If you are either a start up (pre revenue) firm or an established small or medium (we’ll define medium a bit later) sized company in Canada you should be investigating, and using the Government of Canada small business loan program.
Why? We will give you 4 reasons – great terms, rates, structures and qualification criteria. Could you ask for anything better in Canadian business financing? We don’t think so and we have been a fan of the program now for years.
Many clients or callers requesting information on the program (the formal name is BIL / CSBF) often utilize the terms ‘grants’ when requesting info on the program. The BIL /CSBF program is not a grant. It is a special business financing program sponsored by Industry Canada (those good folks in Ottawa…). The program was developed by the government to assist the thousands of firms who might not qualify for what the finance folks call ‘traditional financing’ – aka “the bank!”.
We also promised you we would qualify the term ‘medium sized firm’ when it comes to qualifying for the program. In the case of the Small Business loan program any firm under 5 Million dollars in either actual or projected revenue still qualifies for the program. Naturally your firm has to be privately owned, and be considered a ‘for profit’ business. (We’re all ‘for profit’!)
As we said, many customers call looking for ‘grants’ – we’re all for free grant money also – we are sure it exists out there somewhere, we just have never found it. Actually, let’s clarify that, two great programs, S R ED, and film tax credits are non repayable credits you can easily apply for if you qualify for either of those credits. Those two programs are a discussion for another day though.
Typical client questions always include – how much can we get or apply for? What are the rates and terms? And what’s the process involved? Get ready for a short, simply and basic primer in all those three areas!
The Canada government small business loan has a maximum cap of 350,000.00 dollars. However, if you chose to use this financing for real estate you can actually receive 500k. We note that for many years the program had a cap of 250k and during the global recession (2008-2009) the government raised the limit on the program.
Many firms who are either new or have challenges might think the rates and structures are onerous under the program. Exactly the opposite… financing is at only 3% over prime, and from a term perspective you can go from 5-7 years, we typically structure 5 years as a reasonable term.
Penalties to pay back if you’re successful – There are none!
There isn’t a day when we don’t spend time advising clients on what can be financed under the program…that’s where a lot of mis-information exists. The program only covers equipment, leaseholds and real estate. We would add that software is included in the equipment category.
So who is using the program? Almost 8000 businesses did in 2010 – so you can be sure that the program works and is robust.
The greatest challenge around the program in our opinion has been the confusion on where and how to apply. We’ve completed transactions in a week and then heard from clients that they have spent months floundering on their processes in this type of financing. Speaking to a trusted, credible and experienced Canadian business financing advisor in the area of government small business loans will get you on the fast track to some of the best financing available in Canada today.
By: Stan Prokop
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Getting money to start a business is one the greatest obstacles an entrepreneur may face. There are so many options and red tape one has to go through, it can sometimes seem overwhelming at times. Having funds available when a business is young can mean the difference between the business failing or succeeding. Cash flow is one of the leading reasons a fledgling business fails. Businesses must have enough cash on hand so they can endure the tough times that all businesses eventually go through.
Some people believe, wrongly, that business grants are free money from the government. Although many do not have to be repaid, there are usually stipulations attached to the grant. The grant winner must adhere to certain guidelines in order to keep the grant in good standing. There is also a considerable amount of time and effort involved when one is requesting a government grant.
Also generally believed is that business grants are available to anyone who wants to start a business for any reason. This is not generally the case. If a person has an idea for a business and wants help from the government, a small business loan with a low interest rate is the best way to go. On the other hand, if your business is non-profit or you have an idea that needs to be expanded or a new technology needs to be developed you would be eligible for a grant that you would not need to repay.
There are cases where a government grant will be awarded if your current business can prove that it can create a new technology to help the economy. A business plan is very important in trying to secure a government grant. All deadlines and prerequisites must be strictly adhered to. Most unsuccessful businesses can blame not having a business plan for a great part of their failure. Also a lack of cash flow can become a huge hindrance, this is where grant money may have a huge impact.
When the government is shelling out free money for grants, they want to be certain that the potential business is going to add value or help improve the economy. It is up to the business owner to meet all deadlines and have a strong business plan to support what they are aiming to do. In conclusion, it can be a long road to obtain a government grant, but it does not have to be if you have your business plan in front of you and follow and meet all deadlines and requirements.
By: David Pierce
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The government and private foundations have grant money available to women and minority small business owners, or soon to be owners, who need assistance in starting or expanding their business. This is tax-free money that is provided to individuals in order to turn their ideas into profitable businesses. While grants are generally used in conjunction of a small business loan or other types of financing, they can help pay for new equipment and furniture, commercial space, and even for payroll.
Government grants are provided as interest free funds that have no repayment terms. There are specific terms that must be followed, but as long as the money is not used inappropriately, the cash can be provided to help your business succeed.
Regardless of income or credit, individuals who are at least 18 years old can qualify to apply for small business grant money. While grants for businesses in general are available, there are programs specifically to assist minorities and women who may have a harder time obtaining traditional financing. Because of the growth in business development by women and minority entrepreneurs, special interest groups exist to help these individuals specifically.
By contacting these organizations directly, you can find out what funding is available, what the qualifications are, and how to apply for them. Because there are hundreds of government agencies and private organizations that provided these funds, access to a current grant directory can help you quickly identify the available funds. By gaining access to the directory, complete guidelines and assistance is provided to ensure that the best possible application is submitted.
By: David Sklonic
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As an aspiring entrepreneur you have to realize the road ahead is going to be tough. While one of the hardest things that you have to do to start your small business is to get the funding that you need to start up. Most small-business owners are lucky enough to have enough resources such as surplus funds in their savings accounts to start their businesses. But for the majority of those business owners just like you and I, we require some help and assistance.
With the recent recession and the economy heading towards a downward spiral, getting the loan that you need to start your small business is going to be a very difficult road for you. But thanks to Uncle Sam there is a better choice out there for you. The government is going to offer you a small business loan grant. The benefits of getting a grant from the government is the fact that it never has to be paid back unlike a? normal loan from major banks such as Bank of America Wells Fargo etc.
Another benefit of getting a business grant is the fact that you can always apply for it year after year and it never runs out. The qualification process for a small business loan grant is relatively simple. The most important thing that you need to show them that you do need the loan in some cases they do require a business plan. Overall,? getting a small business loan grant from the government is a lot easier to go for than a conventional loan that requires credit check collateral and etc.
By: Cristian Carson
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The number or grants available for small businesses are enormous. The United States Government has many programs that assist small business owners with the start-up or expansion of their business. The Small Business Administration is a federally funded program that focuses on the business ownership among individuals that are neither socially or economically disadvantaged.
Minority women have a higher chance of getting approved for a small business loan than most men. This is because women are considered minorities. Minority grants are popular among any woman who strives to become an independent business owner, who owns at least 51 percent of the business.
Many private entities such as foundations and social organizations also offer some type of business grants to qualified applicants. There are rules and deadlines to adhere to. Grants are usually awarded to individuals business owners who may not be eligible for a grant.
In order for individuals to see if they qualify for a grant, they must submit a grant proposal. A grant proposal is formal letter, or business plan that outlines; how much money is needed, and what expenses will be paid from the grant amount. Grant research kits as well as other online resources are available at the public library and at various websites free of charge.
The Government tends to grant the majority of grants to individuals who demonstrate a concern to the nation or to their community, by providing long term assistance to unprivileged, socially, and economically disadvantage neighborhoods.
Neighborhood development grants that target educational assistance for the poor, and increased job skills are likely to be approved, especially if a minority or woman is the chief pursuer. Anyone can apply for a grant, the United States government requires that each individual complete a grant proposal packet, and adhere to all guidelines, and deadlines.
By: Jason Rajniak
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The US Federal Government offers a number of programs designed to make it easier for people to start and grow a business. By helping businesses thrive and providing the funding that they need, this benefits the economy as a whole by providing revenue and jobs. For business owners, getting a grant can make the difference between a business that does well and a business that struggles due to a lack of funding.
Unlike a small business loan, a grant never has to be paid back. Most grants have very specific requirements as to how you can spend the grant money, but as long as you adhere to these requirements the money is yours to keep free and clear.
In order to qualify for a government small business grant, you must be a citizen 18 or over, and be eligible to qualify based on the terms of the specific grant you are applying to. Most small businesses qualify for some type of funding. There are grants available for start up businesses as well as more established companies.
The process of applying for a government small business grant involves plenty of paperwork. After you find the grant that you will be applying for, you need to submit a grant application. It is helpful to note that there is no limit to the number of grants that you can apply for so if one doesn’t work out in your favor, you can freely reapply to others.
When applying for grants, you will want to make sure that you application is free of errors and follows the recommended style guidelines for a grant request. Having a resource such as the grant guide linked below at your disposal can help make sure that you are doing things the best way and save you a lot of hassle when it comes to figuring everything out.
After you apply, there is a wait while the government reviews your request for a small business grant. This wait can last weeks, but eventually they will come back with a reply and let you know if you qualified for the grant or not. Once you receive your grant, as long as you follow the specific terms the money is yours to keep without having to be paid back.
By: Jasmine Blanche
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Running a small business in today’s economy is difficult at best. The time inevitably comes when every business owner looks at his books and realizes that the money he needs just isn’t there. When you can’t qualify for a small business loan, it’s tempting to close the doors on your dream. But if you have a product or service that you really believe in, it’s important to keep your business open to the community. Government grants can make this possible even in the worst of economic times.
Many business owners shy away from grants because they usually require a written proposal. The task of preparing a proposal can be scary if you’ve never done it before. But when your only alternative is sacrificing your business dream and financial future, a proposal can be done.
If you’ve never applied for a grant before, the answer is simple. Hire a professional writer to prepare your grant proposal. There are professional grant writers who prepare grant applications and proposals on a full time basis. They know exactly what organizations are looking for and they can tailor your proposal towards the grant programs.
Hiring a grant writer is one of the best investments you can make in your small business. Paying a small fee to get a great proposal could provide you with thousands of dollars for your business. A professional writer has the knowledge to prepare a truly gripping proposal that will stand out from the dozens of other applications prepared by common people with no writing experience.
What would you do with a huge sum of government grant money? Would you use a business grant to remodel your offices? Do you need new supplies? Could you use the money to hire new employees or give faithful workers the bonus they deserve? Perhaps you could use the small business grant to pay for insurance for you and your family. Small businesses often struggle to provide these basic benefits to employees, but a grant can make it possible.
You don’t have to struggle to keep your small business alive in a failing economy. Just hire a grant writer and watch as the grant money comes rolling in. If you want to double your chances of success, have the writer prepare multiple grant proposals that you can submit to various grant providers. There is no limit to the benefits of getting a good proposal done by a professional. It is truly the key to getting the grant money you need and deserve for your small business.
By: Jarrett W Juarez
