How to Get a Small Business Grant in Canada

A common challenge faced by small business owners in Canada is the inability to access the funding they need. When considering financing options, business grants are often sought after, primarily because they do not need to be repaid. In this blog, we will explore a few of the most widely accessible small business grants and government-run initiatives in Canada, as well as providing additional resources to find funding for your business.

Canada Small Business Financing Program (CSBFP)

Although not a grant in the traditional sense, the Canada Small Business Financing Program (CSBFP) is a government initiative designed to help small businesses access the financing they need. By sharing the risk with lending institutions, the CSBFP encourages financial institutions to provide loans to small businesses that might otherwise struggle to secure funding. With a maximum loan amount of up to $1 million, the CSBFP is a great starting point for small businesses seeking financing.

Industrial Research Assistance Program (IRAP)

For Canadian businesses engaged in technology-driven innovation, the Industrial Research Assistance Program (IRAP) is a great resource to check out. IRAP offers financial assistance and advisory services to help businesses develop and commercialize new technologies. The program provides funding for research and development projects at various stages of the innovation cycle, with support tailored to the specific needs of each business.

Eligible companies must be incorporated, profit-driven, and have fewer than 500 full-time employees. They should also be aiming to grow by developing and commercializing innovative products, services, or processes within Canada.

Women Entrepreneurship Strategy (WES):

The Women Entrepreneurship Strategy (WES) program in Canada aims to support and empower female entrepreneurs across the country. Administered by the Government of Canada, this initiative provides financial assistance, resources, and mentorship opportunities to help women start, grow, and scale their businesses.

A key component of this program is the Women Entrepreneurship Loan Fund, which provides loans of up to $50,000 for the purpose of starting or growing a business. Additionally, the WES also provides services to help female entrepreneurs expand their networks, and enhance their skills through specialized training programs.

Small Business Grant Resource: Get Granted

The variety of grants available to small business owners in Canada is vast and goes beyond what is administered by the Government of Canada. This can make the process of finding grants time-consuming and overwhelming. To help solve this problem, Granted Consulting created GetGranted: an exhaustive database of all grants available to small businesses in Canada. They also created a comprehensive guidebook about small business grants in Canada, which is a fantastic resource for business owners seeking funding.

The Limitations of Small Business Grants in Canada

While grants are attractive to business owners because they are essentially “free money,” they are often accompanied with limitations that may render them irrelevant to many business owners. A common drawback of small business grants is that the funds must be used for a specific purpose, such as hiring, training, or market expansion, which may not align with the reason that the business needs funding.

Furthermore, the adjudication process for grant approval can be lengthy, often taking several months, which may delay critical business activities. The availability of grants is also limited, with specific intake periods, which means applications may be closed when a business owner is looking. In many scenarios, obtaining a loan will be a small business owner’s best bet for quick, convenient financing.

Quick and Convenient Small Business Financing with Merchant Growth

If your business is ineligible for grants, or can’t meet the stringent requirements of a bank loan, an online business loan from Merchant Growth may be a suitable option for you.

Term Financing

At Merchant Growth, we offer term financing ranging from $5,000 to $800,000 to support a wide variety of small businesses, from restaurants and coffee shops, to construction contractors and hardware stores. The application process takes only a few minutes, and you can receive funding in as little as 24 hours. Unlike a traditional loan, our financing does not require collateral and offers flexible payment terms to meet your needs.

Business Line of Credit

Our business line of credit is a versatile financing option designed to give small businesses quick access to capital whenever they need it. With this revolving credit facility, you can borrow funds as required and only pay interest on the amount you withdraw. This helps business owners manage cash flow effectively and reduce dependency on credit cards. Our business line of credit features competitive interest rates and repayment terms that suit your business’s needs, providing the flexibility to borrow, repay, and borrow again as needed.

Small Business Funding Use Cases

Unlike small business grants, which typically come with strict guidelines around use of funds, our financing options can support various aspects of your business’s operations and growth.

Cash Flow Management: Quick access to capital can help manage daily operations when there are timing gaps between receivables and payables.

Business Expansion: Whether you’re opening a new location, growing your current space, or renovating your facilities, our financing can provide the capital needed to reach your expansion goals.

Purchasing Inventory: Get ready for busy season by keeping your inventory well-stocked. Our funds can help you make bulk purchases, capitalize on supplier discounts, or invest in seasonal merchandise.

Hiring Staff: Use our funds to cover recruitment costs, onboard new team members, and ensure sufficient staffing during peak times.

Marketing and Promotions: Our financing can support digital advertising, social media campaigns, local promotions, and more.

Handling Emergencies: Unforeseen expenses are stressful. Our funds provide a financial cushion and peace of mind for emergency repairs, equipment replacements, or other unexpected costs.

Merchant Growth offers you the flexibility to direct funds where they are most needed, allowing you to capitalize on growth opportunities and manage day to day operations with less stress.

In Conclusion: Small Business Funding

At Merchant Growth, our mission is to make small business financing simple. We service small businesses Canada-wide, with the below minimum eligibility requirements: