Over the past decade, a large number of successful software development and technology firms have originated in the Southwestern Ontario Region. These success stories have sparked the imaginations and interests of hundreds of young and talented entrepreneurs within the region. These individuals have identified a problem along with an innovative solution; they now require the start-up capital to get their business concepts off the ground. Many entrepreneurs would prefer to acquire start-up capital without having to sacrifice equity of their company. Luckily, government funding Ontario provides low-interest financing programs and small business funding grants in support of start-ups and young entrepreneurs.
Low-Interest Financing Options for Canadian Small Business
Young small businesses and start-ups are viewed as risky investments from the perspectives of most banks and investors. However, these initial funds are also crucial to their success, as they will most likely be put towards preliminary hires and patents. The Ontario Government has provided several opportunities for businesses to acquire these initial funds through government funding Canada:
- FedDev Investing in Business Innovation (IBI): This program provides a fully repayable low-interest loan up to $1M with 33% contribution from the Canadian Government based on a term sheet from an accredited investor. The terms of the loan are undefined and can be negotiated with a FedDev representative.
- Community Futures Development Corporations (CFDC): Small Businesses and start-ups located in rural Ontario can access up to $150K in low-interest financing for start-up and expansion projects. In order to be considered eligible your business must be located in a part of rural Ontario.
- MaRS Regional Innovation Centres (RIC): Local RICs are dedicated to supporting Ontarios start-up companies to expand and develop into viable competitors within their industry. The Regional Innovation Centres work closely with small businesses to locate and acquire small business government grants for start-ups.
Locating Canadian Government Funding for Small Business
If your company has been incorporated for 2 years or longer and have a minimum of 15 employees than your company may qualify for one or more of these programs. Please Contact Us and we will provide additional information on how to connect government funding to your top strategic initiatives and proceed with your application. Our expertise in Canadian Government Funding Programs focuses on helping manufacturers and software developers that are committed to research & development investment in Canada.
Based on these criteria for the majority of funding programs, if you don’t see a program that you qualify for or that interests you, feel free to receive regular updates on new & existing government funding programs. Please Sign Up for Our Government Funding E-Newsletter. Alternatively, you can connect with us on LinkedIn, YouTube, Pinterest, Facebook, Google+, Tumblr, and Twitter.