Every year, the Canadian government gives away billions of dollars in government funds. This money is awarded as grants to individuals, educational institutions, small businesses and corporations. For many, government grants have opened up doors and provided opportunities to earn a higher education, start a new business or expand a business you already have. And the best thing about government grants is that you never have to pay the money back.

Government Grants

In a typical loan, either through the government or a bank, you are required to work through a complicated application to borrow money for a set amount of time. With government grants, you receive part of the billions of dollars given away and in most cases don’t have to repay it.

Applying for a government grant can actually be easier than the paperwork and credit required for a loan. In fact, many business people who don’t qualify for loans, even on their personal credit, are able to obtain a government grant without a great deal of trouble.

Common Canadian Government Grant Programs

Government grants are available to companies and non-profit agencies that work in areas covering minority assistance, research of many kinds, and development of new ideas and products. Businesses that are owned by minorities or women are especially likely to receive grants for continued development, but there are available programs for all populations and business types.

Government Grants and Loans

There are some differences between government grants and loans. A grant is money that is earmarked for certain endeavors or is awarded through criteria a business or individual must meet. Loans are also awarded based on meeting specific requirements. Both require some form of application, however government grants are not sums of money that is borrowed the same as a loan. Government grants do not have to be repaid as long as the initial grant requirements are met.

In many cases, government grants are distributed over a number of years. The grant might distribute a sum of money over a period of three or five years. To receive funds for the next year, progress or the use of funds must be revealed to the government.