subject: Are There Government Grants And Loans For Canadian Businesses? [print this page] I am often asked by customers if there are grants and loans available for their business in Canada. On many occasions these firms are either a start up or pre-revenue. There is a general belief that there is 'free money' out there, and people are trying to find it! I categorically believe there is no free money available - if that was the case can you just imagine?!
However, there are some excellent programs, two in particular, that in our opinion are the two best government programs for Canadian business in the SMALL MEDIUM ENTERPRISE ' SME' sector.
The Canadian government has allocated hundreds of millions of dollars into what is known as the CSBF Loan program. The government provides a lot of data at its website around the availability of the program, how it works, and who is eligible.
While some of the information might seem overwhelming there is a lot of assistance available. For the purposes of this article we will share that the program is available to all new or established firms with revenues under five Million dollars. We note also that the program does not apply to publicly listed companies.
Most people that are familiar with the program might not know that in the current 2009 world economic crisis the government increased the amount of these loans to $ 350,000.00 and in some cases $ 500,000.00.
How can you qualify for the program, and, more importantly, do you qualify?
Customers need to review the classes of assets that can be financed. The true 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 is not required!
Typically these programs are used by companies to acquire assets, improve their business, purchase or develop software, and even in some cases buy real estate.
Do Canadian business owners know that the government can assist them in purchasing business real estate with limited guarantees and great rates and terms? We don't think so!
If business principals feel they are adequately prepared to source out this programs financing power we strongly recommend that they begin this process. However, not everyone has the time, financial skills or accumen, and the ability or comfort level to complete this financing.
Those people should 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, research or innovation that your firm has developed? If so you want to maximize your participation in the governments SR ED tax credit program. We will talk more about this program in an upcoming article.
