Sunday, September 18, 2022

Government Support For Small Business

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How Is The Loan Administered

Local Small Businesses Waiting Government Help

The PPP portion of the CARES Act made significant changes to an existing Small Business Administration loan program. The PPP is largely administered through private banks and credit unions previously approved by the SBA, but other lenders have also been enrolled.

As of March 28, 8.7 million PPP loans had been issued, totaling $734 billion, and with an average loan size of about $84,000. Those loans were made to various sectors, with businesses in construction healthcare and professional, scientific, and technical services among those receiving the most funds.

Research suggests that design issues with the program may have limited its reach and effectiveness, especially for businesses that were most affected by the COVID-19 pandemic. Nevertheless, the PPP has helped millions of businesses stay afloat during the pandemic. The latest COVID-19 legislation, as well as executive actions taken by the Biden Administration, further increased access to the program by expanding eligibility and removing certain restrictions.

Product Development And Small Business Incubator Fund

The Product Development and Small Business Incubator Fund is a program offering long-term, asset-backed loans to product development companies, specifically in manufacturing. The primary objective of the program is to aid in the development, production and commercialization of new or improved products in the state.

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.

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Youre Our First Priorityevery Time

We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.

No Federal Grants For Businesses

Five Facts About Government Aid to Small 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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Lowering The Cost Of Doing Business By Reducing Credit Card Transaction Fees

The pandemic has brought about a rapid and significant increase in electronic payments and online transactions. Small- and medium-sized businesses, which have been hard hit by COVID-19, incur fees for these transactions, also known as interchange fees, which are amongst the highest in the world.

The government will engage with key stakeholders to work towards three objectives:

  • Lower the average overall cost of interchange fees for merchants.
  • Ensure that small businesses benefit from pricing that is similar to large businesses.
  • Protect existing rewards points of consumers.

Following consultations with stakeholders, detailed next steps will be outlined as part of the 2021 Fall Economic Statement, including legislative amendments to the Payment Card Networks Act that would provide authority to regulate interchange fees, if necessary.

Natural Resource Sales Assistance Program

In addition to the billions of dollars spent purchasing goods and services, the federal government also sells large amounts of natural resources and surplus property. The SBA Natural Resource Sales Assistance Program sets aside a percentage of these goods for bidding by small businesses only. In addition, federal agencies sometimes divide surplus materials into smaller parcels, making it easier for small businesses to purchase. The five categories are:

  • Timber and related forest products.
  • Strategic materials.
  • Leases involving rights to minerals, coil, oil and gas.
  • Surplus real and personal property.

The program also provides training for small businesses on government sales and leasing.

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Federal Government Support For Small Business

Originally published on March 27, 2020.

The following is archived material. Please refer to the federal government for more information.

The governments measures for business are clearly still taking shape and more detail is expected in the days to come. Nonetheless, the government has outlined in broad strokes how it intends to approach the task of helping large enterprises as well as SMEs.

Were reviewed the federal support programs and have provided a summary below.

Good For: Technology Companies

Kim Pham on how the government can help small businesses:

The federal research SBIR grant program is for entrepreneurs focused on innovations in technology that have the potential for commercialization. You can check its funding opportunities here. Focus areas from the past include clean and safe water, homeland security, land revitalization, green construction, advancement of health care, and more.

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Will There Also Be Federal Government Support

At this point, there has been no announcement around federal government support which is fuelling some controversy. Premier Dominic Perrotet requested that the Commonwealth split the cost of the package, but this request was refused.

I was hoping to make this announcement standing beside the Prime Minister today and the Treasurer Frydenberg, but theyre not to be found, said Mr Kean.

These are not just New South Wales businesses, theyre Australian businesses, Australians that pay their taxes to the Commonwealth government. So what we want to see is rather than the Commonwealth government stepping aside we want to see the Commonwealth government stepping in.

What Is A Small Business Grant

A small business grant is essentially free money given to a small business owner to help them launch, develop or expand their organization. Grants, unlike a loan, do not have to be paid back, but they often come with restrictions on how the money can be spent.

