Accessing Grants for Your Small Business

Finding and securing funding is a vital part of starting any small business. You need funds to get your operations off the ground and to grow over time. When it comes to small business grants, however, there are a lot of misconceptions. While there’s no such thing as “free money,” there are specific programs and incentives that could help very select types of businesses. Let’s dive into the world of grants with some handy tips to get you started!

Can I Get a Grant to Start My Business?

While there aren’t general grants to start any business, there are plenty of sector-specific and eligibility-based programs available. Each grant program runs independently and has very specific criteria you need to meet.

One thing to keep in mind: there’s no single entity responsible for handing out grants. You’ll have to do a little digging to find opportunities that fit your business. The government is one source, but non-profits, municipalities, and private organizations can also offer grants and subsidy programs.

Grant Resources You Should Know About

To help streamline your search, here are a few directories and funding programs that can connect you with the right opportunities.

These resources are a great place to start, but don’t forget that grants are very specific and competitive. The next step is understanding grant eligibility.

Grant Eligibility: What You Need to Know

There is no one-size-fits-all when it comes to grants. Ensure you understand the conditions that come with the grant—these can include how the funds are spent, timelines for completing specific activities, or other stipulations that may affect your business operations. If you’re unsure about anything, seek clarification before applying. Here are some factors that could influence your eligibility:

Location: Grants can be specific to certain areas. For example, some are only available to businesses in Alberta, or even more localized areas like Red Deer County or Calgary.

Level of Government: Grants can be offered at various levels of government, including federal, provincial, and municipal levels.

Industry Type: Many grants are industry-specific. For example, there may be grants available for businesses in agriculture, technology, tourism, or other sectors. Make sure the program is a good fit for your industry.

Business Structure: Grants may be available to different types of business structures such as non-profits, corporations, or sole proprietorships.

Stage of Business: Some grants are targeted at businesses in specific stages of development, whether that’s pre-startup, startup, or existing businesses looking to expand.

Investment: Many grants require that your business contribute a certain percentage of funding to match the grant. For instance, you may need to invest 50% of the total project cost to qualify for some programs.

Type of Activity: Certain grants may be designated for specific activities like hiring staff, conducting research and development, expanding operations, or adopting new technology.

Demographic Group: Some grants are aimed at specific demographic groups, such as youth, women, people with disabilities, or businesses in rural areas.

Government Priorities: The government may prioritize certain areas at different times, such as funding for businesses impacted by natural disasters or those needing to comply with new regulations or legislation. Keep an eye on these changing priorities to find relevant grants.

Availability: The availability of funds is another key factor. Some programs may have limited funding available, or they may be based on a first-come, first-served basis. It’s important to check if funds are still available and how many applications have already been submitted.

Additionally Specified Purposes: Certain grants may be designed for specific purposes, such as providing wage subsidies, reducing environmental impact, or assisting with export activities. Be sure that your business activity matches the specific objectives of the grant.

Personal Investment Is Key

Grants usually operate on a formula like “Spend Some Money = Get Some Money Back.” This means you must have funds available to invest in your business to receive grant funding. It’s important to note that there are no guarantees with grants. Even if you find a grant that applies to your business, complete the application process, and receive funding, there will be stringent conditions on how the funds can be used, as well as reporting requirements. You’ll want to ensure that your business can sustain itself even without the assistance of grants or other non-repayable funding.

Be Wary of Scams

Unfortunately, there are scams out there. Some private businesses may claim to offer “free money” or access to a wide variety of grants, charging a fee for their services. If it sounds too good to be true, it usually is. Buying into these schemes often leads to disappointment, as there is a good chance the grants they promote won’t be applicable to your business. For more information, check out this article from the Competition Bureau on companies that promise government grants and loans. You may also want to check the rating of these businesses through the Better Business Bureau.

Other Financing Options

Searching and applying for grants can take a significant amount of time and energy. More often than not, there aren’t many grants applicable to your business. But don’t worry — there are other ways that you can finance your business venture! Check out our resources on financing your business. Be creative and don’t be afraid to think outside the box when it comes to financing.

Need help navigating your financing options? We help thousands of business owners every year with financing inquiries, we can help you too. Book a free consultation with a Business Advisor!

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