Small businesses all over the world have been through a turbulent time; Covid, labor shortages, supply chain disruption, and economic uncertainty have led to hardships. Small businesses in Canada are in luck though, as government and private assistance provide opportunities for grants and financial relief.
If a small business is looking for financial help, the first stop is the easily accessible Canada Business Benefits Finder. Fill in information about a business, location, company size, project, and funding available will pop up. The grant listings will direct you to the correct website to determine eligibility and apply. This support is needed, as small businesses contributed 37.5% to gross domestic product generated by the private sector in 2018.
Currently, there are several grants for businesses that have endured Covid-related hardships. For example, there is a work-sharing agreement that allows employees of a company affected by Covid to work a temporarily reduced work week and get EI benefits. Additionally, there is income support for sick or self-isolating workers for up to $500 per week for up to six weeks. Given that Canadian small businesses employ 67.7% of the total Canadian private work force, this is a helpful tool as we ride out the pandemic into its endemic stages. In addition, if a business is owned by an Indigenous person, there are non-repayable contributions available from the government.
While many grants currently are focused on businesses affected by Covid, Canada also provides many other opportunities for general small business support. For example, a mentorship program for women-led small businesses on Prince Edward Island is open for applications. The program is twelve weeks, with direct mentorship, peer support, and market analysis, in addition to a dedicated workplace. While this isn’t funding, it does provide help that can hopefully change inequality at a systemic level.
Small businesses that work in the renewable energy or grid modernization space are also able to apply for over $50 million in repayable contributions. Canada’s government is invested in innovation and emerging technology that could compete at a global scale. Given that 60 percent of Canada’s energy comes from renewable sources and the sector is expected to grow by another 12 percent by 2035, this is an opportunity for small businesses as well, since the Canadian government is so supportive of this trend. Innovation Advisors are available to help guide a business in developing such new technology and can offer an objective perspective and use their extensive network to help the business scale. The IAs can also offer specialized guidance on how to apply for and access government funding.
There are also grants outside government purview. The first place to look is Canada.Grant Watch. With over 27,960 grants listed on this directory, there are several opportunities to apply for funding. While this is a subscription-based site, there are flexible plans–one can even subscribe for a week for a low fee. Plus, there is a whole section dedicated to small businesses, in addition to several templates for paperwork regarding grants. The site allows business owners to hone in on specific categories and criteria, making it easy to navigate and a helpful resource.
Specialized grants targeting minority business owners are also available. For example, American Express Canda's Blueprint: Backing BIPOC Businesses program offers "a comprehensive mentorship program designed to provide the tools, resources and community to help BIPOC entrepreneurs thrive – plus, recipients [also] receive a $10,000 CAD grant to help take their business to the next level". According to a survey commissioned by Amex, BIPOC business owners face barriers to running their businesses at a higher rate than their white counterparts. This mentorship and grant program is aiming to support the advancement of Black, Indigenous and People of Colour (BIPOC) business owners across Canada.
Applying to these grants, however, takes time, resources, and clarity. Knowing how a business is classified is essential to understanding what funding is available. If your business has more than one classification, use the code that most closely corresponds to business activity. The Canada Small Business Knowledge Centre has access to many resources such as databases, government contacts, commercialization resources, business and marketing plan kits, and more. Understanding your company’s financial landscape and having access to financial paperwork is also necessary for certain grants. Working with a grant writer is also a possibility, as they have the experience and objectivity to present a business in the best light. These can be an added expense, so check these resources first to see what your business needs.
This article is intended for general informational purposes only and does not constitute legal advice or an opinion on any issue. It should not be regarded as comprehensive or a substitute for professional advice.