Getting Government Business Grants

WelcomeThe Business Guide Inc. presents:

Accessing Government FundingAccessing Government Funding

How To Apply For (and Get)How To Apply For (and Get) Government Grants and Loans Government Grants and Loans

Thursday, February 16, 20122

The Application Process The Application Process

•Gather The Program Information• Eligibility Criteria• Types of Funding available• Eligible Costs• Assessment CriteriaAssessment Criteria

•Submit the Proposal •Follow-up.

Thursday, February 16, 2012 3

Eligibility Criteria

• Varies from program to program but generally speaking the most common ones are:

• Business (jobs) must be located in Canada• Must be a new or expanding business/organization• Must be sole proprietorship, incorporated or

partnership.


Available Funding • Interest free loans (deferred payments)-Example

ACOA• Interest bearing loans - Example: Business

Development of Canada• Non repayable contributions (Grants) Example:

Service Canada• Tax incentives – Example: Canada Revenue Agency• Loan Guarantees - SBL 75% guaranteed by Gov’t of

Canada• Equity Position


Eligible Costs

• Wages/Salaries• Overhead/Administrative• Capital Costs/Equipment Purchases• Special Costs• Pre-operational- marketing studies,

businesses plan preparation etc.


The Application Process The Application Process

•Gather The Program Information• Eligibility Criteria• Types of Funding available• Eligible Costs• Assessment CriteriaAssessment Criteria

•Submit the Proposal •Follow-up.


The Most Important StepThe Most Important Step

“Determining the Assessment Criteria"

Definition:

The assessment criteria is what economic development officers rate your proposal against when deciding whether it is worthy of funding.


Ownership/Management

• Who are the owners?? (No surprises)

• Credit/Background Check-Personal and Corp. (Credit Bureau and Dun/Bradstreet)

• Education levels

• Experience in the industry


Competitive Impact / Net Competitive Impact / Net Economic BenefitEconomic Benefit

• The potential of your proposal having an adverse impact on an existing business.

• If your proposal creates new jobs in the local labour market at the expense of an existing business, then there is deemed to be no net economic benefit.

• This is an issue of capacity, not numbers


Economic ViabilityEconomic Viability

• Simply stated it means does the proposal make sense? Will it be profitable? One way this is determined is by examining the projected and historical financial statements.

• How realistic are the sales projections and associated costs

• The bottom line here is be realistic.


Sustainable EmploymentSustainable Employment

• Jobs that continue following government involvement

• Will you generate enough revenue to maintain the projected employment levels.

Once again the financial statements are usually the best indication of

sustainability.


Incremental Employment

• The jobs created must be new.

• Very little funding available for “Employment Maintenance”


Return on InvestmentReturn on Investment

• Divide the proposed number of jobs to be created into the requested contribution.

• If the cost per job is too high, it is not cost effective.

• Try to keep it below $10-$15,000 per job


Priority SectorPriority Sector• Governments identify certain sectors of the

economy as growth sectors.

• Examples of existing ones are information technology, the environment, tourism and manufacturing.

• If possible try to relate your proposal to a priority sector. – Example: IT company– Non IT company creating IT jobs


PartnershipsPartnerships

• The more people that form part of the financial equation the better.

• You should also be investing some equity yourself. Minimum equity requirement for some programs.


Demonstrated Need

• You must show you need the money

• The initiative will not take place without government assistance

• Financial Statements should reflect this. What is net profit at year end.


Submit The Proposal

• Create a good First Impression

• Nothing can replace the effectiveness of personal contact.

• If this is not possible, phone.

• Never do a blind submission.


Know Your EnvironmentKnow Your Environment

Political Environment

• legitimate political considerations such as:• each constituency being treated equitably with

regard to budgetary allocations, • elected officials being involved and informed as to

what is happening in their riding. • the potential for controversy involved with any

funding decision. • Get Politicians Support


Know Your Environment (cont’d)Know Your Environment (cont’d)

Bureaucratic Environment

• The wheels can only turn so fast.

• Committees make funding decisions.

• Don’t get frustrated.

• Dignity and respect

• Fiscal Years


Follow Up

• Maintain contact

• Don’t be a pest

• Do you require anything further??


Know Why No!!

• Ask for Justification

• Ask for it in writing

• Is there an appeal process

• Ask dept/agency to work with you to make proposal acceptable


Thank YouThank You

The Business Guide Inc.

St. John’s, NL. Tel: 75Guide (754-8433)

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