Just because a grant is free money, doesnt mean it is easy to get. It takes a lot of time and preparation to apply for a grant, and they are highly competitive, so small businesses should only apply for grants they are eligible for.

Entrepreneurs and small business owners can seek a variety of grants, like private grants from corporations and government grants from federal, state, and local governments. Grants are also available for specific industries and demographics for example, if you are a minority business owner, there are several minority-owned business grants specifically geared toward you.

Key takeaway: Small business grants are free money given to small businesses by private corporations or federal, state, or local government.

Editors note: Looking for the right loan for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

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Helping Nys Businesses Build Back

Were here to help New York States small businesses reimagine, rebuild and renew. Find out more about our Business Pandemic Recovery Initiative programsincluding $800 million in state funding for small businesses. And find a statewide network of centers staffed by people who can walk you through how to apply. See below for details.

Government Sources For Small Business Grants

Government support for small businesses if affected by the COVID

There are a wide variety of grants from the government from both the federal and state level.

Grants.gov: The first place all small businesses should go to look for a federal grant. Its a database of thousands of grants with powerful filters that will help you quickly narrow down the results to grants that you have a good chance of getting.

Small Business Administration Grants: The SBA mainly helps small businesses find conventional means of funding .

But they also have a few grant programs, targeted specifically at businesses involved with research or exporting.

Here are the primary grants they sponsor:

  • Small Business Innovation Research : The SBIR is a longstanding funding program for research-based businesses with commercialization potential. They award grants through 12 main federal agencies:
  • Department of Agriculture
  • Department of Health and Human Services
  • National Science Foundation.
  • State Trade Expansion Program : This program awards grants to small businesses involved in exporting. Not too much information about this grant is available online, youll need to contact the SBAs Office of International Trade to see if you qualify.
  • SAM.gov Grants : This is another great federal grant database with a modern re-design. While there is some overlap with Grants.gov, youll find a few unique ones as well that makes it worth your time to check. You can use the advanced search filters to only see grant results, or also see other funding sources like loans.

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    Canada Community Revitalization Fund

    Main streets, farmers’ markets, and other gathering places underpin local economies. In many communities, the most vibrant spaces in our communities have laid dormant as Canadians took precautions to stay safe. Recognizing that economic recovery is tightly linked to the vitality of our local communities:

    • Budget 2021 proposes to provide $500 million over two years, starting in 2021-22, to the regional development agencies for community infrastructure. These projects will stimulate local economies, create jobs, and improve the quality of life for Canadians from coast to coast to coast.

    Helping Businesses Keep Their Workers

    To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.

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    Quick Tips For Getting More Grants

    There are a lot of simple things you can do to improve your chances of winning grants. Most are easy to understand, but you need to make sure you keep them in mind.

    Heres how to get more grants:

    • Always look for new grant opportunities .
    • Make sure the time spent to apply for a grant is actually worth the grant amount.
    • Read over the individual application instructions to each grant. Some are similar, but few are the exact same.
    • Double-check that you are eligible before spending a lot of time on an application.
    • Provide specific numbers on how the grant will be used and how it will help.
    • Double-check your spelling and grammar.
    • Submitting your application early may make you look more prepared than late-submitters.
    • Back up claims with credible citations.
    • Be realistic when mentioning your business costs or revenue.
    • Find a book from your library on grant writing if you want to write better grant proposals.

    Mortgage Default Management Tools

    Small Businesses Can Now Start Applying For Federal Government Help

    The Canada Mortgage and Housing Corporation and other mortgage insurers offer tools to lenders that can assist homeowners who may be experiencing financial difficulty. These include payment deferral, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements.

    The Government, through CMHC, is providing increased flexibility for homeowners facing financial difficulties to defer mortgage payments on homeowner CMHC-insured mortgage loans. CMHC will permit lenders to allow payment deferral beginning immediately.

