Small Business Loans And Grants In Alberta And Canada
Capital is vital to starting your small business and helping it thrive. Which route is best to raise money for your small business loans, grants or something else? In this blog, we share the different options available to you in Alberta and Canada.
Loans or debt financing involve borrowing money that you pay back with interest. There are a few programs that offer small businesses interest-free loans well cover some below.
Grants have specific criteria and require involved applications. Their advantage: you dont have to offer anything in return or pay back grant money.
If youre looking for small business loans or grants, you can do your own comprehensive searches both on the Government of Canadas Business Benefits Finder and on Albertas website. We have listed some options that we thought were most relevant, including COVID-19 small business loans and grants.
You can also pursue equity financing, which involves raising money from funds, family members or friends in exchange for partial ownership of the business or a share of the profits and losses.
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VIDEO: Dil at True North Accounting shows you how to find loans and grants for small businesses in Canada.
How Do I Apply For Pslf Forgiveness Is There A Deadline
The Department of Education has a dedicated tool to help guide your application for the limited waiver. The deadline to apply for the waiver is Oct. 31, 2022, but the sooner you apply, the better. Some borrowers may not have to take any action to have their loans canceled — but it’s a good idea to confirm your specific details.
If you hold FFEL or Perkins loans, you’ll need to consolidate them into Direct Loans. This process can take several weeks, and Lynch recommends completing the process “at least 45 days before filing the PSLF application.” That means you should take action to consolidate no later than the first week of September to ensure you have enough time to file.
Small Business Technology Transfer Program
The STTR program is similar to the SBIR but the emphasis is more on establishing public and private sector partnerships in research and development. This government grant for small businesses creates opportunities for small businesses to collaborate on joint ventures with the nations leading nonprofit organizations. The products produced are commercialized and some, or all, of the profits given to the small business. Like the SBIR program, any small business that receives the grant must complete three phases to receive the full grant award.
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Small Business Loan Guarantee Program
Helping small business with big ideas is precisely why the Small Business Loan Guarantee Program was created.It is the only financing program of its kind designed to empower small businesses in Nova Scotia to succeed.
The program is a joint initiative of the Nova Scotia Co-operative Council, Atlantic Central, local participating credit unions, and the Province of Nova Scotia. Together, we are delivering better financial assistance for the start-up and expansion of small businesses. The Small Business Loan Guarantee Program supports provincial business owners with creating and maintaining rewarding careers for Nova Scotians each year.
Each application is evaluated on a case-by-case basis and is based on your business plan, viability and character. Your character? Thats right. And it doesnt stop at the approval. The program is designed to empower Nova Scotia businesses to succeed with ongoing support, including access to a wide network of mentors for business coaching. That makes this program accessible and supportive for Nova Scotia small businesses.
Financing Details:
Loans may be granted for a term of up to of 10 years. The maximum guarantee supplied by the Province of Nova Scotia will be 90 percent of the value of all term loans. The guarantee will remain at 75 percent on lines of credit but a 90 percent guarantee may be available to those that qualify under our special financing streams.
Small Business Innovation Research Program
This government grant is awarded to businesses making strides in technology innovation. Funds are provided for research and development with additional support being given for the commercialization of the technology or service created.
The grant began in 1982 as a part of the Small Business Innovation Development Act and has provided funding for a variety of companies in the defense, environment and healthcare industries. Funds are obtained from the Federal Research and Development Project. Any small business that is awarded this grant must complete the three phases of the program to receive the full grant award.
- Phase I The budgetary allocation for this phase does not usually exceed $150,000. The Federal Research and Development team determines whether your project is truly viable.
- Phase II The results of Phase I determine the funding requirements for this phase. Funding usually does not exceed $1,000,000 and is dispersed over a two- year period.
- Phase III This is a non-funded phase where the product is commercialized. Other government agencies associated with the project may be the main consumers.
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List Of Government Loan Scheme For Business Startup In India 2020
Prime Minister Narendra Modi has mentioned on several occasions that central as well as state governments must offer more financial assistance to such youngsters who want to start their own businesses. In this regard, the central Ministry of Commerce and Industry launched a new scheme, named StartupIndia. Under this scheme, central authority offers credit to applicants at low rates. This money will help the applicants to start their business, and contribute towards the development of the nation.
The three most important loan schemes, offered by the central government are as follows:
CGS for Small and Micro Businesses The central government, with help from the SIDBI offers CGS or Credit Guarantee Fund Scheme. This credit scheme has been designed for people who want financial assistance for starting small or micro business ventures. Eligible applicants can get as much as 100 lakhs credit to set up their business.
Standup India scheme Another credit project that offers special loan for business owners is Standup India. The banks have been instructed by the central government to sanction a loan that ranges between Rs. 10 lakhs and Rs. 1 crore. Only female applicants and ST or SC candidates will be able to apply for this loan. The age of the applicant must not be less than 18 years. It has been highlighted that only non-defaulters will be able to apply and attain credit under this central government project.
List Of Loan Scheme For Startup
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Who Is Eligible For Pslf
To qualify for PSLF you must be employed full-time by a US federal, state, local or tribal government agency — this includes the military — or a nonprofit organization. You must have federal Direct Loans or other types of federally backed loans that have already been consolidated into Direct Loans and you must make 120 qualifying payments . Examples of borrowers who qualify for PSLF are workers like teachers, nurses and firefighters who serve their local communities.
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How Much Can I Borrow
- Minimum guarantee: $10,000
- Maximum guarantee: $100,000
- Guarantee level is 65% of a venture loan, principal only, and based on the net loss of the venture loan. For example, a loan guarantee for $65,000 would support a $100,000 loan.
- There is a one-time fee of 1.5% of the guarantee amount, payable when the guarantee is issued.
