The Canadian federal government and the largest four provinces (including Ontario) paid almost $29 billion in a year on “subsidies” which covers tax credits, grants, investments, etc.
There is plenty of funds available from different governmental levels to help businesses.
Governments give grants, loans, tax credits, investments, and in-kind help in order to promote business development and reduce unemployment and promote a wide variety of industry sectors.
While governments support an extensive range of business ventures, government funding usually comes into five divisions:
- Capital Investment
- Research & Development
- Business/Market Development (including working capital, exporting, etc.)
Ontario Government Grants
Similar to the federal government, the Ontario provincial government also makes its part to provide businesses a boost.
The Government of Ontario gives grants for setting up a business, hiring, training, capital investment, and many more. The province also has plans for particular regions, such as the Northern Ontario Heritage Fund, Eastern Ontario Development Fund, and others.
Following is an example of grants for Ontario businesses given by the provincial government:
Ontario Provincial Grants for Starting a Business
- Starter Company Plus gives a grant of approximately $5,000 for setting up a new business, expanding a current business, or purchasing a business. You have to produce matching funds.
- For students who want to set up a summer business, the Summer Company program gives start-up money to qualified youth between 15 and 29 years of age for summer business. Approximately $3,000 is accessible to those who commit to a specific number of hours of work.
Ontario Provincial Grants for Hiring
- The Canada-Ontario Job Grant Program gives matching funds to assist with training expenses for all sizes of Canadian businesses. A qualified, third-party trainer must conduct the training program.
- FedNor supports businesses with funding to hire youth interns under either the Northern Ontario Development Program or the Economic Development Initiative. FedNor gives part of the value for salary and employee benefit expenses for the intern for almost 12 months in a full-time position.
Ontario Provincial Grants Specifically for Northern Ontario Businesses:
- NOHFC (Northern Ontario Heritage Fund Corporation) provides funds to Northern Ontario businesses looking to perform applied research or activities needed to produce new technologies and bring them to the market.
- Use the Pilot Demonstration and Commercialization Projects program from NOHFC to get matching funds to overcome the risks connected with displaying and scaling up new technologies for commercial production in targeted sectors.
- Also through NOHFC, the Northern Community Capacity Building Program supports communities in Northern Ontario with economic increase. This program is only permitted to for-profit businesses that are in partnership with municipalities, other government agencies, or educational institutions.
- The NOHFC’s Strategic Economic Infrastructure Program funds strategic infrastructure projects that have a demonstrable net economic impact in Northern Ontario. For-profit businesses must form partnerships with municipalities or non-profit groups to be eligible.
- The Business Expansion Projects program from NOHFC enables existing businesses in Northern Ontario to get funds for projects intended at expanding operations through items like capital construction, training costs, or technology investments.
- With the NOHFC’s Small Business Start-Up Projects fund, new businesses in Northern Ontario may get grants to assist with starting operations in existing or rising priority economic sectors.
- Another NOHFC program is the Northern Event Partnership Program. It gives matching funding for events that support economic development in Northern Ontario. A for-profit business must partner with a government agency, educational institution, or non-profit organization to be eligible.
- The NOHFC Northern Ontario Internship Program gives wage subsidies to support businesses hire first-time, full-time employees who freshly graduated.
- When inquiring about a business loan and grant combination, the NOHFC has a program called Business Expansion Projects, which supports businesses to enhance competitiveness and create jobs.
Ontario Provincial Grants Specifically for Southern Ontario Businesses:
- FedDev gives funding for innovation and expansion of businesses in Southern Ontario, including those trying to advertise innovative products, technologies, and processes with the Business Scale-Up and Productivity Program.
- Use the Southwestern Ontario Development Fund to get funding support for business projects that support job creation, investment from the private sector, and business growth in the Southwestern Ontario geographic region.
Ontario Provincial Grants Specifically for Eastern Ontario Businesses:
- The Eastern Ontario Development Fund gives funding help for projects that produce jobs, invite private sector investment, and promote innovation in the Eastern Ontario geographic area.
