FAQs: Canadian Grants and Loans for Businesses
Frequently Asked Questions: Canadian Grants and Loans
Navigating the Canadian government funding process can be challenging for businesses of all sizes. Optimizing the planning, writing, submission, and reporting processes can take considerable time and resources; however, there are tremendous benefits associated with accessing funding regularly. Companies should take time to familiarize themselves with the options available when completing the Canadian government funding process to ensure they achieve the best possible outcome.
If you have questions about accessing business grants and loans, please review the information on this page, which is frequently asked about by Canadian companies. Our library of small business funding resources can also help with independent evaluation of government funding programs. When you’re ready to discuss how Ryan can improve the funding process, we would love to learn more about your business on our Get Funding Help page.
General Questions
What Canadian government grants and funding programs are available? How do I find out more information?
Both the provincial and federal governments offer small business funding programs and services. There are two common ways companies search for Canadian government funding programs: by their province/operating region and by their project/investment area.
Companies can also refer to our library of programs for a comprehensive view of the various small business funding grants and low-interest repayable loans available to Canadian businesses. These programs can be applied to a wide variety of activities, such as hiring and training, research and development, capital investment, and business expansion.
What are the eligibility factors for Canadian government funding?
To be eligible for most Canadian government funding programs, businesses need to be incorporated for at least two years and have at least 15 employees on payroll, although each program has its own eligibility requirements. This is to establish the financial stability of the organization. Generally speaking, most Canadian government grant programs are designed to support incorporated small and medium enterprises (SMEs) and large corporations.
Please consult our Canadian Small Business Funding Guide for more information about funding eligibility criteria, and access our blog for program-specific eligibility factors or read our blog, What are the Eligibility Criteria for Canadian Government Funding?
Do I need to have more than 100 employees to apply?
No. Most programs support businesses with at least 15 employees, but there are other programs, such as for hiring and training grants, that support businesses with 1 to 500 employees. Canadian government grants and loans are tailored to support small businesses, and each has its own eligibility criteria.
Are Canadian small business grants only applicable for incorporated companies?
Yes, typically Canadian government funding programs will only approve applications from businesses that have been incorporated for at least two years. However, there are also small business funding programs available for unincorporated businesses, although this funding is limited.
If you are unsure about whether or not your Canadian small business qualifies for grants and loans, contact us to learn more.
Is my financial performance important? Do I need a business plan?
To be awarded Canadian government funding, a business’s financial health is important. Generally, a current balance sheet and income statement must be submitted with the application. At a minimum, some financial information will be required, such as a letter from your financial officer.
There are also several internet resources to support the planning components. As part of our process, we assist with the development of customized business and project plans to act as supporting documentation for your funding application where necessary.
How does Canadian government funding compare to SR&ED tax credits?
The process for obtaining Scientific Research and Experimental Development (SR&ED) tax credits and incentives is significantly different. It is often more complex and time-consuming to pursue tax refunds compared to the typical Canadian government grant process. We’ve also seen the complexity of the claims process increase in recent years, while the total value of claims has been decreasing.
Additionally, business owners are only entitled to SR&ED tax credits once per year. As such, no immediate or regular cash flow improvements are gained. Small business grants and Canadian government funding programs are available at different points throughout the year and can provide immediate cash flow impacts and direct support for upcoming projects.
Types of Business Funding
Can I obtain business expansion funding support with Canadian government grants and loans?
There are a number of small business grants and repayable loans that focus on business expansion. These types of funding programs often seek to help businesses increase production to serve a greater portion of the domestic or international market. Projects generally include the expansion of facilities, adoption of innovative equipment, hiring and training employees, and development of new markets through ambitious marketing and sales efforts.
A primary objective of government funding is to retain highly skilled talent in Canada, increase the number of skilled jobs in Canada, and ensure their long-term sustainability. As long as expansion plans ensure jobs are maintained at a Canadian-based operation, the financing options for expansion are significant.
What type of business activities and expenses do Canadian government funding programs support?
Canadian government funding programs support a wide range of business activities and expenses. There are grants and/or loans for hiring and training new and existing employees, as well as for research and development aimed at the innovation of new projects and products in various industries such as automotive, clean tech, and manufacturing. There is also capital investment funding to support new tech adoption, as well as funding programs like CanExport that support global business expansion for economic growth.
Do Canadian government funding programs support startups?
Yes, but not to the same extent as established SMEs. Generally, you need to be incorporated for at least two years to apply for non-repayable funds (small business grants). However, there is a considerable amount of funding available to support activities such as product and process applied research, engineering design, technology acceleration, product testing, certification, marketing studies, proof of concept, piloting and demonstration, and pre-commercialization activities.
You can learn about many of the opportunities available for Canadian startups by reading our blog, Do Canadian Government Funding Programs Support Start-ups?
I am interested in hiring recent post-secondary graduates. Are there Canadian government funding programs available?
Across Canada, there are various hiring grants to subsidize the onboarding of new graduates. These programs are often specifically targeted towards particular industries; however, some are more general and can support a wide range of employers and employees. Many government-supported programs require that you find your graduate before applying. This is not optional — it is part of the process.
