Many clients ask us why they should consider applying for government loans. They initially express a lack of enthusiasm because they have to pay the loans back and would rather deal with their banks. Here is what you should know about the government loans to make an informed application decision.
1. No Interest. All government loans are interest-free. So you immediately save on interest.
2. No Collateral. In case if something goes wrong, the government won’t come after your home.
3. Grace Period. Many government loan programs allow flexible grace periods, i.e. you don’t start repayment until 12 months after your project is completed.
4. Large Caps. Most of the non-repayable grants are capped to $100,000. There are government loan programs that pay over $10 million.
5. High Stacking Limits. You can combine the government loans with the grants and tax credits, up to a maximum of 75% of the project cost.
6. Repay Commercial Loan Sooner. The government provides loans on a quarterly or annual basis. You can pay back 35%-50% of the commercial loan amount with the government loan, and save on interest and repay the commercial loan sooner at the same time.
Does your business qualify for the above and other government funding programs? Fill out Eligibility Check form at http://www.fgwinc.ca/eligibility to find out.

CHECK ELIGIBILITY

Last weekend the Federal government announced the Women Entrepreneurship Fund. This is a time-limited but lucrative opportunity for women-owned or -controlled businesses to get up to $100,000 in non-repayable funding. The application deadline is November 15, 2018.

The money can be spent on either (1) pursuing export market opportunities or (2) business scale-up, expansion and growth which includes the broad range of eligible cost from labour to software and equipment.

Last Thursday most Ontarians granted the Ontario PC party a majority. No matter which candidate you have voted for you better know what the change in government could mean for the government finding. Below is my expert opinion based on the analysis of the OPC platform.

1. The change won’t impact the Federal funding programs such as CanExport for marketing activities to open new export markets, IRAP, etc.

2. The change will less likely impact jointly funded programs such as COJG for skills training, Canadian Agricultural Partnership which funds Ontario farmers, food and beverage manufacturers, and SR&ED Tax Credit.

3. Ontario Jobs and Prosperity Fund will most likely be terminated. New applications will not be accepted during the transition period.

4. Southwestern, Eastern and Northern Ontario development funds will likely remain intact, but the upcoming Greater Toronto and Hamilton Area Development Fund promised by the Liberals in the last budget could never be open for applications.

5. The cancellation of Cap and Trade program will put all provincial greenhouse gas emission reduction funding at risk including Green ON initiatives (formerly SMART Green), Target GHG and several R&D funds focused on the subject. All those programs were financed by the revenue from Cap and Trade Program and carbon tax.

6. Expect delays. It will likely take the new government 3-6 months to get up to speed which may impact the new applications. They may be put on hold or rejected until further notice.

7. Value for dollar audit of the government programs. This is certainly a great idea I like as a taxpayer, and even though it will slow the provincial funding down, there is a chance that the most performing programs will be extended. However, it’s difficult to predict how long the audit will take, likely over a year. If you have received the provincial funding in the past, remember that the government has a right to get back to you with an audit even after your project is completed. You’d better start looking for project files and binders. Also, we don’t expect any new programs until the old programs are audited.

If you have never applied for the provincial finding it is a good idea to check which programs your business is eligible for and try our improved self-service eligibility check.

CHECK ELIGIBILITY NOW

You may know that I came to grant writing business from export & import consulting, and still, do it on the side. I could not just sit and do nothing about the steel and aluminum tariff hike by the U.S. which is effective on June 1st, 2018. Even if you are not in metal business, there is no guarantee that your industry won’t be next one on a target list for sanctions.

• What to do now?
• How to protect your business from such unfriendly actions?
• How to reduce the damage if your business is impacted?

Read our practical post now to find the answers. Share it with your friend, partners, suppliers or clients that may be impacted or are confused what to do now.

LEARN WHAT TO DO NOW

Keep in mind that the Federal government has a funding program to cover 50% of your export market development costs in the new export market. That said if your #1 market in the U.S. there is funding for you to develop other markets.

CHECK ELIGIBILITY NOW

You are cordially invited to join us at the upcoming complimentary webinar on Canadian government funding for businesses. You will learn:

• What’s new for your business in 2018 Federal and provincial budgets
• What funds are available for agri-, food & beverage sector for the next 5 years
• Overview of available government funding programs for businesses of all sectors
• Eligibility rules
• Tips from the writers and the funding organizations

This webinar is organized and brought to you by Bond Consulting. Join us online on April 26, 2018, at 11 a.m.

REGISTER NOW

Please, RSVP by April 19th as spots are limited.

The new fiscal year is coming and Federal Government released the budget. There are no breakthroughs like major new funds announcements for businesses, so below please find key takeaways. If you have any questions or wanted to proceed with the application submission, simply reply to this email.

Good News

• Industrial Research Assistance Program (IRAP) gets more funding. For the past few years, the program was underfunded and oversubscribed. The program supports R&D on early and middle stages.
• Canada Summer Jobs gets more funding again (not, you can only apply in December 2018)
• Canada Job Grant programs for skills training will be extended and renewed following the extension of Federal-Provincial labour market agreements. No changes in rules as of now.
• The funding with regional development agencies such as FedDev Ontario IBI and IBGP programs will be renewed and extended.
• Many programs will be consolidated to reduce the number of hoops to jump through and time it takes to find the right funding program. This includes export development programs, like CanExport, and FedDev Ontario programs.
  There are still provincial funding opportunities that are not impacted by Federal budget.

CHECK ELIGIBILITY NOW

                                                                   Bad News

• Programs consolidation will likely take 6-9 months. Expect longer than normal delays in application review process or rejections “until new program rules are created”.
• Reform of Federal Development Agencies will likely delay the replenishment of Yves Landry Foundation’s program for skills training and CME SMART Program for advanced equipment acquisition. Those programs were previously funded by FedDev Ontario.
• Strategic Innovation Fund for R&D and business expansion will now only accept applications for the projects of at least $10 million in eligible cost. We are yet to determine what will happen with the applications that are already submitted.
• No word on the funding for productivity improvement and equipment purchase.
• No word on the funding for skills training internally. Instead, a few million dollars will be allocated to a “lab” that would develop innovative training methods (what?).

CHECK ELIGIBILITY NOW