Canadians preparing for another year of change to new circumstances can look to the following top government funding programs for winter 2022. They can also take note of current tax incentives that could benefit their business.

Top government funding programs for winter 2022

Agricultural Clean Technology (ACT) Program – Research and Innovation Stream

The Agricultural Clean Technology (ACT) Program – Research and Innovation Stream supports research, development, and adoption of cleantech. These improvements are made possible by innovations in precision agriculture and agri-based bioproducts. Technologies must reduce greenhouse gas emissions and promote sustainable growth to be eligible.

• Amount: Successful applicants can get up to 50-75% of eligible expenses to a maximum of $2M per project or $5M per applicant with multiple projects.
• Eligibility: Applicants can be provincial/territorial governments in Canada, for-profit agri-businesses, and not-for-profit agri-organizations to be eligible.

Canada Summer Jobs (CSJ)

The Canada Summer Jobs (CSJ) program is dedicated to helping employers offer youth employees supervised, career-related, work experience. With the CSJ, it is a requirement that the work experience gained through the summer placement further develops the skills and knowledge for employees and prepares them for real-world work.

• Amount: Successful applicants can get up to 50% of minimum hourly rates for employees. Some non-profits can receive up to 100% of minimum wage. Funding through CSJ is capped at $300K per employer/province or territory.
• Eligibility: For-profit SMEs, non-profits, and public sector organizations are eligible if they have less than 50 employees. Placements for youth employees should be full-time (30-40 hours/week) and last between 6-16 weeks.

Canadian Food Innovation Network (CFIN) – Booster stream

The Canadian Food Innovation Network’s (CFIN) program helps food and beverage organizations in Canada that bring innovation to the food industry. This stream funds the research and development for tech readiness level initiatives one-seven. CFIN’s intent is to make Canada a food and beverage leader in the world.

• Amount: Applicants can get up to 50% of costs for projects ranging from $20K-200K. Costs incurred prior to approval will not be eligible. All approved projects are subject to a 5% fee (by CFIN) according to total costs.
• Eligibility: Must be incorporated for more than one year, have fewer than 500 full-time equivalent (FTE) employees, and have less than $50M in taxed revenues per year. Lastly, successful applicants must be CFIN members upon approval.

Innovative Solutions Canada (ISC)

ISC offers grants and procurement contracts to stoke innovations in technology research and development for commercialization in Canada. ISC supports startups and SMEs to surpass technology development obstacles in producing globally-demanded products and services, while also improving government operations.

• Amount: Phase 1: Grants up to $150K; Phase 2: Grants up to $1M; Phase 3: Government procurement contracts with no fixed maximum.
• Eligibility: For-profit, privately held Canadian businesses with fewer than 499 FTE employees.

Top government loan programs for winter 2020

Business Scale-up and Productivity Program (BSP) Southern Ontario

The BSP Program helps Canadian organizations adapt technologies to improve their productivity. Funding stimulates early adoption or adaptation of innovative tech and processes, commercializing/producing new products or processes, expanding management capacity, and researching/developing export markets.

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• Amount: This is a contribution (no-interest loan) that is repayable and offers up to 35% of eligible expenses to a max of $10M. Minimum ask of $500K allowed.
• Eligibility: Southern Ontario SMEs that are incorporated and have been profitable for more than three years. Must have a minimum of five employees. Pre-revenue companies and those with fewer than five employees require proof of scale-up potential.

Canadian Agricultural Partnership (CAP)

The Canadian Agricultural Partnership (CAP) is contributed by the federal, provincial, and territorial governments across Canada. This program provides funding for agri-food industry businesses and is the pillar organization responsible for repayable grant funding contributions to SMEs, non-profits, and other major industry stakeholders.

• Amount: The CAP Program offers various streams of federal and provincial funding opportunities ranging from grants and loans for a maximum of up to $10M.
• Eligibility: Eligibility varies from stream to stream. Base eligibility includes Canadian businesses, incorporated and profitable for three or more years. Must have five or more employees.

Strategic Innovation Fund (SIF)

The Strategic Innovation Fund (SIF) is a government funding program at the federal level that supports Canada’s technology and industrial sectors. SIF offers financial grants and loans of up to 50% of a project’s costs with the intent of promoting venture into the types of activities that drive continuous productivity and economic advantages.

• Amount: Minimum funding contribution of $10M per project. Type of financial support awarded is at the discretion of the program; this can consist of a combination of repayable financial support and/or financial reimbursements up to 50% of project costs.
• Eligibility: Incorporated Canadian businesses with high growth potential and the ability to drive innovation.

Southwestern/Eastern Ontario Development Fund (SWODF/EODF)

The Southwestern Ontario Development Fund (SWODF) and the Eastern Ontario Development Fund (EODF) programs encourage businesses to invest in facilities and equipment that can create innovation for the industry. The programs attract SME and large-scale projects that provide a substantial impact on business productivity and create new employment openings within a company. Successful applicants receive grants or a combination of grants and repayable loans to offset project costs.

