Financial incentives from the government

Tap into the government programs for businesses for tax breaks, wage subsidies or loan guarantees.

There’s government money available for your growing business. Why not take it?

Governments at all levels want your business to succeed, so they create programs to supply tax breaks, wage subsidies or loan guarantees. This article covers some of the more popular forms of business-boosting government assistance.

It can take a little digging, but chances are your business may be eligible for some form of financial support from government.

Federal, provincial and municipal governments collectively offer billions of dollars in financial incentives to small businesses in the form of grants, subsidies, loan guarantees, tax deductions and tax credits.

With a little research, you may find your business qualifies for one or more of these incentives, so check them out.

  1. Grants and contributions.

    These funds are intended for certain business activities, taking place in a very specific industry sector or involving a specific demographic group.

    For example, under the Canada Book Fund, you may qualify for a financial contribution if your business is in the business of producing, marketing and distributing books by Canadian authors.

  2. Loan guarantees

    The Canada Small Business Financing Program is a loan loss-sharing program between the federal government and private sector lenders. It helps gain access to affordable asset-based financing for small and medium-sized businesses.

    The program provides access to loan financing of up to $500,000 for the establishment, expansion and improvement of small businesses. Financing is available up to $350,000 for leasehold improvements, equipment – and up to $500,000 for real property.

  3. Wage subsidies

    You may be able to recoup part of your employee wage costs if the people you hire are eligible under the guidelines set by current government programs.

  4. Tax refunds and credits

    Speak to a qualified tax specialist about business expenses that may be eligible under the Scientific Research and Experimental Development Tax Incentive Program (SRED). Your business could be eligible for a tax refund or tax credit amounting to 35 percent.

Find more information about these programs and incentives at the Government of Canada’s main business portal, called the Canada Business Network.

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