Wasseem Dirani explores financing avenues for small businesses in Canada

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Canada Small Business Financing Program

HAMILTON, ONTARIO, CANADA, October 11, 2021 /EINPresswire.com/ – Wasseem Dirani explores financing avenues for small businesses in Canada

The economy is starting to recover from the Covid pandemic, but the situation remains difficult for small business owners. Wasseem Dirani, a business finance expert from Hamilton, Ont., Shares several ways Canadian small businesses can find financing and prepare for a prosperous future.

Canada Small Business Financing Program

Managed by the Canadian government, the Small Business Financing Program helps small businesses obtain loans from financial institutions by sharing their risks with lenders. The program has resulted in loans of $ 9.5 billion over the past ten years.

For-profit startups and small businesses in Canada are eligible. Their income must be $ 10 million or less. Farm businesses are not eligible for this program, but there is a similar program for these businesses. Non-profit organizations are not eligible.

Up to $ 1 million is available for each borrower. Of this amount, only $ 350,000 can be used to improve new or used equipment or to improve leased properties.

Apply for a loan

Financial institutions are solely responsible for approving your loan. Visit your local bank or credit union for an application. The government manages the program, but the individual lender has the final say over who receives the money.

How loans can be used

Loans can be used to improve or purchase buildings or land for business purposes. They can be used to upgrade or purchase equipment for your business. They can also finance leasehold improvements or renovations that a tenant makes to a leased property.

Examples of items that a Canada Small Business Financing Program loan can finance are commercial vehicles, computer equipment, production equipment, and restaurant equipment. Loans cannot be used to finance inventory, working capital, or research and development.

The Small Business Financing Program requires lenders to take assets as collateral for loans. This helps support higher loan amounts and protects the government from losses.

BDC small business loans

BDC offers loans of up to $ 100,000 per small business. These loans can be applied online, reducing the time and paperwork required to receive financing.

There are fewer restrictions on financing from BDC than on financing from the Small Business Financing Program. The BDC allows borrowers to use the money for working capital, the purchase of equipment, the purchase of inventory, the marketing of their products, the hiring of consultants, and the compensation of employees, owners and providers. Wasseem Dirani believes this could be a viable financing opportunity for businesses that need a smaller loan with more flexibility.

Canadian Small Business Grants

There are several industry specific grants available through Canadian nonprofits and government. These programs are particularly useful for technology companies.

CanExport SME

This grant is intended to help Canadian companies develop export markets. It provides up to $ 75,000 and covers up to 75% of the costs of developing an e-commerce presence that will help your business reach global markets.

Financing of tourism development in Quebec

This program offers a non-repayable grant to help cover tourism-related costs for business development, accommodation or festivals and events. The amount varies depending on the project. Tourism-related businesses may need to make a deposit to receive the grant.

Idea for Innovation Grants

This technology transfer program encourages collaboration between eligible academic institutions and small businesses. This funding is intended to support R&D and beta testing. It covers up to 50 percent of eligible costs.

Mitacs Elevation

This grant ranges from $ 60,000 to $ 120,000 and provides businesses with the support of a postdoctoral fellow from an eligible university. It can help tech companies deepen their knowledge with the latest information.

Innovative Solutions Canada Program

Small businesses can be funded to create innovative solutions to the challenges facing the Canadian government. The program involves developing a product or service, testing prototypes and encouraging a viable route to commercialization. Eligible businesses are for-profit, incorporated in Canada, have 499 or fewer employees, and conduct research and development in Canada. They must devote at least 50 percent of their wages and salaries to employees who work primarily in Canada.

Canada Job Grant

The Canada Job Grant provides 50 to 100 percent funding for employee training. The program is administered by the various provinces and allocates $ 194 million annually to eligible businesses.

Find money for your business

Finding money for your startup is always a challenge, but it’s important to consider all avenues of funding. Fortunately, the Canadian government and associated institutions are more generous to small businesses than governments of other countries. Grants, loans and non-recoverable payments are available for a wide range of purposes.

Wasseem Dirani recommends that small businesses of all types do their research on the types of funding they can expect to receive. They may be pleasantly surprised at the number of opportunities that exist in Canada.

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