This grant blog addresses the following topics:
- Why few start-up grants exist
- Start-up grants presented in the following categories: agriculture, Aboriginal, and technology
- A secret gem
Do grants exist for start-up companies?
Are there many?
Where are they?
Further down in this blog.
Contrary to what you probably heard, you will find few grants for start-up companies. And it shouldn’t come as a surprise.
Governments are risk adverse; they are reluctant to give money to start-up businesses.
Everyone knows that most businesses start and fail within a couple years.
Most grants are for established businesses (and established non-profits).
Many grants work like this: you spend the money first, and the grant reimburses you 50 percent or 75 percent – in the event of stacking.
GRANT STACKING IS WHEN YOU TAKE TWO OR MORE GRANTS AND APPLY THEM TO THE SAME PROJECT. GRANT STACKING IS USUALLY ENCOURAGED BY GRANT AGENCIES.
Here is the stacking section from the Alberta Innovates Product Demonstration Program guide:
Some grants do exist for start-up businesses, and we present them here for your convenience.
I bet they will be similar to the old program.
3 Grants You Need To Know About
1. AGRICULTURE | PRODUCTS TO MARKETS PROGRAM
Value: The Program provides grants on a cost-shared basis to cover Eligible Expenses for approved Projects up to a maximum of $50,000 per Applicant per Fiscal Year. Eligible Capital Expenses shall be cost-shared at 25% grant and 75% Applicant; and b) Eligible Non-Capital Expenses shall be cost-shared at 50% grant and 50% Applicant.
The purpose of the Canadian Agricultural Partnership Products to Markets Program is to support growth of Alberta’s agricultural industries by supporting development of New Products and/or processes, commercialization of products in New Markets, and expansion into local, domestic and international markets.
- Industry Organizations;
- New Entrants; and
- Producers who are: i. adding value past primary agricultural production; or ii. involved in international market development activities.
- Product and Process Development
- Label and Package Development (must be supported by marketing plan)
- Processing Capacity Expansion
- Market Development
- Export Preparation and Planning
- Product Demonstration
- Activities to Support Aggregation and Distribution of Food
- AF-led Outbound Trade Initiatives
2. ABORIGINAL BUSINESS AND ENTREPRENEURSHIP DEVELOPMENT (ABED) | INDIGENOUS AND NORTHERN AFFAIRS CANADA:
Value: Funding maximums are up to $99,999 for Aboriginal individuals and incorporated businesses and up to $250,000 for community owned businesses.
ABED works with Aboriginal entrepreneurs, communities, and organizations to achieve their business goals by providing a range of services and support that promote the growth of a strong Aboriginal business sector. Support will vary depending upon the needs of the client, the availability and sources of funding, the eligibility of costs, the economic benefits, and the project viability.
Clients must be individuals of Canadian Aboriginal heritage — Status or Non-status Indian (on or off-reserve), Métis or Inuit — or a majority-owned Aboriginal business, or an Aboriginal community and/or development corporation
To be eligible for support, clients should also be involved full-time with the proposed business in a management capacity and must be able to provide some level of cash equity to support the project
- Business planning
- Establishment (capital) costs
- Business acquisitions
- Business expansions
- Marketing initiatives that are local, domestic, or export oriented
- New product or process development
- Adding technology to improve operations and competitiveness
- Operating costs in association with capital costs
- Financial services, business support, business-related training, and mentoring services
Deadline: Ongoing. Speak with regional Aboriginal Financial Institution (AFI) before applying.
Contact: Alberta Métis Development Inc. (AMDI) | 1-800-252-7963 | firstname.lastname@example.org
Micro-Voucher | Alberta Innovates Technology Futures (AITF):
Value: Up to $10,000, paid directly to a Service or Product Provider.
The Micro-Voucher is designed to support technologies in the early developmental stages, from TRL 2 to TRL 4 inclusive – for early start-up development. The Service or Product Provider provides any one or more of the following items for the benefit of the Applicant:
- Market assessments
- Business plan development
- Intellectual property assessments
- Acquisition of materials and/or equipment critical to the Applicant’s operations
- The Applicant must pay a minimum cash contribution of 25% of the Project Costs directly to the Service or Product Provider. Strategic Timelines Inc. is a service provider for this program.
The Service or Product Provider (applicable for the Micro-Voucher Program only) – the person or entity named in the Application who is providing services and/or products to the Applicant during the course of the Project must meet the following criteria:
Must have demonstrated qualification, capabilities and capacity to successfully perform the work required or deliver the applicable product in or for the Project in a timely manner
Must be Arm’s Length from the Applicant (cannot have any legal relationship with the Applicant
Does not have an outstanding balance or otherwise owe money to an Alberta Innovates organization, subsidiary, or partner
Must provide the service(s) and/or product(s) at reasonable market rates
Contact: Neelum Mangat | 780.450.5085 | email@example.com
As we’ve been building the Alberta Business Grants database for years, we’ve come across government funded programs.
Are they exactly grants? No. But they are government programs you can benefit for free.
FREE GOVERNMENT FUNDED SELF EMPLOYMENT TRAINING
It’s a training program designed to help Albertans get into business quickly. The folks at the Microbusiness Training Centre are awesome. A program exists in Calgary too.
NEXT GRANT STEP
Before you ever write a grant, you need to speak with the grant agency. I have come up with SIX questions for the grant agency that will SAVE you enormous time and headache. You can read those questions here.