More than ever Canada’s economic future will be shaped by the success that the nation’s small to medium-sized businesses (SMEs) achieve in global markets –but Canadian SMEs face a number of challenges:
A comparatively strong Canadian dollar,
Relatively low levels of progress in terms of productivity gains, and,
Trouble accessing financing and capital to expand business.
These challenges add to the list of other common problems facing SMEs from fellow OECD countries, but despite these obstacles, Canadian SMEs have continued to make progress. How? By turning to government business grants and loans programs that support trade missions, product certification, the development of e-commerce portals, and hiring grants that fund up to 50% of wages of new hires.
Canadian Business Grants for Business Expansion Success Story:
The owners of a bakery operation in the Vaughan region needed to secure SQF certification to support expansion efforts into major US retailers. The improvements in food traceability were coupled with a review and workflow optimization of existing processes and adoption of additional ERP modules. The firm was able to secure over 50% of the related contractor fees related to the audit, process review, certification, and ERP installation costs, to a total amount of approx. $140,000 over a 6 month period. The funding subsidizes these activities and allows for allocation of this cash toward additional improvements that will ensure a timely expansion while maintaining operating efficiency and food safety.
Top 4 Small Business Grants for Business Expansion
While additional opportunities may be available for SMEs from various sectors, the following Canadian and Ontario government grants programs are widely accessible to Ontario businesses looking to expand their domestic and global market share.
1. Export Market Access (EMA) Ontario Business Grants
The Federal Economic Development Agency for Southern Ontario (FedDev) and the Ontario Chamber of Commerce (OCC) have developed EMA small business government grants as a part of the Global Growth Fund to help SMEs access and penetrate global markets including China and Hong Kong, India and the US.
EMA Ontario Business Grants Eligible activities
Activities eligible for coverage by EMA government business grants include: exhibiting at international trade shows, fairs and exhibits, marketing tools for foreign audiences to market products, market research to target precise international markets, and bidding on foreign projects against foreign competition. Companies can even use this grant to gain foreign product certifications required to sell to a particular export region. Funding supports expenses across a wide variety of categories, including marketing brochures, trade shows, display panels, banners, flights and meal/lodging per dime allowance.
Export Market Access Program Details
Amount: Max of $30,000 non-repayable or up to 50% of project. Can be applied for twice in 12-month period.
Timeline: Only one project open at any one time. Must be approved prior to incurring eligible expenses.
Eligibility: Between 5-500 people on payroll, >$500k in revenues and 2 or more years incorporated in Ontario.
2. Ontario Exporters Fund (OEF) Business Grants Ontario
The Ontario Chamber of Commerce developed the Ontario Exporters Fund (OEF) to support the hiring of an Export Manager to help drive the international export activities of Ontario SMEs.
OEF Ontario Small Business Grants Details
Amount: $40,000/year grant for 2 years ($80,000 max.) towards the hiring of an Export Manager.
Timeline: Open.
Eligibility Factors: 10-50% of total sales in exports, $1M-20M in annual revenue, 5-500 payroll employees, and operate in a priority sector (Advanced Manufacturing, Aerospace, Building Products and Construction, CleanTech, Exportable Professional Services, ICT including Digital Media, and/or Life Sciences).
3. Industrial Research Assistance Program (IRAP) Accelerated Review Process (ARP)
The National Research Council of Canada (NRCAN) offers federal funding through IRAP ARP that will assist small to medium-sized businesses across Canada “solve an innovation challenge.” The loose focus of this program opens up a great number of opportunities for SMEs to take advantage of Canadian government grants offered through this program.
IRAP ARP Small Business Grants for Marketing Expansion
Clients of ours have successfully accessed IRAP funding to develop or improve websites and or e-commerce portals to better reach export markets and overcome challenges due to differences in times zones.
IRAP ARP Funding Details
Amount: Maximum $50,000 in non-repayable grant covering up to 80% of direct labour and 50% sub-contractor expenses.
Timeline: Federal funding released April 1 each year.
Eligibility: 1-500 people on payroll, at least 2 years incorporated, and a commitment to internal R&D activities.
4. Yves Global AIME Ontario Government Grants for Training
Ontario business grants funding for training offered through the Yves Landry Foundation’s Global AIME Initiative offers support for the adaptation of new technology, processes and/or procedures in an SME’s effort to expand their export program. Mentor Works has seen projects such as the development of new engineering skills, training of employees on new software, hardware or other tools for innovation.
Yves Small Business Grants Ontario for Training Details
Amount: Maximum $50,000 non-repayable covering up to 50% of direct labour and 50% of sub-contractor expenses.
Timeline: While still receiving applications, new funding for this program is expected to be released in Q1 of 2014.
Eligibility: 15-1500 people on payroll, at least 3 years incorporated, and a Ontario-based manufacturer. Training programs can include multiple training themes over a period of 16 weeks or less.
Connect with Mentor Works for Canadian Small Business Grants and Loans Information and Support Services
Stay in touch with Mentor Works by subscribing to their Canadian business grants and loans weekly e-newsletter. If your business has at least 15 employees, has been incorporated for 2 years or more, and manufactures and/or performs R&D in Canada please contact Mentor Works for additional information on how to proceed with one or more applications.