Small Business Grants & Loans: “Double-Dipping” & “Stacking”






  • double dip

    Seinfeld fans have another definition of double-dipping. However, when it comes to funding, it can be a good thing.

    Written by Anne Toner Fung, Business Development Executive at Mentor Works.

    At Mentor Works, we are often asked if multiple Ontario small business grants and/or loans programs can be accessed for one strategic initiative or project. In certain cases, the answer to this question is “yes,” within acceptable limits and rules. The applicable limits and rules may change from one funding source to the next, so it is important to understand the parameters of the particular program you are interested in.

    What does it mean to “stack” small business grants and/or loans?

    Stacking involves accessing more than one source of Canadian government funding to cover a single project. For example, a manufacturer might access IRAP funding to support the internal salary and third party consulting costs for an automation implementation, and then apply for funding through the another program to cover the costs of training employees on the new system. This is a legitimate use of multiple funders to cover eligible costs on one project.

    What does “double-dipping” mean when referring to accessing Canadian small business grants and loans?

    Double-dipping is not always a faux-pas, at least not when it comes to Canadian small business grants and loans.  In reference to accessing Canadian government funding, double dipping occurs when you access the small business grants and or loans program more than once in a given funding cycle.   Every program is different, but some programs will allow participants to apply for and fund multiple projects at the same time.

    Canadian Government Funding:  Stacking Rules to Remember

    1. Generally, you can stack federal money against provincial money as long as you don’t exceed the maximum allowable government contribution (typically 75% of total project cost).
    2. In most cases, you cannot stack multiple provincial funding programs on one project.
    3. In some cases, you can stack more than one federal funding program against the same project, as you don’t exceed the maximum allowable government contribution (usually 75% of total project cost).
    4. As long as you stay within the maximum allowable contribution limits identified by the funders, stacking is a key strategy for maximizing the impact of government funding for your business.

    Learning the More about How to Access Small Business Grants Canada and Small Business Loans Ontario

    Our clients tell us that our ability to develop funding strategies that legitimately stack multiple funding sources against critical initiatives is one of the most valuable assets we bring to the table. Mentor Works helps you maximize the bottom line impact of government funding, while successfully steering you around obstacles and potential pitfalls.

    Find and Access Government Small Business Grants and Loans Programs

    Look no further than Mentor Works to find and access small business grants and loans programs to help achieve your strategic goals faster.   Subscribe to our Canadian small business grants and loans weekly e-newsletter and follow us on YouTube, LinkedIn, and Twitter.

    August 13th, 2013 | Mentor Works Ltd. | No Comments | Tags: , ,

About The Author

Mentor Works

Mentor Works provides business support services related to Canadian government funding for business. By assessing our clients’ strategic objectives and innovation challenges, we are able to match optimal government grants for small businesses in Ontario, Canada, as well as loans and tax credits.