"I have this great idea for a coffee shop in downtown Victoria and would like to know where I apply for the government grant?”
Believe it or not I get this question at least once a day at Business Victoria. I can't tell sometimes if these individuals just happen to be walking by the office and have a moment of inspiration to be entrepreneurs if or if they have worked diligently on a business plan for a couple of years and believe they can be the next coffee mogul to strike in rich in the multi billion dollar a year java business.
Either way most people have a look of disbelief on their faces when I tell them there is no application form for government grants for starting a business. "But I have a friend who knows someone that got a grant to start their business" is the quick response with a look of distrust, as if I have a drawer full of free money that I am keeping from them. That maybe there is a conspiracy perpetrated by individuals such as myself to keep the “Grant” money to ourselves. If we knew where the key to the free government cash drawer was being held, believe me I would not be sitting at my desk telling other people how to access it.
Now how can this be? We are reading all the time about how the Government is giving away money to big business. Well for the most part these would be tax credits, such as giving a P.S.T. exemption on capital expenses for re-tooling a manufacturing plant to keep hundreds of people employed, or waiving the G.S.T. and/or duties on equipment used for manufacturing that can not be purchased in Canada.
Send us Money and we will show you where the hidden grants are.
Buyers beware. About every three months I start to receive a series of phone calls from individuals who have been contacted by one or more companies selling books that show where to apply for grants. These books cost from between $150.00 and $400.00 and often have websites that look like they are part of the Canadian Government, usually with the name “Canadian” in them. These are private companies that compile lists of Government Grants and sell them to the public. Most government grants can be accessed for free through the internet, and the majority would only be available to not-for profit societies. Read the literature carefully and see if there are any businesses that are simular to yours that have benefited from Government Grants. Receiving a subsidy from the City Hall to help fray the cost of painting your heritage building is considered a grant and so are many other forms of subsidies and tax incentives. I have put together a sample of some of the financing programs available to small business, this is not an entire list, but should get your going on the path to financing your dreams.
Financing Options:
The Provincial Government, the Federal Government and private foundations do offer loans to individuals wishing to start a business. Go to http://www.smallbusinessbc.ca/ and look for “The Overview of Government Financing”
The Canada Youth Business Foundation offers no-collateral loans of up to $15,000 for “Youth” between the ages of 15 and 35 (yes 35 is considered a youth, so 40 really is the new 20)
The Women’s Enterprise Centre offers loans of up to $100,000, however equity and security of about 30% of the loan amount is required
Yes there are non-repayable contributions (government grants) for business owners and people wishing to start a business, however the two most common forms of non repayable contributions are tied to Employment Insurance.
Wage Subsidy:
This program essentially will provide a subsidy to companies that have been in business for more than one year who hire individuals that have an active E.I claim or have had an active E.I. claim in the past three years. In Victoria contact Worksource.
Self Employment Program
This program is funded through Service Canada will allow individuals who are on E.I. or have been in last three years and cannot find work an opportunity to become self employed. This really is a grant as individuals can receive up to 52 weeks of funding to while in the start up phase of business with having earnings of the business clawed back.
First Nations
ABC
Aboriginal Business Canada:
This federal agency offers non repayable loans to First Nations, Métis, and other individuals of aboriginal ancestry.
So if your are looking for the “Free Money” and you find it please let me know, because I have this great idea I have been working on and just need someone else to finance it and assume all the risk.
