Government Grants

I am frequently asked by clients if you will find grants and loans accessible for their business in Canada. On numerous occasions these firms are either a start up or pre-revenue. There’s a general belief that there is small business grants out there, and individuals are trying to discover it! I categorically believe there is no free money accessible – if that was the case can you just imagine?! Nevertheless, there are some excellent programs, two in specific, that in our opinion are the two best government programs for Canadian business within the Little MEDIUM ENTERPRISE ‘ SME’ sector.

The Canadian government has allocated hundreds of millions of dollars into what’s known as the CSBF Loan program. The government provides a great deal of data at its web site around the availability of the program, how it works, and who’s eligible.

While a few of the information might seem overwhelming there is a lot of help accessible. For the purposes of this article we will share that the program is accessible to all new or established firms with revenues fewer than five Million dollars. We note also that the program does not apply to publicly listed businesses.

Most people which are familiar with the program may not know that within the present 2009 globe economic crisis the government increased the quantity of these loans to $ 350,000.00 and in some cases $ 500,000.00.How can you qualify for the program, and, much more importantly, do you qualify? Clients need to review the classes of assets that can be financed. The accurate power of the program is that the rates are only 3% over prime, currently in the 5% range. Terms of repayment are 5-10 years, and, are you ready; a full personal guarantee of payment isn’t required!

Typically these programs are utilized by companies to acquire assets, enhance their company, purchase or create software program, as well as in some cases buy real estate.

Do Canadian business owners know that the government can assist them in buying company actual estate with limited guarantees and great rates and terms? We do not believe so! If business principals feel they’re adequately prepared to source out this programs financing power we strongly recommend that they begin this procedure. However, not everyone has the time, monetary skills or acumen, and also the capability or comfort level to total this financing.

Those individuals ought to seek out the aid of a trusted advisor and business financing expert in order to maximize their participation in the program. Let’s get back to free money! Does it exist? Again, not really. But would you like to receive a check from the government for any processes, study or innovation that your firm has developed? If so you want to maximize your participation within the governments SR ED tax credit program. We will talk more about this program in an upcoming write-up.

 

 

 

Posted in government business grants