Understanding The Different Grant Programs Of The Canadian Government

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However, before you apply for grants and subsidies, it would be best to understand first the different forms of grant programs provided by the Canadian government. This way, you can choose wisely which grant program would be suitable for your business needs. Understanding the different types of official grants of the Canadian government will also help you to create appropriate proposals that will qualify for subsidies. This way, you will spare yourself from the trouble of applying for a grant only to find out later that your business is not qualified. You can also pursue government loans and financing options in case you did not qualify for Canadian government grants. 

One of the easiest grant programs that you can avail from the Canadian government is the one time grant subsidy. This type of grant is ideal for small businesses that need short term financing for a specific project. Normally, you can use such grant to finance staff training, provide wage subsidies, and hire personnel for a special project. You need not repay a one time grant but the amount that you can get is also limited. But for very special projects and training needs, government subsidy through one time grant would be better than acquiring fresh loans or regular financing. Usually, staff training and one time projects only require a small amount so this type of grant could cover the expected expenses for your new project. 

The Canadian government also provides renewable grants. Again, these grants are different from loans but some programs may require partial repayment or some remuneration for the government. A renewable grant is best if you have a recurring project or a long term project. You can get a Canadian government grant at start up then renew the grant during your expansion phase. You can also use a renewable grant for acquiring new equipments and machineries for an ongoing project. It is more difficult to secure a renewable grant but if your documents and record keeping are in order, then there is no reason why you can not apply for it. 

The other two types of government grants are Equity financing and repayable contributions. These two types of grants may require some form of repayments. For equity financing, the government can get repayment from shares of stocks of the business or will get a few percentage from the net profit of a company. Repayable contributions on the other hand have more defined repayment schemes. Usually, the government will stipulate the terms of the grant and will seek repayment if your company becomes profitable.