Types Of Small Business Grants
There are several types of grants, and you may only be eligible for certain ones.
First, there are grants offered by the government. This includes entities like the U.S. Small Business Administration and more niche departments such as the National Institute of Health, which will have industry-specific requirements for applicants.
Then there are grants offered by private companies. These may be more general and open to a wider base.
Some grants target specific groups, like women or minority entrepreneurs or veterans.
Currently, we also have grants aimed to help those negatively impacted by the coronavirus pandemic.
Emergency Assistance For Small And Medium
Businesses subject to a closure order starting from December 20, 2021 to protect the health of the population in the context of the COVID-19 pandemic can again submit a financial assistance application under the Assistance for Businesses in Regions on Maximum Alert section of the Emergency Assistance Program for Small and Medium-Sized Businesses .
Applications for financial assistance under the AERAM section must be received not later than four weeks after the resumption of the operations of the businesses subject to a closure order.
Moreover, the moratorium on the repayment of principal and interest related to the financial assistance granted under the PAUPME can be extended until March 31, 2022.
The Emergency Assistance Program for Small and Medium-Sized Businesses seeks to support, for a period no greater than six months, the working capital of SMEs to enable them to maintain, consolidate or revive their activities.
The financial assistance addresses the need for the working capital required to maintain the operations of the business and is determined based on justified and reasonable expenses, as well as on a recovery plan showing good prospects of profitability in the medium term. The funding must offset cash-flow problems stemming from:
- the inability or significantly reduced capacity to deliver products or merchandise
- problems in obtaining raw materials or products
- slower resumption of the operations of the business due to the COVID-19 pandemic.
Business Grant Vs Business Loan: Whats The Difference
While both help you get money for your business, grants and business loans for small businesses are different beasts. The main difference between a grant and a loan is whether or not they require repayment. Loans require you to repay the money you borrow a grant does not. Grants can be awarded by government departments, trusts, or corporations and given to individuals, businesses, educational institutions, or non-profits.
Grants can be notoriously difficult to get, so if you apply for funding and are rejected, consider other financing, including business credit cards.
Here are other things to know about the differences between grants and loans.
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Regional Opportunities Investment Tax Credit
If your corporation is building, renovating or acquiring an eligible commercial or industrial building in a designated region in Ontario, you may be eligible to claim a tax credit of up to $90,000 in a year.
In the 2021 Budget, Ontario announced that it will temporarily enhance this tax credit by investing an additional $61 million, resulting in total tax credit support of about $155 million by 202223.
The tax credit will be available to claim on your corporate income tax return.
Good For: R& d Companies
The DoD offers grants to small businesses through the STTR program and a number of other initiatives, like the Defense Enterprise Science Initiative. The Office of Naval Research, the Air Force Office, and the U.S. Army Research Institute are all looking for research and development of technology that will help them reach their goals.
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How To Apply For A Small Business Grant
Work smart AND hard. Instead of filling out an individual grant application, do what every job applicant does and create a resume for your business that outlines your answers to the common questions business grant-givers ask of their applicants. While grants are technically free money, that doesnt mean they come without hard work on your part.
Some applications will vary based on whats required. For example, a local government grant will likely require an explanation of how your businesss growth and development will benefit local commerce directly, while a grant from a private company like FedEx may require a persuasive video.
Here are a few common details you may need to provide when applying for a business grant:
Resources For Small Businesses And Start
Resources are available throughout California for small businesses impacted by COVID-19.
U.S. Small Business Administration Guidance and Resources
The Paycheck Protection Program is now closed. If your business received a PPP loan, once your business is ready to pursue loan forgiveness, after funds have been expended, please review the Loan Forgiveness Application and consult with one of our centers, or your accountant, for assistance. Visit this webpage for loan forgiveness application instructions for borrowers, including instructions on what must be submitted to the lender directly.
U.S. SBA Economic Injury Disaster Loans : The U.S. SBA is accepting new Economic Injury Disaster Loan applications from all qualified small businesses, including agricultural businesses, and non-profit organizations. The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to COVID-19. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation to health care benefits, rent, utilities, and fixed debt payments. Read more HERE.
Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.
