Government grants are funds awarded to individuals, companies, institutions, and others partaking in certain types of projects. This could be through both innovative activities as well as projects seeking (technological) advancement.
Lack of funding can be a problem for many companies, especially start-ups and small businesses.
Despite the fact that the application process can often be complex and specific, these grants can significantly contribute to both the growth and overall success of your company. If you believe you or your company is in need of funding, contact EVAMAX today to identify which government grants and benefits you are potentially eligible for.
Before submitting a grant application, it is important to understand how government grants work and what they entail. Below discusses some of the advantages and disadvantages of funding provided through government grants.
Advantages
One of the most significant, if not the most significant, advantages to government grants is the fact that the funding received can be non-repayable. Government agencies are often more willing to take the risk on start-ups and small businesses that banks/investors are not.
Certain types of financing, such as those received through specific non-repayable government grants, do not require the funding to be repaid. This can provide financial stability and certainty as well as allow companies to focus on other aspects of the business that they would not have been able to prior to the acquisition of government financing.
Related: 5 Tips in Identifying Small Business Grants in Canada
In addition, government grants are available to a wide range of categories and can be found regardless of the industry you are in. Websites such as Grants.gov and SBIR.gov provide thorough lists of funding available to your particular industry.
Whether you are involved with healthcare, science, education, etc. there are many resources available to companies looking to acquire financing. Depending on the grant, there can often be an unlimited amount of applications a company can submit to acquire the desired benefits.
Below is a compiled list of business grants per industry:
- Software & IT, Artificial Intelligence, Machine Learning
- Biotech, Lifesciences & Medical Technology
- Advanced Manufacturing & Engineering
- Cleantech & Sustainable Technologies
- Oil & Gas, Mining and Chemical
- Digital Media & Entertainment
- Food and Beverage
Disadvantages
Crafting the proposal is often the most difficult component of the application. Regardless of the nature of activities and projects being completed, the government will not grant you funds if you do not have a solid and plausible plan. It is absolutely critical for companies to complete thorough research pertaining to the government grant they are seeking, or outsource the work to a firm like EVAMAX who has a team of experienced consultants that will assist you in acquiring funding.
Government grants also often come with restrictions and guidelines. Even if you qualify for a grant, you can not necessarily utilize the funds provided on whatever you want.
Related: $100 Million in AI Funding Provided to Albertan Companies
Companies or individuals are required to consistently submit progress and tracking reports to the given agency that financed the grant. If certain regulations are not followed, the agency may be eligible to request a refund of the money they provided to you.
All in all, the benefits of government grants heavily outweigh the costs. The drawbacks related to the acquisition and use of government financing should not deter companies and individuals from seeking these grants.
As long as companies are willing to invest both their time and effort, they should apply for the government grants they are eligible for.
Related: Canadian Innovation Grants are Transforming Businesses Nationwide
The application process may include rejection on more than one occasion, however, companies should continue to try and find an appropriate grant that suits their needs.
