Avoid This Mistake if You Want to Apply for Government Funding

I constantly come across growing businesses. They hire new people, adopt advanced technologies and equipment, invest in their communities and do good for the country. But sometimes it happens that the growth becomes limited by the existing business entity.

For example, if one is in the business of making bricks and decides to enter the business of making flooring, the one may decide to establish a new business entity to keep the existing business out of the risks of a new one. That makes perfect business sense.

But what happens when the business owner from our example applies for government funding?The one does not meet eligibility criteria!

How is it possible?

The problem is that most of government funding programs require the applicant to demonstrate track record of business performance and profitability for at least 2-3 years prior to the application. It means not to be incorporated for 2-3 years (though it is important), but to be profitable for 2-3 years in a row. Can a newly registered company meet this requirement? Obviously not.

A client of ours has recently bumped into this wall. The client established a new company and intended to purchase a building and equipment, and hire 12 new employees to enter the new niche market targeting same customers with a completely different product. Regrettably, the project did not meet eligibility criteria. It did not even matter that existing and new business entity shared the same ownership and that the existing company pays the bills.

Avoid such mistakes! Contact us at 647.535.2970 to discuss your plans or simply  fill in a secure form at www.fairgrantwriting.ca/eligibility to determine your eligibility any time!

Igor Chigrin

Business Funding Expert
Fair Grant Writing
You GET government financing OR our grant writing is FREE! 
P.S. If you are in a similar situation and close to making significant investment in your business, keep in mind that in order to be eligible for government funding you must keep the same business entity rather than registering a brand new one. Check your eligibility 24/7 at www.fairgrantwriting.ca/eligibility .