Ontario Provincial Grants Supporting Early-Stage Technology:
- ENCQOR will provide funding to SMEs in Ontario that develop, show, or advance new technologies, products, processes, and services associated with 5G technology.
- OCE, through its Market Readiness Fund, gives investments in early-stage companies in Ontario in sectors such as information technology, robotics, artificial intelligence, health, and advanced manufacturing
- Another OCE program is called the Collaboration Voucher Program. It makes funding for companies to partner with research hospitals, universities, and colleges in Ontario for increasing access to approach industry challenges and increase productivity.
- The AV R&D Partnership Fund gives matching grants for projects associated with the development and demonstration of technologies in the connected and autonomous vehicle sector. Another part of this program provides matching funds for the commercialization of Ontario-developed technologies.
- The Ontario Disability Support Program Employment Supports fund gives financial assistance toward costs for business equipment, supplies, licenses, and certification requirements for those with disabilities.
Most people simply assume that just because you are a Canadian national and because you pay taxes that the government should provide you funding for your small business. While most wish it was like this, it is not and is far from it.
How To Apply Grant For A Small Business?
Before we can explain to you how to apply for a small business grant, it is necessary to understand that grants are not the only programs that are useful to a business owner either setting up a business or expanding it.
Most business owners prefer to “grant” because they believe that these programs are the most suitable for them since they do not have to pay the money back, it becomes the number one option.
Whereas there are several government grants that are non-repayable, there are other kinds of grants that you wish to be informed of:
- Repayable Grants
- Partial Contributions
- Conditionally Repayable
Other forms of funding to consider incorporate with tax breaks, relocation incentives, low interest, or no interest loans and government-guaranteed loans. All these options are good for a setting up or existing business owner to work towards their business as an alternative or in addition to government grants.
Since government grants are much more difficult to receive and usually concentrate on particular funding requirements, many people shy away and ultimately convert to the other kinds of funding that the government provides its entrepreneurs.
So let’s try to know how to apply for small business grants?
Step 1: Find out specifically what you require for funding and be very precise:
- Hiring and training costs?
- Paying employee wages?
- Paying marketing and advertising costs?
- Renovation and leasehold improvements?
- Help with cash flow?
- Purchasing tools, supplies, and equipment?
- Conducting research and development?
The more precise you are in your exploration, the easier you will be able to determine the funding programs that give the funding.
Step 2: Find out how much funding you require:
Asking for money is not an effortless task. Why would somebody provide you money? When you are attempting for funding, you have to be honest, reliable, sound enthusiastic but most importantly know what you are talking about and be correct.
split it down into particular requirements and try funding from a variety of programs.
Are you more inclined to receive 5 programs to give you $5,000 each for different requirements, or 1 program to give you $25,000 right away?
If you require a total of $25,000 as an example for your business to start up, your best hunt for funding help would be to divide it down into the particular requirements that you have; for example:
- $7,000 for hiring employees and paying them wages for 2 months
- $3,000 for office space
- $10,000 for purchase of tools and equipment
- $2,500 for marketing costs
- $2,500 for startup cash flow
Now this provides you an opportunity to apply to many programs. Not all funding programs support every purpose, so once you break down your funding requirements, you are more likely to be able to apply to many programs that considerably enhance your possibilities of success.
Step 3: Ensure you have a business plan ready
Without a business plan, no business either startup or existing will work.
Having a business plan designed by an expert could get very pricey, it could be about a few thousand dollars. So it may not be worthy to pay $3,000 for getting a plan created to apply to a $3,000 funding program. So other solutions to get a business plan created should be considered.
If you are a startup and want the most help, we recommend you using the most user-friendly business plan tool which is offered by many websites, and also offers you specialist supervision.
Step 4: Take expert assistance
You might have heard from successful entrepreneurs that the best thing they have ever done is to divide the task. Leave the small business funding search, the business plan search and all that complex stuff to the experts, while you concentrate on your business.
Taking expert assistance is the quickest way that will get you closer to rising your business up and managing and funded by the government.
We hope this research on Ontario government grants for small business will help you to know about this funding system and how to apply it for your business. If you have any query feel free to contact us