For Canadian companies, establishing eligibility is a key step in their journey to successfully applying for government funding. Although there are many variables that need to be considered by companies that want to apply for grants and loans, your business’s financial performance is a common eligibility criteria.
This eligibility criteria asks the question, “Is my business financially capable of carrying out the project for which I’m applying for funding?”
These questions can not be answered with a simple “yes” or “no” because the world of government funding is complex and changes often. However, this article will address some considerations that you should be aware of when it comes to government funding, your business’s financial standing, and developing a cohesive business plan.
The Importance of Having an Established Annual Income
Government funding bodies often require that applicants for grants and loans are incorporated organizations, as well as have at least three years of positive annual income that they can demonstrate upon request.
These eligibility criteria are commonly requested because it increases the applicant’s credibility and proves that the applicant is capable of leveraging capital in a positive and efficient manner that will contribute meaningfully to the Canadian economy.
Keep in mind that organizations that receive government funding are typically operating in the “golden zone” when it comes to the key eligibility criteria required by most government funding bodies.
Establishing a Business Plan for Government Funding
Often, businesses looking for government funding opportunities (especially start-ups or small businesses) will ask how important it is that they have a business plan.
Firstly, what is a business plan? [Insert Definition of a business plan]
Most government funding programs are developed because the organization or government body that administers the grant, loan, or tax credit, are looking to stimulate a desired business activity.
For example, the Canadian Food Innovation Network (CFIN) may have the goal of encouraging food and beverage companies in Canada to convert their packaging to more environmentally friendly alternatives. They will do this by allocating funds to successful applicants in the form of a grant. In turn, applicants are required to adhere to eligibility criteria to successfully apply for the grant and receive funding. Often, the programs’ eligibility criteria includes a request for evidence of a planned project that aligns with the goals of this grant and a plan of execution to assure the delegating body that granted funds will be put to good use. Fulfilling these requirements is significantly easier when businesses have clear and concise business plans that outline your organizations financial standing, project goals, and how those goals will be achieved by outlining an actionable path forward.
Reporting
Not only is it often crucial that businesses have a detailed outline of the projects they wish to complete and a roadmap for how they will achieve them, but often it is required that these businesses to report on their progress towards project goals. Reporting to the organization that has distributed your grant or loan is a means of ensuring that your organization is on track and properly investing the money that it has received. Reports can be required at different time periods which depend heavily on the size of project and time to completion.
Learn More About Government Funding Criteria
If your business interested in learning more about government funding and eligibility criteria, please visit our government funding FAQ page where we answer the most common questions businesses have when it comes to funding.
You may also be interested in downloading one of our free white papers or slide decks that cover a variety of topics to learn how to position your business for a successful future with grants, loans, and tax credits.
Mentor Works, A Ryan Company is dedicated to streamlining the funding and grant application process for your business.