Get Funding Or More Help
Financial help and more resources are available for small businesses and entrepreneurs.
- Free legal advice for small businesses is available at Pro Bono Ontario.
- is the best resource for one-on-one help supporting your business.
- Apply for training, mentoring and a grant through Starter Company Plus.
- Business grants and financing are also available from the Government of Canada.
- Apply for a grant to adopt digital tools for your business.
- If you are starting or growing an innovation and technology company, programming and services are available through Regional Innovation Centres.
- If you are launching a side business, up to $15,000 in loan financing is available through Futurpreneur.
You can refer to a full list of all funding opportunities in Ontario.
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Alberta Export Expansion Program
The Alberta Export Expansion Program provides funding support to Alberta small and medium-sized enterprises , municipalities, industry associations, Indigenous communities and economic development organizations promoting Alberta exports through outbound international business travel or bringing international buyers to Alberta.
Assistance For Some Businesses In The Tourism Sector Section
Under the Assistance for Some Businesses in the Tourism Sector section of the PAUPME, tourist lodges with four or more rooms and travel agencies will benefit from the following conditions:
- Possibility of converting to loan forgiveness 40% of the amount reimbursed during the first 24 months following the start of repayment up to a maximum of $20,000 per establishment
- A 12-month moratorium on the repayment of principal and interest. The moratorium can be extended until March 31, 2022
- Possibility of amortizing loan reimbursement up to 60 months following the moratorium.
To be eligible, tourist accommodation businesses with four or more rooms must be registered on the Bonjour Québec website.
To be eligible, travel agencies must hold one of the following licences issued by Office de la protection du consommateur du Québec:
- General travel agents licence
- Restricted travel agents licence
- Restricted travel agents licence
Travel agencies are not required to be registered on the Bonjour Québec website.
Lastly, it is worth noting that businesses in the tourism sector can submit their applications in the context of this section until four weeks after the latest of the following dates:
- the lifting of the health emergency
- the full opening of the Canada-US border, which has already occurred.
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Due to the foregoing, the amortization schedule produced by the business loan calculator may differ from an actual payment schedule.
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.
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How Hard Is It To Get An Sba Small
SBA lending requirements tend to be less strict than a typical bank loan SBA loans are intended to help provide credit, backed by the federal government, to small businesses that otherwise might not be able to qualify for credit. However, in case you dont have a good enough credit score or meet other eligibility requirements for an SBA loan, you should consider applying for a business loan from an online lender.
How Can I Get A Business Loan With No Money
You dont always need money or collateral to get a first-time business loan, but you should hopefully have a track record of making money at your business, with positive cash flow and a viable business plan. Even if you have bad credit and less than a year of time in business, you might be able to qualify for a business loan or line of credit from an online lender.
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How Much Financing Can My Business Qualify For
For purchasing or improving equipment, or to purchase leasehold improvements, you can get up to $350,000. If you’re looking to purchase or improve real property, you can qualify for up to $1,000,000. Just keep in mind that funds are limited to the cost of eligible assets, and proof of purchase is required. To learn more, visit the Government of Canada site.
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State Trade Expansion Program
The STEP is a collection of government grants, and other support the Small Business Administration can offer assistance with obtaining or understanding STEP. This program focuses specifically on helping small businesses with export development. Grants are awarded to state entities. Small businesses can then apply to programs offered by these entities so that they can benefit from export development opportunities. Feel free to send an email to to better understand how your business can benefit.
Where Are They
Contrary to what you probably heard, you will find few grants for start-up companies. And it shouldnt come as a surprise.
Governments are risk adverse they are reluctant to give money to start-up businesses.Everyone knows that most businesses start and fail within a couple years.Most grants are for established businesses .Some grants do exist for start-up businesses, and we present them here for your convenience.
If you would like to learn more about how grants work for start ups, you can sign up for my Startup Grant Course.
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How Do I Apply
This program is delivered by participating financial institutions.
How To Qualify For Startup Business Loans
In general, lenders look at a startup owners personal and business credit scores when evaluating a loan application. Because startups generally have limited financial records and credit history, it can be more difficult to qualify for a business startup loan. In this case, the lender will rely primarilyor exclusivelyon the borrowers personal creditworthiness.
To qualify for a startup business loan, compile these documents before submitting an application:
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Why You Should Look To Government For A Loan First
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Whether you need some cash to get your business up and running, take on new markets, or start a project, chances are youll find the most affordable options from the government. There are lots of different types of loans in government, as well as loans from crown corporations, such as the Business Development Bank of Canada and Export Development Canada.
Is It Hard To Get A Small
If you are a young business, with less than 2 years of time in business and limited business credit history, it can be hard to qualify for a conventional business loan from a bank. However, you still have options, depending on your credit score and other factors. Even if you get turned down for a conventional business loan from a bank, you can still potentially apply for a SBA loan or get a first-time business loan from an online lender.
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How To Get Startup Business Loans And Grants In Ontario
The best business idea in the world is useless if you cant get it off the ground.
Thats what a lot of small business owners discover as they try to launch.
Its a lot easier to make money when you have money. Perhaps this is why over 30% of small businesses fail in the first two years.
But Canadian businesses can tap into startup business loans to help get them where they want to go.
Below, well take a look at loan options for Ontario based businesses.
Canadian Government Grant Loan And Funding Programs Mentor Works Can Write For Your Business
Canadian government funding programs can support small businesses, large corporations, non-profits and post-secondary research institutions. However, the key to accessing these programs is knowing which ones provide the best fit for your organization and upcoming projects.
Mentor Works team of Canadian government grant & loan application writers have an average success rate of 86% across all government funding programs and provide our clients with an average of 95% time savings. Speak with a member of our team to find out what programs your business may be eligible for by calling us at or visiting our Get Funding Help page.
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