Originally written in appropriate HTML tagging, this article serves as a brief explanation of Canadian government small business funding requirements.

Typical Small Business Government Funding Requirements

Knowing what to expect can prepare you for finding suitable small business government funding

All government grant and loan programs vary for a variety of reasons. However, there are some general points of overlap and intersection. These points are typical of what loan or grant funding programs require of applicants.

Be a Particular Type of Business

Several grants target specific business types or industries because the funding sources are government agencies related to such a cause. For example, the Ministry of Natural Resources may offer business financing to help small mining or forestry businesses. They do so because it falls within their oversight role.

Small Business Job Creation

It is not uncommon for financial assistance programs to require applicants to create one or more positions within their company using the provided government money. Some government funding options require the business take on a student to receive the funding. (Or the program subsidizes the student’s wages.) Other funds demand that the money be directly used for job creation.

There are also some tax benefit programs that only come into effect for employees. For example, some programs repay small business employers some of their Employment Insurance deductions.

Attend Mentoring Sessions and other Forms of Training/Education

The government likes to feel it is financing entrepreneurs with good, viable ideas who know what they are doing. As such, some government funding is contingent on applicants attending small-business skill-building workshops. Other financial assistance programs require the recipient partner with or obtain an approved mentor.

Provide Your Own Investment

The government acknowledges there are benefits of helping small business owners under the right circumstances. However, business funding programs are rarely able (or willing) to shoulder all financial risks. Government funding programs that require a financial stake from the applicant filter out entrepreneurs without the will or means to contribute to their success.

Financial requirements include dollar matching (i.e., you must provide as much money as the government-provided funds) or a minimum annual reinvestment.

Fit a Specified Objective Type for Government Funding

Government funding for small businesses often limits assistance to applicants in pursuit of specific goals. Relevant goals can include benefiting a particular demographic group. Such demographics can include youths, women, and First Nations. Alternatively, goals could be specific business improvements, such as green energy and technology projects.

Knowing how to spot funding requirements — a process that may sometimes mean reading between the lines and not merely reading the eligibility conditions — may help you find programs suited to your needs.