Federal Financing For Small Businesses in Canada - Funding Sources

Funding Sources

Funding and supportive services are administered by a variety of central, provincial, regional and local offices, including federal government departments, federal government agencies, non-profit corporations, financial institutions and chartered banks. Programs may be targeted by industry, region, or other criteria, such as programs for young entrepreneurs or Aboriginal entrepreneurs. Application requirements for federal grants and loans programs vary, but often include at minimum a completed business plan.

The Business Guide to Government Programs Anyone can apply for government grants in Canada however the government is not about to give business funding to anyone who applies. If you want to learn the right way to apply for government business grants and loans, follow this 3 step process to discover where to find Canadian grants and learn how to apply.

Community Futures Development Corporations Funded by the federal government, these not-for-profit corporations provide business development loans, technical support, training and information for businesses in rural communities throughout Canada. They're run by volunteer boards of directors from local communities as well as salaried staff.

Western Economic Diversification Canada A department of the Government of Canada, Western Economic Diversification Canada sponsors loan programs – which are administered and delivered by financial institutions, including chartered banks, and not-for-profit organizations for businesses in British Columbia, Alberta, Saskatchewan and Manitoba.

Atlantic Canada Opportunities Agency This federal government agency provides financing in the form of loans, interest-free loans, non-repayable contributions and opportunities to attend trade missions for businesses in the Atlantic provinces.

Human Resources and Social Development Canada Through its own offices and third-party offices, this department of the federal government funds a variety of programs aimed at unemployed or underemployed individuals. These include hiring subsidies, entrepreneurial start-up funding (self-employment benefits), and training subsidies.

The Business Development Bank of Canada The Business Development Bank of Canada is a financial institution wholly owned by the government of Canada, which provides small and medium-sized businesses with flexible financing, low-cost consulting services and venture capital.

The Canada Small Business Financing Program This program encourages financial institutions to make their financing available to small businesses. Under the Program, a small business must apply for a loan at a financial institution (bank, credit union or caisse populaire) of its choice. If the loan is granted by the financial institution, the federal government will reimburse 85 percent of the lender's losses in the event of default.