Business in Canada or how to collect up to $ 1 million of state support

Small and medium-sized business in Canada enjoys a variety of financial privileges. Do you want to know what kind of soft loans and grants the government provides to entrepreneurs? Let’s look at this issue with the example of the richest and most advanced province of Ontario.

In this article, you will learn how the authorities of Ontario support local companies with a variety of governmental tools.

Needless to say, Canada is a fertile country saturated with the spirit of change. New technologies are constantly being introduced here, free trade is being stimulated, and people’s living standards are rising.

In recent years, the Canadian economy, as they say, has reached its culmination moment. The fact is that toughening of the taxation policy in the USA has led to a massive outflow of capital from there to the Northern neighbor.

Its business Canada, on the contrary, is stimulating with a policy of active protectionism. After all, the constant struggle for business investment by global corporations dictates its own rules. The quality of life of the population continuously improves and it requires technological development in all areas. Today, technology must be clean, intelligent, and robotic.

The population of Canada is only a modest 0.5% of the total number of people on Earth. However, the country’s share in the global economy is 5% and continues to increase. Business immigration has traditionally helped reinforce this trend.

Promising industries

 

If you decide to open a business in Canada, you should certainly know which six sectors of the economy the state considers a priority. These include agribusiness, resources of the future, health and bioscience that have long been intertwined, as well as clean technologies, the digital industry, and advanced industry. It is these industries that have the highest priority when it comes to support of programs.

Ontario Medium and Small Business in Canada State Support Programs 
 

Northern Business Opportunity Program

This is a series of strategic initiatives aimed at the growth and stability of society, expansiveness, and global business investment.

Business  in Ontario gets help if it:

  • intends to expand by entering the Ontario market
  • Is already successfully operating in Ontario

Threads in the program:

 

  • Business Expansion Projects

 

Objectives:

  • improving competitiveness
  • increase in productivity
  • export
  • profit growth
  • job creation

Financing:

The amount of financing is up to $1 million. Typically, applicants receive business investment up to 50% of the total project cost. However, outstanding projects receive funds in any quantity, based on a real need.

 

  • Film and Television Industry Projects

 

Objectives:

  • creation of specialized jobs
  • increase in the number of quality products
  • industry development

Priority is given to:

  • theatrical feature films
  • movies for tv
  • serials

Financing:

The grant amounts to up to $ 500,000. A project can expect to receive the greater amount of money, the more funds will be spent in Ontario and the better job prospects it expects.

Northern Innovation Program

It is a program to support the development and commercialization of new technologies, promoting cooperation and partnerships between the private sector, academic institutions, and research institutes.

The work in Canada is organized in such a way that private individuals and science can freely interact, thanks to the help of the state.

Threads in the program:

 

  • Pilot Demonstration & Commercialization Projects

 

Objectives:

  • reduction of technical risks
  • reduction of financial risks

Risks should be associated with the scaling and demonstration of new and innovative technologies and their support at the stage of bringing to the level of commercial production.

The following sectors receive priority:

  • natural resources
  • advanced production
  • clean technology
  • medical sciences
  • bioeconomics
  • digital economy

Satisfying project costs:

  • direct domestic technical labor costs
  • construction or reconstruction costs directly related to the commercialization of a new technology
  • costs of the demonstration prototype (costs of engineering and design work, purchase of equipment, manufacturing, and installation)
  • material costs
  • product certification costs
  • research services provided by public sector partners
  • marketing costs (assistance in conducting exhibitions and the costs of developing marketing materials) are limited to 20% of all other eligible project costs

Financing:

Financial assistance covers up to 50% of costs. At the same time, the total amount of financing cannot be more than $ 500,000.

It should be borne in mind that the selection of projects for this program is quite severe.

