a program’s goals and the organizations’ vision and objectives.
Aside from the excitement of achieving an application win, the application process requires being proactive and diligent. So, when a company receives between 15 to 75% of project expenses from government sources, there is more accountability for completing the project.
For most government programs, businesses should be incorporated for a minimum of three years and have at least 15 people on payroll, while keeping a positive net income. However, there are exceptions, such as COVID-19 relief and recovery funding programs, and more.
Please consult the Mentor Works Canadian Business Funding Guide for information regarding application criteria.
The first stage of Canadian government funding, as mentioned earlier, is to determine your goals. After this, external support services, like Mentor Works’s turnkey funding guidance, help this process with a customized list of programs that offer unique funding for specific projects. Browse our Government Funding Directory to find opportunities for your industry.
Approval success rates depend on each specific program and whether you’re able to fit the program design, such as eligible projects and expenses.
Even if your application covers all program criteria, there is never a guarantee that your application will be successful. However, the four aforementioned stages can help your business maximize success rates.
Access this full list of Canadian Government Funding FAQs to answer outstanding questions you may have, and always remember that there are many options for business funding support in Canada.
The Jobs and Growth Fund (JGF) is a new $700-million federal government funding program that aims to support Canadian economies with long-term growth and jobs creation following setbacks from the global COVID-19 pandemic. Also, JGF includes up to $70 million for small businesses established after January 2020.
“By investing in our job creators and the organizations that support them, the Jobs and Growth Fund will help to create quality jobs, pursue inclusive and clean growth opportunities, and empower businesses and communities from coast to coast to coast.”
– Mélanie Joly, Canada’s Minister of Economic Development and Official Languages.
These businesses must meet the program’s eligibility criteria. Highlighting this is crucial, as most grant and loan programs need businesses to be well established, meaning there is less funding for startups and entrepreneurs.
JGF financial support is being administered by Canada’s regional development agencies, including FedDev Ontario for Southern Ontario applicants and Western Economic Diversification Canada (WD) for applicants in Western Canada.
Applications are now being accepted on a continuous intake basis until March 31, 2024, or until funding is fully allocated. The Jobs and Growth Fund (JGF) supports projects that stimulate job creation and long-term growth for Canadian organizations through a diverse focus on rebuilding the Canadian economy following the trials and tribulations of the COVID-19 pandemic.
To be eligible for the Jobs and Growth Fund, projects must:
Strengthen the capacity in sectors critical to Canada’s recovery and growth:
Foster an inclusive recovery:
Preserve Canada’s competitiveness and future-proof SMEs through digital adoption:
Support the transition to a green economy:
If your Ontario or Western Canada organization wants government funding through the Jobs and Growth Fund (JGF), please reach out to the Mentor Works team to help streamline the application and grant writing process.
Although many Canadian provinces are no longer in strict COVID-19 lockdowns, and national vaccination rates are higher than any other country, many businesses across Canada are still feeling the negative impacts of the virus.
In addition to the new Jobs and Growth Fund (JGF), there are other government programs dedicated to providing COVID-19 relief and recovery funding. Stay posted on the Mentor Works COVID-19 Funding Programs Page for resources, news, programs, and COVID-19.
The new Canadian Federal Budget 2021 outlines plans for a total spend of $101.4 billion. With new pandemic business support options, including $17.6 billion towards cleantech innovation to combat climate change, it plans for a strong recovery and growth for all Canadian businesses.
SMEs and other businesses looking to understand how the budget can help their industry, business or other professional endeavors can check out the list of proposed initiatives below:
The budget proposes to provide continued business support during COVID-19 including:
The budget also proposes to provide cleantech innovation investments including:
There are also plans to provide a wealth of support to Canadian youth including:
To ensure that Canada prevails in the global fight against COVID-19, creates a stronger economy for all Canadians, and advances in cleantech innovation, the plan will invest:
To learn more about the overall breakdown of the Federal Budget 2021, including options for industry-specific support, regional support, municipal and non-profit support, and other additional support options for Canadian businesses, please read the detailed overview of the Federal Budget 2021.
“We are launching the Highly Affected Sectors Credit Availability Program to help those businesses hit hardest by the pandemic with low-interest, government-backed loans. By investing in Canada’s businesses, as well as workers and their families, we are investing in our shared recovery and a better future for all.”–The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade in a Canada.ca News Release, Jan 26, 2021
HASCAP government funding supports all businesses that have experienced a substantial decrease in revenues by at least 50% because of COVID-19.
Qualified small to medium-sized Canadian businesses can receive up to $25,000 to $1 million in HASCAP support loans, and larger organizations with multiple locations, such as restaurants or hotels, can receive up to $6.25 million in government funding.
Administered through the Business Development Bank of Canada (BDC), the Highly Affected Sectors Credit Availability Program (HASCAP) aims to offer financial assistance to Canadian businesses that have been hit hard by the impacts of the COVID-19 pandemic.
Based on the following eligibility criteria established by the Government of Canada, a primary financial institution will determine whether a business qualifies for HASCAP loans:
An eligible business can apply for a HASCAP loan for each legal entity they own, up to a maximum combined amount of $6.25 million (all legal entities combined).