CA Infrastructure and Economic Development Bank Finance Programs
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Employer Health Tax Relief
We increased the Employer Health Tax exemption from $490,000 to $1 million starting in 2020.
Along with doubling the exemption, we doubled the instalment threshold from $600,000 to $1.2 million starting with the 2021 tax year.
What this means for you
As an employer, this means additional EHT relief of up to $9,945 per year, for a total of up to $19,500 in annual EHT savings per eligible employer.
The annual tax return form is not changing. Only the amount that you enter for the exemption claimed will change. Tax rates and eligibility criteria for the tax exemption remain the same.
In 2021, all employers will begin remitting monthly instalments when their annual payroll exceeds $1.2 million.
If your business no longer needs to make instalment payments or file an EHT return as a result of the increased exemption amount or instalment threshold, you do not need to notify the Ministry of Finance.
How To Find A Grant For A Small Business
A quick Google search will pull up millions of results for business grants. So many possibilities are out there that it can seem impossible to narrow down the prospects. But there are a few resources that can not only help you find the right grants for your business, but even assist in the application process, and help you identify grant opportunities that cant be missed.
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Free Grants And Grant Scams
If you receive information stating you qualify for a “free grant,” it’s probably a scam. Get information from the Federal Trade Commission so you can better recognize and avoid grant scams. If you have been a victim of a grant scam, you can file a complaint with the FTC.
Contact your state consumer protection office if you have purchased a book or paid a fee to get grant information and are not satisfied.
Enhancement For The Resumption Of Operations
To facilitate recovery, businesses that are eligible for the AERAM may obtain additional support under the PAUPME. A business can take advantage of new additional financial assistance of up to a maximum of $50 000 to cover its cash requirements, for total assistance of $150 000.
The additional support is equivalent to one, two, or three months of additional loan forgiveness in addition to for the preceding months, which can be claimed when the business targeted reopens.
For businesses closed for 90 days or less
A maximum additional amount payable is $15 000 per establishment. The additional support must cover the fixed expenses disbursed in the month following the reopening of the businesses targeted.
For businesses closed for between 91 and 180 days
The maximum additional amount payable corresponds to $30 000 per establishment, i.e., $15 000 per month. The additional support must cover the fixed expenses disbursed in the two months following the reopening of the businesses targeted.
For businesses closed for more than 180 days
The maxiumum additional amount that can be paid corresponds to $45 000 per establishment, or $15 000 per month. The additional support must cover the fixed expenses disbursed in the three month following the reopening of the businesses targeted.
The enhancement is added to the loan forgiveness for the preceding months, up to a maximum of 100% of the financing granted.
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Determine The Category Your Business Is Under
In Canada, your business can be in a grant-rich industry or an industry not funded by grants. Youll realize some industries blend well with Government objectives and may be eligible for funding.
Retail business grants are rare. However, you can find programs that support small businesses in North or Southern Ontario.
If youre arent sure where your business fits, you can visit the Government of Canada website under the find your industry sector. Understanding the industry your business is under, and its NAICS code can make your grants search easier. Do not forget to check out grants Canada to find out if your business qualifies.
Reopening And Operating Safely
Weve provided resources to help you understand the requirements and best practices for workplace safety. These actions can help you comply with the rules and keep operating safely.
Access the Workplace PPE Supplier Directory to find supplies for your business.
Questions about impacts to your business?
Call the Stop the Spread Business Information line at .
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Have A Solid Business Plan
Everyone who would consider giving you a business grant needs to see a comprehensive business plan. Your business plan needs to outline financial details like cash flow projections, a balance sheet, and an income statement.
If you dont have any knowledge on creating a business plan, no need to worry, you can get help from government-supported organizations and Canadian Business Centers Business plan software is beneficial. You can also go online and learn how to research and write each part of the business plan.
Small Business Development Centers
Once youve exhausted your searches for grants from federal agencies, the next stop on your list should be local and state business grants. You may be able to hit paydirt and find some of these on your own, but theres a free, local resource that may help.
Small Business Development Centers are a business owners best friend. Local, regional, state, and national offices mentor small business owners and help them understand business financing options, craft marketing strategies, and connect to other local business owners .