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    Operating Losses And Business Interest

    As part of the Tax Cuts and Jobs Act, businesses with net operating losses are able to deduct losses of up to 80 percent of their operating income. Any losses in excess of that amount could be carried forward to reduce taxable income in future years. The CARES Act increased that allowance to 100 percent of taxable income and permits businesses to carry those losses backward as well as forward. In effect, some businesses will be eligible for tax refunds for previous years. In addition, any excess losses can be applied to the non-business income of business owners. Finally, the act temporarily increased the amount of interest expenses that businesses may deduct. CRFB estimates that the net cost of those modifications will be $206 billion.

    Don’t Forget To Form Your New Business

    Once you’ve decided to set up a new company, the most important next step is to form your business.Most small businesses set up as an LLC .

    This keeps all your assets separate from the company, limiting your personal liability, while giving the pass-through tax benefits of being a sole proprietor.

    The process of forming your company can be really simple. Incfile can handle everything for you for $0 – all you pay is any state fees. Form your company for $0 now at Incfile.

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    Supporting Your Team Through Omicron

    Its ok to acknowledge that 2022 is so far not the easy ride we had all hoped it would be. We hope that if your business is struggling, these newly announced supports can help.

    Whatever challenges your business is facing, we have plenty of tips to help you support your team through this strange time. Find more information about your team and Omicron, or check out our guide to helping your team tackle pandemic fatigue.

    As always, our Covid-19 Resource Hub is always here for you with helpful tools and information, so that we can get through this latest round of challenges together.

    Disclaimer:While due care has been taken in preparing the document, no responsibility is accepted by the author for the accuracy or suitability of the information contained. All liability is expressly disclaimed for any loss or damage which may arise from any person relying on, using or acting on any information contained therein.

    Support For Communication Methods

    What support is available for my small business?

    You’ll want the unified communication solution you choose to support the communication methods you use the most often. For example, you might primarily use the telephone and email. While others might do most of their work-related communication via team messaging. Choose a solution that integrates your preferred communication methods together, and offers you the ability to scale up service offerings in the future.

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    Role Of Financial Institutions

    The Minister of Finance is in regular contact with the heads of Canadas large banks, and continues to encourage them to show flexibility in helping their customers whose personal or business finances are affected by COVID-19. The Superintendent of Financial Institutions has also made clear his expectation that banks will use the additional lending capacity provided by recent government actions to support Canadian businesses and households.

    In response, banks in Canada have affirmed their commitment to working with customers to provide flexible solutions, on a case-by-case basis, for managing through hardships caused by recent developments. This may include situations such as pay disruption, childcare disruption, or illness. Canadas large banks have confirmed that this support will include up to a 6-month payment deferral for mortgages, and the opportunity for relief on other credit products. These targeted measures respond to immediate challenges being faced across the country and will help stabilize the Canadian economy.

    Economic Injury Disaster Loans And Emergency Economic Injury Advance Grants

    The Economic Injury Disaster Loans are small, lower interest loans with options for principal and interest deferment. Small businesses that apply for such loans were also eligible for Emergency Economic Injury Advance Grants, which were advances of up to $10,000 that do not need to be repaid. While those initial grants have been fully disbursed as of July 2020, businesses in low-income communities that previously received or applied for EIDL Advance Grants are eligible for an additional $10,000 through Targeted EIDL Advance Grants. Those loans and grants can be used for operating expenses such as payroll costs, pay for sick leave, and debt-service costs.

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    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.

    Small Business Lending Fund

    Rolling back government financial support ‘completely untenable’ for small business

    The Small Business Lending Fund provided capital to qualified community banks and community development loan funds to encourage these institutions and Main Street businesses to work together to promote economic growth and create new jobs. Through the SBLF program, Treasury invested over $4.0 billion in 332 institutions, structured to incentivize increased small business lending.

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    What Is The Limit On The Number Of Grants I Can Apply For

    There are rarely any limits on the number of grants you can apply for. However, you can only apply to each grant once per business you run.

    Sometimes, a program offers multiple grants per year. Most of them allow businesses to submit applications multiple times, but a few do not. Check the grant details to find out.

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