FAQs – Financial Assistance
Are there grants available for starting a business?
While there has been a great reduction in the number of grants available to general business start-up over the past several years, there are some monies available. Most of the existing programs are targeted strictly to specific industries, geographical areas or particular groups of entrepreneurs (minority groups, youth, employment insurance recipients, etc.) To search the database of government programs available in Ontario, click here!
Where can I get a loan for my business?
In the early stages, the most important financial sources will probably be you, friends, relatives and financial institutions.
The most common source of financing for small businesses is the chartered bank. Banks can provide a number of financing options, such as short-term loans, long-term mortgage loans and, in some cases, loans against inventory or accounts receivable. Other important sources of financing in this category include trust companies and credit unions.
For very small firms and home-based businesses, credit cards and lines of credit often provide a ready means of obtaining small-scale debt capital. While convenient, they bear relatively high rates of interest and limit the amount of capital available.
Each situation is different, and it is critical that a good business plan be developed to determine the overall needs of the business.
The Community Futures Development Corporation can also provide assistance in a number of ways. Click to learn more about what they offer, please visit their website.
Canadian Youth Business Foundation
The Canadian Youth Business Foundation (CYBF) is a national charity providing pre-launch coaching, business resources, start-up financing and mentoring to help you start your own successful business.
CYBF supports businesses of all kinds – skilled trades, technology, retail, services, and everything in between. CYBF lends young entrepreneurs (18-34) up to $15,000 for their start-up. Additional financing may be available through CYBF’s partnership with the Business Development Bank of Canada (BDC), where you can get up to an additional $30,000. Existing CYBF applicants may also qualify for expansion funding up to $10,000.
If you have any questions or would like more information, please visit the Canadian Youth Business Foundation website.
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