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Are There Government Grants and Loans For Canadian Businesses?

Guest post by: Stan Prokop

Article Overview: The articles discusses the availability and reality around government grants and loans for Canadian business .

Are There Government Grants and Loans For Canadian Businesses?

I am often asked by customers if there are grants and loans available for their business in Canada. On many occasions these firms are either a start up or pre-revenue. There is a general belief that there is 'free money' out there, and people are trying to find it! I categorically believe there is no free money available - if that was the case can you just imagine?!

However, there are some excellent programs, two in particular, that in our opinion are the two best government programs for Canadian business in the SMALL MEDIUM ENTERPRISE ' SME' sector.

The Canadian government has allocated hundreds of millions of dollars into what is known as the CSBF Loan program. The government provides a lot of data at its website around the availability of the program, how it works, and who is eligible.

While some of the information might seem overwhelming there is a lot of assistance available. For the purposes of this article we will share that the program is available to all new or established firms with revenues under five Million dollars. We note also that the program does not apply to publicly listed companies.

Most people that are familiar with the program might not know that in the current 2009 world economic crisis the government increased the amount of these loans to $ 350,000.00 and in some cases $ 500,000.00.

How can you qualify for the program, and, more importantly, do you qualify?

Customers need to review the classes of assets that can be financed. The true power of the program is that the rates are only 3% over prime, currently in the 5% range. Terms of repayment are 5-10 years, and, are you ready, a full personal guarantee of payment is not required!

Typically these programs are used by companies to acquire assets, improve their business, purchase or develop software, and even in some cases buy real estate.

Do Canadian business owners know that the government can assist them in purchasing business real estate with limited guarantees and great rates and terms? We don't think so!

If business principals feel they are adequately prepared to source out this programs financing power we strongly recommend that they begin this process. However, not everyone has the time, financial skills or accumen, and the ability or comfort level to complete this financing.

Those people should seek out the aid of a trusted advisor and business financing expert in order to maximize their participation in the program.

Let's get back to free money! Does it exist? Again, not really. But would you like to receive a check from the government for any processes, research or innovation that your firm has developed? If so you want to maximize your participation in the governments SR ED tax credit program. We will talk more about this program in an upcoming article.

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Article Tags: Canada, Canadian business, governemnt loans, government grants



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Re: I need a mailing address for office space in Toronto - Jamie, I hope someone replies that has an idea or even experience with this question. I am in need of the same concept. I need a mailing address in Canada and then register our business with the Canadian Government to begin selling products in Canada utilizing Canadian monies. Someone must have already accomplished this goal - share your success with others. Dennis
Research & Dev Tax Credit - at No Cost (Canada) - Brian, I have a colleague that can provide you guidance and even assist in maximizing a R&D Tax Credit from the Government of Canada (If you are Canadian). All this at No Cost to You. I know her well and have referred other people to her. She's got plenty of experience in the field. If you're interested (anyone else on this forum too) just send me a PM and I will share her details with you.
Re: Can someone explain Search engine optimization to me? - Hi, Ask yourself, "What is the goal of a search engine like Google?" A search engine's goal is to provide the most related (or best) web page results when someone searches. Do you think people are searching for "Auction Cars Government" or "Government Car Auction." In fact type those keywords into Google with the quotation marks. You will find that Google gives different results for each keyword phrases. Granted you get many of the web pages ranking the same but there is a difference. My answer is, use "Government Car Auction" or even "Government Seized Car Auction" because that is what people are searching for. That is how the majority of the indexed pages use. That is what makes sense when you read the phrase. Jeff
New Small Business Topic - Hello everyone, I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section? Here's a list of what we currently have: Angel Investors Branding Bank Loans Business Coaching Business Plan Franchises (New) Insurance Legal Marketing Public Relations Sales Small Biz Loans Venture Capital
Re: Government Grants; sources and experiences - Quoting two investment experts on msnbc discussing grants for small business recently: Ken Yancey, CEO of SCORE "I've been doing this for 16 yrs and never met anyone that got a grant." Phil Town, bestselling investing author, "...must be 20-30 websites about U.S. grants. I think they're all scams." Government grants are not available for for-profit start ups. Grants that are available are generally for very specific geographic areas and/or for specific development (environmental for example) and/or for non-profits. These grants are usually meant to create jobs for under developed areas. I hate to see so many entrepreneurs waste valuable time and resources chasing non existent grants. When the CEO of SCORE says he never met someone that got a grant, it's time to sit up and listen. This is actually the very reason the new funding source (below) was created.


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