Getting Government Business Grants
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Transcript of Getting Government Business Grants
WelcomeThe Business Guide Inc. presents:
Accessing Government FundingAccessing Government Funding
How To Apply For (and Get)How To Apply For (and Get) Government Grants and Loans Government Grants and Loans
Thursday, February 16, 20122
The Application Process The Application Process
•Gather The Program Information• Eligibility Criteria• Types of Funding available• Eligible Costs• Assessment CriteriaAssessment Criteria
•Submit the Proposal •Follow-up.
Thursday, February 16, 2012 3
Eligibility Criteria
• Varies from program to program but generally speaking the most common ones are:
• Business (jobs) must be located in Canada• Must be a new or expanding business/organization• Must be sole proprietorship, incorporated or
partnership.
Thursday, February 16, 2012 4
Available Funding • Interest free loans (deferred payments)-Example
ACOA• Interest bearing loans - Example: Business
Development of Canada• Non repayable contributions (Grants) Example:
Service Canada• Tax incentives – Example: Canada Revenue Agency• Loan Guarantees - SBL 75% guaranteed by Gov’t of
Canada• Equity Position
Thursday, February 16, 2012 5
Eligible Costs
• Wages/Salaries• Overhead/Administrative• Capital Costs/Equipment Purchases• Special Costs• Pre-operational- marketing studies,
businesses plan preparation etc.
Thursday, February 16, 2012 6
The Application Process The Application Process
•Gather The Program Information• Eligibility Criteria• Types of Funding available• Eligible Costs• Assessment CriteriaAssessment Criteria
•Submit the Proposal •Follow-up.
Thursday, February 16, 2012 7
The Most Important StepThe Most Important Step
“Determining the Assessment Criteria"
Definition:
The assessment criteria is what economic development officers rate your proposal against when deciding whether it is worthy of funding.
Thursday, February 16, 2012 8
Ownership/Management
• Who are the owners?? (No surprises)
• Credit/Background Check-Personal and Corp. (Credit Bureau and Dun/Bradstreet)
• Education levels
• Experience in the industry
Thursday, February 16, 2012 9
Competitive Impact / Net Competitive Impact / Net Economic BenefitEconomic Benefit
• The potential of your proposal having an adverse impact on an existing business.
• If your proposal creates new jobs in the local labour market at the expense of an existing business, then there is deemed to be no net economic benefit.
• This is an issue of capacity, not numbers
Thursday, February 16, 2012 10
Economic ViabilityEconomic Viability
• Simply stated it means does the proposal make sense? Will it be profitable? One way this is determined is by examining the projected and historical financial statements.
• How realistic are the sales projections and associated costs
• The bottom line here is be realistic.
Thursday, February 16, 2012 11
Sustainable EmploymentSustainable Employment
• Jobs that continue following government involvement
• Will you generate enough revenue to maintain the projected employment levels.
Once again the financial statements are usually the best indication of
sustainability.
Thursday, February 16, 2012 12
Incremental Employment
• The jobs created must be new.
• Very little funding available for “Employment Maintenance”
Thursday, February 16, 2012 13
Return on InvestmentReturn on Investment
• Divide the proposed number of jobs to be created into the requested contribution.
• If the cost per job is too high, it is not cost effective.
• Try to keep it below $10-$15,000 per job
Thursday, February 16, 2012 14
Priority SectorPriority Sector• Governments identify certain sectors of the
economy as growth sectors.
• Examples of existing ones are information technology, the environment, tourism and manufacturing.
• If possible try to relate your proposal to a priority sector. – Example: IT company– Non IT company creating IT jobs
Thursday, February 16, 2012 15
PartnershipsPartnerships
• The more people that form part of the financial equation the better.
• You should also be investing some equity yourself. Minimum equity requirement for some programs.
Thursday, February 16, 2012 16
Demonstrated Need
• You must show you need the money
• The initiative will not take place without government assistance
• Financial Statements should reflect this. What is net profit at year end.
Thursday, February 16, 2012 17
Submit The Proposal
• Create a good First Impression
• Nothing can replace the effectiveness of personal contact.
• If this is not possible, phone.
• Never do a blind submission.
Thursday, February 16, 2012 18
Know Your EnvironmentKnow Your Environment
Political Environment
• legitimate political considerations such as:• each constituency being treated equitably with
regard to budgetary allocations, • elected officials being involved and informed as to
what is happening in their riding. • the potential for controversy involved with any
funding decision. • Get Politicians Support
Thursday, February 16, 2012 19
Know Your Environment (cont’d)Know Your Environment (cont’d)
Bureaucratic Environment
• The wheels can only turn so fast.
• Committees make funding decisions.
• Don’t get frustrated.
• Dignity and respect
• Fiscal Years
Thursday, February 16, 2012 20
Follow Up
• Maintain contact
• Don’t be a pest
• Do you require anything further??
Thursday, February 16, 2012 21
Know Why No!!
• Ask for Justification
• Ask for it in writing
• Is there an appeal process
• Ask dept/agency to work with you to make proposal acceptable
Thursday, February 16, 2012 22
Thank YouThank You
The Business Guide Inc.
St. John’s, NL. Tel: 75Guide (754-8433)
Internet: Internet: www.businessguide.netwww.businessguide.netTwitter: Twitter: @SharonYMonahan@SharonYMonahan
Facebook: Facebook: http://www.facebook.com/BusinessGranthttp://www.facebook.com/BusinessGrant