For most programs, graduates should have graduated within the last 3 to 5 years, and some programs have age requirements as well — most often under 31 years.
Post-secondary hiring funds are most plentiful in the spring and summer each year when the majority of new graduates are ready to enter the workforce. Companies can plan to ramp up recruitment during this period to get the most value out of Canadian business hiring grants.
Do Canadian government funding programs only support research and development?
No. Funding programs currently support many different areas of business, from research and development to capital investment, business expansion, and hiring & training. Training, lean manufacturing and design, export expansion, workforce expansion, IT best practices, and energy efficiency projects are common activities that receive funding.
That is not to say the government does not recognize the importance of R&D in terms of our economy. Retaining talent in Canada depends on collaboration and partnerships with innovative businesses and R&D facilities at our post-secondary institutions.
Is there government support for commercialization and development?
There is more support for innovative research and development now than ever before in Canadian government funding. Disruptive technology development, demonstration, and deployment are key areas of the government’s strategic investment initiatives. The Industrial Research Assistance Program (IRAP) is generally a great program to start with, as it supports research and development projects of all sizes. Browse research grants and repayable funding to explore a wider range of options.
Are there Canadian government funding programs available for the retail or distribution sector?
Not usually, since the government evaluates risk in a similar way to how banks do. The government likely sees retail as higher risk, so funding is limited in this case. However, this doesn’t mean all avenues of funding are blocked off. There is a focus on regional centres like CFDC and Small Business Centres as well. You may also be able to leverage hiring & training funding.
Are there Canadian government funding programs available to support manufacturing companies?
Many Canadian business funding programs favour industrial and manufacturing companies. This is because product design, research, development, and production enhancement projects are most likely to lead to spin-off benefits throughout the Canadian economy. Manufacturers can start the government funding process by searching for funding by project type or by reading our blog, Are There Canadian Government Funding Programs that Support Manufacturing Companies?
Because of the high number of potential government funding programs manufacturers can apply for, we advise contacting Ryan to build a customized funding strategy aligned with your business’s upcoming growth opportunities.
I am in a distressed manufacturing region. Does this play a role in the approval process?
Depending on the objectives of the funding program, this could be a significant factor in the approval process. Usually, this is related to larger programs that establish a repayable loan with at least 50% support from the business. Grants for small businesses and Canadian government funding programs usually stress the importance of job creation, so this may be a more important factor than region, depending on the program.
Application Process
How do I know which programs are suited for my business and growth strategies?
The first step in the Canadian small business funding process is to determine your priorities. Identify your business plans and projects for the next 12 to 24 months, then review programs to see what fits, and select the Canadian government funding programs that best suit your projects. Using external support services can help streamline this process. Government Funding Planners can curate a list of programs that provide the most support for your projects, significantly reducing your internal labour requirements.
Is the application process complicated?
The application process is unique to each project and program. Review the requirements for each application or program and evaluate the risks, benefits, timelines, and objectives before you begin.
Most government funding applications require a compelling story to be told about a particular project. Companies should focus on explaining key benefits, including how productivity, innovation, and employment will change as a result of the project. Speaking directly to the specific focus and evaluation criteria of each program will help demonstrate high-quality projects. This is why engaging external support services, such as Ryan, is so valuable.
How long do I have to wait for approval on these programs?
Approval periods depend on the scope and complexity of your project and the Canadian government funding program. Some programs respond in as little as 48 hours, some take 4 to 6 weeks, while others may require a 4 to 10-month waiting cycle once the online application is submitted.
You should carefully research this information to set clear expectations and ensure you carry out the correct activities for the specific funding program, so there are no additional delays. Many grant and loan funding programs will not fund activities that have already occurred. If you are looking for retroactive funding, tax credits and incentives are your best options.
Additionally, depending on the program, there may be specified intake periods during which applications are accepted, so you will need to time your application and project accordingly.
What is the success rate for approval?
This depends on the program you apply for and whether you correctly address the program objectives and critical factors, such as eligible activities and expenses. Even if your application meets all of the program criteria, there is no guarantee that your application will succeed. However, there are steps your business can take to maximize your funding success rates.
Before you apply, be sure to carefully review the objectives of the funding program. If you cannot fully meet the requirements, move on to the next program. When you find a program where you can match all the criteria, your success rate will be much higher. Need support? Contact our team at Ryan to identify the government funding programs and support the application process.
Does the government track progress once I am approved?
Yes, but tracking methods vary. Some programs require reports each month, some at pre-established milestone dates, and some only at the end of the program, when results must be documented. Progress tracking is often related to how the money is dispersed. Ryan can provide insight into the reporting process and assist with the follow-up necessary to access funding contributions. This is one more benefit of consulting government funding support.
How does a business determine the range of funding available to them?
As there are many different Canadian government funding programs available to support a range of projects and business activities, there may be multiple programs that your small business is eligible for. If you’d like to determine what you are eligible for, please contact us directly.
Canadian Government Funding News
Funding Resources
Business Funding Guide
Get the complete guide to learning about Canadian government funding.
Types of Funding Programs
Compare and contrast grants, loans, tax credits, and other incentives.
Navigating the Process
Follow this roadmap to the government funding application process.