• Amount: Successful applicants can get up to 15% of project expenses to a maximum of $500K -$5M.
• Eligibility: Applicants must be at least three years incorporated, have more than 10 full-time employees (five FTE in rural communities), commit to creating at least five new jobs, and be located in southwestern/eastern Ontario.

Learn More About Grants and Loans for Your Business

The programs above are intended for small to medium-sized businesses that have been incorporated for at least three years, generate at least $500K in annual revenue, and have 15 or more employees.  If you do not meet these qualifications, please visit Mentorworks source for Canadian Startup Business Resources.

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Government grants and loans may also create additional cashflows and support for important initiatives, which lead to expanded projects being completed faster and more efficiently. Additionally, government funding support strengthens Canadian competitiveness and helps businesses become leaders on the global stage.

That’s why SMEs and entrepreneurs need to learn how to optimize their funding applications and integrate government funding into their strategic business plans. By doing so, they not only give their business extra support but allow the larger Canadian business ecosystem to thrive on an international scale. To help you better understand the benefits of government funding and proper application techniques, read our tips below:

How to use Canadian government grants and loans

1. Canadian government funding fuels directives which may be unable to proceed without further financial help;
2. Government funding supports business expansion and growth; and
3. Grants and loans from the government improve project outcomes.

Annually, businesses from every industry are awarded Canadian government funding to finish projects and improve them. Funding success stories demonstrate how other businesses may benefit from funding support from the government.

How to apply:

The Application Process for Canadian Government Funding

Accessing government grants and loans can be exciting and rewarding for small and medium-sized enterprises (SMEs) to undertake if they use the right resources and strategies.

“The application process is not easy, but it can be simplified by planning ahead and linking strategic goals to the right small business grants and loans programs offered through provincial and federal governments.”—Bernadeen McLeod, President of Mentor Works

To be successful, your business must understand the Canadian government funding landscape and be proactive in establishing a strategy for strategic projects and accompanying budgets. Here are four critical stages to starting:

Step 1: Build a strategic analysis for your needs and goals

Since government grant and loan programs are project-specific, it’s important to start by implementing both critical and nice-to-have projects that will directly support your company’s growth, as well as improve your competitive advantage.

Suggestion: Brainstorm with your team what may be improved. Consider these questions to start:

• Would hiring any co-op students or recent graduates be beneficial?
• Could innovative, updated technology help improve operations and systems?
• Do you have opportunities for business expansion? Would a detailed market analysis help you grow and expand overseas?
• Do you have room for research and development projects? Would these contribute to improving your products and/or services?

Step 2: Choose grants and loans that suit your business analysis

Choosing suitable government grant and loan programs is difficult for two main reasons:

1. There are many unique programs, all with their individual focuses, required criteria, processes for applications, and availability.
2. For SMEs, it’s very difficult to allocate internal resources to remain ahead of program releases and updates.

However, consulting firms such as Mentor Works offer an online database to Canadian government funding programs to assist with the dissemination of the variety of funding options.

Step 3: Use experts to apply with confidence and knowledge

After outlining funding programs that match your needs, you may choose one of the following options:

• Opt for professional grant writing services
• Attempt an application process internally.

Unfortunately, businesses that attempt funding applications on in-house often miss deadlines as they often underestimate the time it takes to create a compelling narrative for an application that speaks to both a program’s goals and the organizations’ vision and objectives.

Step 4: Enjoy the rewards of a successful government funding application

Aside from the excitement of achieving an application win, the application process requires being proactive and diligent. So, when a company receives between 15 to 75% of project expenses from government sources, there is more accountability for completing the project.

Frequently asked questions about Canadian government funding 

1. Does my business qualify for Canadian government grants and loans?

For most government programs, businesses should be incorporated for a minimum of three years and have at least 15 people on payroll, while keeping a positive net income. However, there are exceptions, such as COVID-19 relief and recovery funding programs, and more.

Please consult the Mentor Works Canadian Business Funding Guide for information regarding application criteria.

2. What programs are best for my business?

The first stage of Canadian government funding, as mentioned earlier, is to determine your goals. After this, external support services, like Mentor Works’s turnkey funding guidance, help this process with a customized list of programs that offer unique funding for specific projects. Browse our Government Funding Directory to find opportunities for your industry.

3. What rate of approval can I expect for government funding applications?

Approval success rates depend on each specific program and whether you’re able to fit the program design, such as eligible projects and expenses.

Even if your application covers all program criteria, there is never a guarantee that your application will be successful. However, the four aforementioned stages can help your business maximize success rates.

Access this full list of Canadian Government Funding FAQs to answer outstanding questions you may have, and always remember that there are many options for business funding support in Canada.

The post Why government funding is critical for Canadian businesses and how to plan for funding success appeared first on Trade Ready.