For small businesses especially, identifying and acquiring grants can be very challenging. There is no single exhaustive list to consult. Also, every industry contains different businesses eligible for different grants.
Acquiring funding through contributions and subsidies can be difficult considering many Canadian grant programs require a matching contribution of some sort. Outsourcing knowledgeable consultants to research the best grants for your company is a potential solution for small businesses having difficulty in pinpointing funding.
With the help of experienced firms like EVAMAX, companies are more likely to successfully identify and acquire the financing they desire.
Listed below are the five tips for identifying Canadian small business grants according to The Balance SMB.
1. Know Your Terminology
It’s uncommon for Canadian grant programs to simply be listed as “small business grants” online. There is often research to be done and companies should be knowledgeable of keywords to look for.
When seeking subsidized funding, look for terms such as awards, contributions, shared costs, subsidies, rebates, tax credits, and non-repayable loans. It is important to know what you are looking for before investing your time in conducting research.
2. Know Where Your Business Falls on the Grant Priority Scale
Depending on the nature of your business, where it is located, and the industry it falls in, the availability of grants your company is eligible for can vary.
For example, government and small business grants tend to be plentiful in industries such as agribusiness, environmental technology, and biotechnology. Companies in industries such as retail, however, may find the availability of small business grants to be scarce as their industry is not as heavily supported as others.
Similarly, the location and nature of your business can also determine the eligibility and likelihood of acquiring financing. The number of assistance programs available varies in accordance to where they are located.
For example, the Northwest Territories offers a grant of up to $15,000 per year for all potential entrepreneurs in the territory. This program is exclusive to the nature of the business, entrepreneurship, and also the location, the Northwest Territories.
3. Use Hub Sites To Search
It is important for companies to use the research opportunities and resources at their disposal. Government hub sites, like the Industry of Canada website, can provide a nearly exhaustive list of financing your company is eligible for, including small business grants.
The government assistance page helps you narrow your search and identify the grants available to you based on the criteria you provide.
4. Look Within Your Particular Industry
As stated previously, different grants are available to different businesses depending on the industry they are in. Rather than searching for an exhaustive list of all small business grants, you can tailor your search to specifically within your industry.
Again, companies can use government hub sites that will generate a list of grants in accordance with your industry name and NAICS (North American code). By answering questions regarding your location, business type, type of funding, amount desired, etc. the government assistance page will generate the appropriate grants corresponding to the criteria you provided.
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
5. Position Your Business to Take Advantage of Small Business Grants/Tax Incentives
There are substitutions to small business grants that still provide the financing desired, such as the Canadian SR&ED program. The Canadian government offers one of the most generous tax incentive programs in the world in which they reward companies partaking in innovative activities or technological advancement through tax deductions, tax credits, and/or refunds.
The SR&ED program is often preferred in comparison to small business grants as it does not require project approval prior to commencement but rather you can carry out your project and then make the appropriate tax claim after.
Related: Why Choose EVAMAX SRED Consultants?
At EVAMAX, our team of specialized SR&ED and grants consultants can help identify and acquire the potential benefits your company is eligible for.