Types of Business Funding Available in Canada and Ontario

What Are Business fundings?

Business funding are non-repayable and repayable funds or products disbursed by one party (typically a government department, corporation, foundation, or trust) to a recipient. Usually, a recipient can be a business, organization, or individual. In Canada, there are several categories of business funding available, including:

• Federal Government funding: Available to all eligible businesses across Canada, focusing on large-scale projects or industry-specific growth initiatives.
• Provincial Government funding: Each province has its own set of business funding programs. For example, Ontario provides funding for startups, digital transformation, and local business support.
• Private Sector and Industry-Specific funding: Many large corporations and industry organizations offer funding to businesses in specific sectors, such as technology, agriculture, or the arts.

Business funding for Entrepreneurs are a vital tool for fueling business growth. However, they are often competitive, so understanding how to apply and demonstrate your business’s value is essential.

Funding Available for Ontario Business Owners

Ontario Digital Main Street Grant

Overview: The Digital Main Street grant program provides businesses with $2,500 to support digital transformation. This includes upgrading websites, e-commerce platforms, and digital marketing strategies.

Eligibility: Small businesses with a brick-and-mortar location in Ontario are eligible, provided they meet certain criteria such as revenue thresholds and digital project scope.

How to Apply: Applications must be submitted through Digital Main Street’s online platform. Businesses are required to submit a digital assessment and outline their project goals.

Funding Available for All Canadian Business Owners

Canada Job Grant

Overview: The Canada Job Grant helps businesses provide training to their employees, covering up to two-thirds of training costs. The maximum government contribution is $10,000 per employee.

Eligibility: Businesses of all sizes across Canada can apply for this grant. Training programs must be directly linked to improving the skills of the workforce to contribute to the business’s growth.

How to Apply: Businesses can apply through their provincial or territorial governments. Application requirements include a detailed training plan and cost estimates.

Canada Small Business Financing Program (CSBFP)

Overview: This initiative helps small businesses access loans to finance various business expenses, including purchasing or improving equipment and property. The government shares the risk with lenders, making it easier for businesses to secure loans.

Eligibility: Small businesses with gross revenues of $10 million or less can apply.

How to Apply: Applications must be submitted through financial institutions, such as banks and credit unions, with government backing.

Funding for Youth Business Owners (21-29 years old)

Futurpreneur Canada

Overview: Futurpreneur Canada provides financing, mentorship, and support to young entrepreneurs between the ages of 18 and 39. They offer funding up to $60,000 and a two-year mentoring program to help guide entrepreneurs through the early stages of their business.

Eligibility: Youth entrepreneurs aged 18 to 39 with a viable business plan are eligible to apply. Applicants must be Canadian citizens or permanent residents.

How to Apply: Applications are submitted through the Futurpreneur website, and applicants must provide a comprehensive business plan, financial projections, and personal financial statements.

10-Step Guide for Applying to Business Funding for Entrepreneurs

Securing business funding requires preparation and an understanding of the funding application process. Here’s a 10-step guide to help you apply successfully for business fundings:

1. Identify the Right funding: Research the funding available for your specific business type, whether it’s a federal, provincial, or private funding. Ensure you meet the eligibility criteria before applying.
2. Prepare a Business Plan: Most funding applications require a detailed business plan outlining your goals, financial projections, and how the funding funds will be used. Make sure your business plan is clear, well-organized, and tailored to the funding requirements.
3. Gather Financial Documents: Funding typically requires supporting financial documentation, including profit and loss statements, cash flow projections, and personal financial statements. Be prepared to provide detailed information about your financial situation.
4. Write a Strong funding Proposal: Your funding proposal should clearly explain your business objectives, how the funding will help you achieve them, and what impact the funding will have on your business and community. Be sure to follow the application guidelines carefully.
5. Submit the Application on Time: Ensure that your funding application is submitted before the deadline. Late applications are rarely considered, so it’s important to keep track of the deadlines for each funding.

After Submission of Funding Application

1. Follow Up After Submission: After submitting your application, follow up with the funding organization to confirm that your application was received. Some funding have additional steps, such as interviews or presentations, so be prepared to participate if required.
2. Engage with Mentors: Many funding programs, especially those for youth, women, and minority entrepreneurs, include mentorship or training components. Take advantage of these opportunities to strengthen your business plan and increase your chances of success.
3. Be Transparent About Finances: Transparency is key when applying for funding. Ensure that all financial information is accurate and that you are clear about how the funds will be allocated within your business.
4. Track Your Application: Some funding programs allow you to track the status of your application online. Stay informed about your application’s progress and be ready to provide additional information if requested.
5. Report Back on funding Usage: If you are successful in securing a funding, you may be required to provide reports on how the funds were used. Make sure to keep detailed records and comply with all reporting requirements to maintain eligibility for future funding.

Frequently Asked Questions (FAQ)

1. What types of businesses are eligible for funding in Canada?
   • Funding are available for a wide range of businesses, from startups to established companies. Specific funding may be available for technology, healthcare, manufacturing, and more.
2. How long does the funding approval process take?
   • The time frame varies depending on the funding. Some funding may take a few weeks, while others can take several months to process.
3. Can I apply for multiple fundings at the same time?
   • Yes, you can apply for multiple fundings simultaneously, as long as you meet the eligibility criteria for each one. Be sure to keep track of deadlines and submission requirements.
4. How can a newcomer apply for business funding in Canada?
   • Newcomers can apply for funding through support programs or government initiatives such as the Start-Up Visa Program. Many funding specifically target newcomer entrepreneurs to help them establish businesses in Canada.
5. Are there fundings specifically for online businesses?
   • Yes, funding such as the Digital Main Street funding and other technology-related programs can help businesses looking to enhance their online presence or sell digital products.
6. How do I know if I’m eligible for funding?
   • Check the eligibility criteria for each funding carefully. Fundings often have specific requirements based on industry, business size, geographic location, and the type of business owner.
7. What documents are required to apply for funding?
   • Typical documents include a business plan, financial statements, proof of registration, and sometimes personal financial information. Always check the specific requirements of the funding you’re applying for.
8. Can fundings be used to hire employees?
   • Yes, some fundings allow businesses to use funds for hiring and training employees. Programs like the Canada Job funding specifically support workforce development.

Conclusion

Business funding provide an invaluable source of funding for entrepreneurs across Canada, offering the financial support needed to start, grow, and scale a business. You can be a young entrepreneur, a woman in business, a newcomer, or a minority business owner.  There are fundings available to help you succeed. By taking the time to research and apply for the right funding, you can access the resources needed to build a thriving business.

Looking to apply for business funding? Contact Futura Business Services for expert guidance and support throughout the funding application process.  Let us help you find the right funding to fund your business and achieve long-term success.  Make an appointment below to get started.