One thing they can help with is navigating the grant process. Very few people have as much visibility as SBDC advisors do on the local business grant scene. Its the one appointment you cant afford not to make when searching for small business grants.
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United States Department Of Agriculture
USDAs business programs provide financial backing and technical assistance to stimulate rural business creation and growth. Loans, loan guarantees and grants are available to individuals, businesses, cooperatives, farmers and ranchers, public bodies, non-profit corporations, Native American Tribes and private companies in rural communities. For more information, please visit the USDA website.
Small Business Grants In Canada
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Are you a Canadian looking to grow your business? Heres everything you need to know about small business grants in Canada and what you need to qualify.
Starting a new business is exciting. However, the major challenge small businesses face is the lack of finances to fund their operations. You need money to carry out various activities and scale your business to the next level.
Small business grants can come in handy. In Canada, you may realize its challenging to find a grant. Although there are grants available, most of them are for specific groups of people participating in some things and certain places. Government grants round up in some industries like biotechnology, agribusiness, environmental technology and more.
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An Alternative: Quick Business Loans From Lendingkart
While all these schemes display the commitment of the past and present Indian governments to develop the nations economy, there is much that needs to be done to make the schemes effective. For example, the refinancing and subsidy model used by the government takes away the quick factor from unsecured business loans touted by the schemes.
Since these loans are essentially funded by government-sponsored banks, the turnaround time is in weeks or even months, which is detrimental for a small business owner looking for quick business finance. Even the most ambitious of all these schemes, the 59 Minutes Loan for MSMEs, takes up to 2 weeks in reality.
On the other hand, MSME finance by non-banking financial companies like Lendingkart is approved and disbursed within 72 hours. This is done by combining business analytics and online technologies for loan approval and disbursal instead of relying on paperwork and age-old processing techniques. For instance, Lendingkart offers business loans online through its website or mobile app.
Simply log in to apply for a business loan, get a same-day approval, accept the quote and upload your documents digitally for verification. The entire process hardly takes 10-minutes of your time and the verification is completed within 3 working days by Lendingkart. So, you have the funds ready for use within a quarter of the time it takes a government scheme to disburse a loan.
Federal Government Tax Credits
Many tax credits provided by the federal government help Ontario businesses defray the cost of hiring and research & development.
Heres a sample a federal tax credits for Ontario businesses:
- For businesses that use apprentices, the Apprenticeship Job Creation Tax Credit gives the business a tax credit when apprentices meet certain criteria while employed in an apprenticeship program.
Provincial government loans support a wide range of activities, including capital investment, green/clean tech, and more.
Heres a small sample of the business loans offered by the Ontario provincial government:
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No Federal Grants For Businesses
The federal government does not offer grants for starting or growing a business. It only provides grants for nonprofit and educational institutions. These organizations focus mainly on medicine, technology development, and other related fields. Find out more about federal grants.
Some state and local programs offer business grants. They usually require you to match the funds. Or, they may expect you to combine the grant with other forms of financing, such as a loan.
What Is A Small Business Loan
A small business loan is a source of funding business owners can access to cover the costs associated with operation and growth. Like personal loans, business owners can get small business loans through traditional banks and credit unions as well as online lendersincluding those backed by the U.S. Small Business Administration . Depending on the type of loan, you can use funds for everything from working capital and equipment acquisition to larger purchases like real estate.
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State Of California Support
The Governors Office of Business and Economic Development has compiled helpful information for employers, employees, and all Californians as it relates to the Coronavirus pandemic. For a complete list of resources, please click the button below:
State Reopening Guidance
California has reopened its economy as of June 15, 2021, following the Beyond the Blueprint framework. Beginning June 15, all sectors listed in the current Blueprint Activities and Business Tiers Chart may begin to return to usual operations , based on the general public health recommendations and as established by each County. Please check with the County of San Diego Health and Human Services department, as rules are evolving. Employers are subject to the Cal/OSHA COVID-19 Prevention Emergency Temporary Standards , if applicable. Businesses can also review guidance for safely reopening by clicking the button below:
State Grant and Loan Programs
The state also frequently updates a webpage with economic resources for California business. To visit that page, please click the button below:
Capital Program Highlights
State Resilience and Recovery Programs
Additional Resources: State Offices
