TYPES OF GRANTS FOR BUSINESSES

Types of Grants or Assistance

Grants & Subsidies : One-time & renewable grants and subsidies when you receive this money, you don't have to pay it back. It's yours to use under the terms of the grant. The Government provides billions a year to aid Canadian product innovation. They also realize that some areas are more in need of economic development support than other areas. In order to support business expansion they allot billions a year to aid businesses to build & expand in areas all over Canada that need economic support. The greatest thing about these programs rests in the fact that once you are granted the money it is not uncommon to be able to get more grants from the same agency because you meet their program requirements.

Loans : Low- or no- interest loans are available to small businesses, & you may also be eligible for no-interest loans. These are repayable over a set period of time, but you pay back only the original principal. The government provides many options for financial assistance through financial agencies.

Tax refunds or tax credits: These programs offer a break at tax time which can free up your business cash flow. An area that is largely over looked by small business and the general public.
Awards: A presentation of an item of monetary value to a person or group persons for recognition of somebody's merit or an achievement in their field.
Apprenticeship/Mentor programs: Students earn an income while learning their trade. Skilled trades offer apprenticeship programs. Mentor Programs are offered by professionals in media, business, and education.

Bursary: Is an award of any monetary value given to a student on the basis of demonstrated financial need. Additional selection criteria may also be used.

Scholarships: Funds used to pay for higher education that do not have to be repaid. Scholarships are often awarded on criteria such as academics, achievements, hobbies, talents, group affiliations, or career aspirations.

Rebate: Rebate programs offer a percent of money back after the upgrade has been completed or the equipment has been purchased.

Government Insurance against business risks: With the backing of government insurance (available for low premiums or even no premiums), you may borrow money from a bank much more easily. Guaranteed government purchases of your product or service: An order of this sort guarantees cash flow, builds customer confidence in your business, & improves your chances of private financing.

Government Information & Services: These programs can offer many things that have monetary value & can help you build & grow your business. Some are training programs others let you use government consultants to build vision like a business plan. These are very worthwhile programs & are generally offered to anyone who is registering a business. These services are especially useful to start-up ventures.

Access to Resources: Sometimes equipment & facilities need to develop or research a product are far beyond your businesses capabilities to access through the government you may gain access to expertise, resources & facilities that are state of the art.

Conditionally Repayable Contribution: It's like a venture capitalist investing in your company but only wanting return on investment if your project is successful & makes you profit.

Grants in-lieu of Property Taxes: In many areas the government offers a break on property taxes to encourage investment. It is like getting the money as a grant since you would have had to pay it back otherwise.

Equity Financing: It's the government investing in your company but they are less anxious about the return on the investment so there is less pressure on you to deliver profits to them.

Relocation Grants: In some areas there are special funds made available for relocating your business.

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How to write a Grant-Winning Proposal

How to Write a Grant-Winning Proposal
Tips for Writing a Successful Grant Proposal
2003-11-01 v5n10 Ready to learn more?

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Once you know what money you want to go for and how you're going to present your case, you've got to make sure they read it -- and you convince them. Here are some tips

1. While everyone who is involved with the project should contribute information, input, and criticism -- stick with one good writer. This keeps the style consistent while making sure you include all key information.

2. Write in plain language. Bureaucrats are people, too! Keep it simple and clear. Drop any industry jargon and acronyms. Have someone outside your industry review it for clarity.

3. Keep it short. Long-winded, rambling proposals will lose your reader's interest and send them reaching for the next in the stack.

4. Keep things energetic and positive. This doesn't mean cramming your proposal with flowery adjectives. But point to strengths and ways to counter weaknesses. Use active verbs -- "We'll market to plumbers" is more powerful than "Our market will be plumbers". And vary sentence length to keep things moving.

The Small Business Funding Center grants permission to reproduce this article in its entirety only, with credit given to the Small Business Funding Center at www.grants-loans.org.

You can call us directly at 1-800-591-1266 , or e-mail us for information on Canadian government grants and loans for your new or existing small business.
You can also write us at: Small Business Funding Centre, 1500 Bank Street, Room 425, Ottawa, Ontario, Canada, K1H 1B8.