 

  • Industrial Research Chairs

 

Objectives:

  • providing better research opportunities for new technologies
  • expanding research capacity at universities, colleges and research institutes in Ontario
  • continuous transformation of key economic sectors in order to retain highly qualified personnel for work in Canada

The following sectors receive priority:

  • natural resources
  • advanced production
  • clean technology
  • medical sciences
  • bioeconomics
  • digital economy

Financing:

Universities, colleges, and research institutes can apply. At the same time, what is important, these organizations should cooperate with the private sector. If you want to capitalize on research, you should also provide financial assistance to the project. And besides, you should have a reliable plan of how exactly you can apply the research results.

Northern Ontario Internship Program

This program finances the remuneration of graduates and young professionals who wish to leave for Canada. It helps launch a successful career in Ontario. For many people from all over the world, such support in immigration is crucial.

At the same time, company hiring specialists should:

  • function for longer than a year
  • have at least one full-time employee

Relevant sectors of the economy:

    • advanced production
    • agriculture, aquaculture and food processing
    • art, culture and creative industries
    • digital economy
    • forestry and forestry
    • medical sciences
    • mining industry
    • renewable energy
    • tourism
    • transport, aviation, and astronautics
    • water technology

The program provides in communities:

  • innovation
  • economic development
  • social development
  • capacity building

Financing:

Sponsoring often lasts for several years. Over the years, the specialist gains the minimum number of hours required for certification.

At the same time, the hiring organization gets compensation for up to 90% of the salary. The maximum amount is $31,500.

Support for the steel and aluminum sector

The state of Canada recently invested $100 million in small and medium-sized producers that consume steel and aluminum. Companies must make heavy use of steel and aluminum in their processes: their costs should be between 20% of total operating costs. At the same time, the current projects of companies should be quite innovative.

Objectives:

  • economic growth through the adoption of new technologies
  • increased employment of specialists in progressive projects

Additional support:

  • help companies with high growth potential to scale
  • commercialization of new technologies
  • company productivity improvement

Selection criteria:

  • suitable types of organizations: partnerships, social enterprises, incorporated companies, corporations or cooperatives
  • companies must have 10 to 499 full-time employees
  • organizations are required to demonstrate a realistic plan to enhance their competitiveness

Financing:

Irrevocable contributions from $150,000 to $1 million.

Access to capital for small and medium enterprises and social enterprises

Ontario’s local business investment funds fund businesses that are only planning to launch, expand, or need urgent stabilization.

A prerequisite is the creation and preservation of jobs.

Objectives:

  • assistance to organizations in cases when they lack funding from other sources
  • emergency support for companies at risk

Financing:

Refundable financing of $150,000 or more occurs on commercial terms in the form of loans, loan guarantees, or equity business investments.

Immigration for small and medium-sized businesses and interesting facts about public funding

Canada, as you know, is a northern country. Severe weather conditions and high transportation costs have formed a rather unique business climate in the country. The spirit of support is really pronounced here. It can be felt only by conducting economic activities. Over the years, our clients and we ourselves have come in contact with a considerable number of examples of such mutual assistance: yes, we wish you, too to enjoy the friendliness in Canada!

Immigration programs in Canada are complemented with both financial assistance programs and high-level business and legal advice. It is also an aid in the preparation of business plans (it’s especially relevant for those wishing to launch a startup in Canada, right!). Moreover: the government provides its own marketing research, conducts business registration, and even helps with taxation and accounting.

In Canada, the SME support infrastructure is the so-called Canadian Business network. This is a cooperation agreement between federal ministries and departments, provincial and territorial governments to promote the development and innovative activities of the SME.

The financial support of the entities is implemented for the following purposes:

  • startup startup
  • expansion of activities
  • know-how implementation
  • social entrepreneurship
  • youth entrepreneurship
  • charity
  • self-employment of persons with disabilities, etc.

The largest bank supporting technology and exports is the Canadian Business Development Bank.

Overall, in Ontario, the average annual interest rate on loans ranges from 3% to 5.3%.

Whether you want to open a business in Canada or you’re interested in buying a ready-made business, our specialists will certainly help you find the best program for immigration to Canada. At the same time, we will also comprehensively advise you on all the possibilities of financing at any stage of the development of your company. Contact us and get a consultation!