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If you need fresh capitalization for your business in order to start a new venture or expand operations, probably the first thing that you will do is to get loans from commercial banks. The trouble is that most banks today are not very keen on giving loans especially for small businesses. That is because they consider small businesses as risky investment and they do not want to be saddled with bad debts. Fortunately, the Canadian government is providing a breather for small businesses through its grant programs. So heres how to choose the most suitable grants available for your business.

First, you should determine the specific capitalization need of your company. Do you need one time funding for the purchase of equipments or to restock your inventory? Do you need long term funding for an ongoing project? It is important to answer such questions because there are different types of grant programs provided of the Canadian government. Choosing the correct type of funding will increase your chances of getting government grants. So you need to make a business assessment first in order to determine what your needs are. Then you have to draft a specific business plan that will answer the needs of your company. These feasibility studies will be needed when you apply for Canadian government grants.

So if you have an immediate need for the purchase of special equipment for your business, then probably you should apply for one-time grants or loans. These types of grant programs are especially designed for such purpose. These grants can also be used to subsidize your employee apprenticeship program, research and development, and acquisition of software for modernizing your business. One time government grant is easier to acquire and the necessary documentations for such program would be less complicated. That is why this type of government grant is highly favored by micro entrepreneurs, start-up companies, and small cottage industries.

On the other hand, if you needed long term capitalization for an ongoing project, then you can apply for renewable grant programs or renewable loans. These types of government grants are ideal for businesses that are expanding their operations. During expansion, a company goes through several cycles of development. Each stage will need capitalization in order to sustain continued growth. So, renewable government grant will be the best funding option. You will be able to get bigger amount from renewable grant programs. However, most of these programs are also considered loans because you have to repay the grant as your business grows. But you need not worry though because the terms of repayment for such programs are usually very favorable for the business owner.

A government grant can be used for starting up a new company or for expanding an existing business. You need to know your special business needs so you can look for the appropriate government grants that will satisfy your need for more capitalization. Your chances of getting a grant will be higher also if you will apply for the right program.
Do you want to know how to get Canadian government grants http://www.grants-loans.org ? Visit our website today and learn how you can effectively apply for loans and grant programs http://www.grants-loans.org/government-grant-programs.php of the Canadian government.