HASCAP loans cannot be used to pay or refinance existing debts; the loan will be used exclusively to continue or resume operations by relief of payments relating to:
Thinking about taking your business online during COVID-19 closures? The FITTskills Online E-Commerce Workshop gives you the training you need to get more customers from around the world by offering your products online.
There have been dozens of government programs that have launched in support of the relief and recovery of Canadian businesses impacted by COVID-19 restrictions, lockdowns and overall pandemic fatigue.
To learn more about these government funding options offered to assist Canadian businesses during the COVID-19 pandemic, please visit the Mentor Works COVID-19 Funding Page.
Mentor Works is a business support organization specializing in Canadian government funding. The Ontario-based business has helped hundreds of businesses build and execute their funding strategy through a mix of federal and provincial government grants, loans, and tax credits. Mentor Works offers free online resources, funding webinars, and news via their website at www.mentorworks.ca.
Canadian employers, specifically, can receive up to 50-70% of an intern’s wage to a maximum $5k-$7k, or up to 50% of a recent graduate’s wage to a maximum $12k-$15k in hiring grants.
Spring and summer are the ideal times to use these incentives since there is a large youth talent pool during these times and funding programs are generally open to applications. Since many hiring grants operate on a first-come, first-served basis, interested employers should start the recruitment process as soon as possible.
While many Canadian businesses know that hiring grants and wage subsidies exist, few understand how they help, how they impact the recruitment process, or what they must do to access funding.
Most hiring grants and wage subsidies in Canada are directed at two types of hires:
Hiring incentives are provided to employers for a couple of reasons. For students and recent graduates, paid work experience provides relevant, meaningful job experience that leads to a greater understanding of their strengths and interests. For employers, internships and first career opportunities give their business access to a young, energetic audience that can grow within their company.
When hiring recent post-secondary graduates, employers can receive up to 50% of the hire’s wages to a maximum of $12,000 to $15,000.
When hiring co-op students, employers can receive up to 50% of the intern’s wages to a maximum of $5,000. This increases to 70%/$7,000 if the intern is part of an under-represented group, such as women in STEM or newcomers to Canada.
Now that you know the options available when it comes to hiring grants, it’s important to illustrate how they fit into optimizing the recruitment process. Following these steps can help simplify the application process and maintain your funding eligibility:
After funding is in place, you can formally provide an employment offer to the candidate.
Also, be aware that hiring a candidate and placing them on payroll prior to government funding approval can significantly complicate the process and often leads to applications being deemed ineligible.
With so many funding programs available, it’s often best to reach out to a specialist who can discuss your specific hiring needs and identify a program that works best for your company.
Contact Mentor Works to discuss your eligibility, identify the types of incentives providing support, and optimize the application process.
Mentor Works is a business support organization specializing in Canadian government funding. The Ontario-based business has helped hundreds of businesses build and execute their funding strategy through a mix of federal and provincial government grants, loans, and tax credits. Mentor Works offers free online resources, funding webinars, and news via their website at www.mentorworks.ca.
This news bodes well for those looking toward recovery in the new year, but the road ahead requires much patience, financial strategy, and government support too. For struggling businesses, especially SMEs, the Regional Relief and Recovery Fund is a viable option that can help them financially stay afloat until the economy is back in full swing.
On November 30, 2020, the Government of Canada released the 2020 Fall Economic Statement (FES) titled Supporting Canadians and Fighting COVID-19. Focusing primarily on the support from the Regional Relief and Recovery Fund (RRRF), the FES report highlights details about RRRF statistics, projections, and strategy plans as they relate to COVID-19 support for Canadian health, safety, business, and jobs.
Canada’s Fall Economic Statement (FES) highlights that, since its launch in May 2020, the Regional Relief and Recovery Fund (RRRF) has supported over 15,000 businesses in Canada, including more than 5,000 women-owned organizations and over 8,500 rural companies, saving around 100,000 jobs during the ongoing global COVID-19 pandemic.
The Regional Relief and Recovery Fund (RRRF) provides repayable interest-free loans that support the fixed operating costs of Canadian businesses that cannot meet the eligibility criteria to receive funding through other federal and provincial COVID-19 support programs.
The RRRF was recently extended and expanded in southern Ontario and businesses may now receive loans for retroactive costs from March 15, 2020 until March 31, 2021 for up to a maximum of $1 million, and select not-for-profit organizations are now eligible for funding.
“Our government will always be there to support Canadians to stabilize the economy and help businesses grow. We’re working with you to support good, local jobs and help Western Canada’s economy come back strong.”—Mélanie Joly, Minister of Economic Development and Official Languages
The expense deadline of March 31, 2021, for RRRF funding support is fast approaching, so those who are interested need to apply soon to receive interest-free loans to support their economic plans during the pandemic.
The Government of Canada’s 2020 FES highlights an ongoing action plan including proposed measures to continue protecting Canadians’ health, businesses, and jobs in order to maintain strong economic growth and stability. The full 2020 report can be accessed here.
A few of these major planning measures include:
The government is anticipating an additional investment of up to $500 million for RRRF funding to support Canadian businesses, bringing the total funding to over $2 billion. These changes have not yet been announced, but you can stay up to date on the RRRF or COVID-19 funding news and support through Mentor Works.
To get more expert advice on how to manage your business and taking next steps during COVID-19, read our blog COVID-19 effects & next steps for your global business.
]]>