When it comes to supporting businesses in Canada, both levels of government will often provide different types of support. One of these may be by way of grants.
The Canadian Banks
Usually, when a company needs money, they will first try the resources they are most familiar with. For example, a company may go to their local bank and apply for a business loan to help them with their cash flow. It could cover the wages of their employees until they can work off of their receivables. Some businesses have a very small payroll. Instead of using a formal payment process, they may use interac as a payment method if they only have one or two employees.
Once a company has the necessary funds to cover the payroll, then they are more confident in being able to hire the staff they need. There are different hiring resources which they can tap into for this. The internet is one resource, and job fairs is another.
Applying for a Hiring Grant
There are many different provinces in Canada. Each region will have its own ways of supporting small businesses. The provincial governments will develop incentives, and among these, may be some grants to help the company with their payroll needs. Some examples are on the Federal Level.
- The Canadian government encourages the hiring of summer students. One particular grant to help with this is under the Canada Summer Jobs Program. Businesses who hire workers between the ages of fifteen and thirty will receive up to 50% coverage of wages from the Federal government. If the business is a nonprofit organization, the Federal government will cover up to 100% of the salaries.
- Youth Employment Program (IRAP)
Businesses which qualify, can hire up to two post-secondary graduates and receive up to $30000 for each graduate to help cover their wages. This can be for a period of six to twelve months. The graduates can be hired to work in areas such as business development, technical and customer service or administration.
Sometimes the provincial government will focus on a specific industry to assist with hiring grants. For example, there is the Ontario Exporters Fund. Up to $80000 from this funding can be used by small and medium businesses in the export industry. The funding is to be used to hire a dedicated export manager for the business to whom the grant is being given.
The critical thing to remember is that hiring grants are changing all the time. Most are only available for a short period. Then, they only cover the wages or a portion of the wages for a specified period. These grants are given in the hopes that the companies which use them, will continue to keep the employees hired on staff, even after the grant funds are depleted. The grants are meant to help a business hire the right employees so their companies can grow.
In many cases, the various grants are successful at helping a business get the help they need before they can really afford it. At the same time, it opens doors of employment for individuals who are having difficulty finding work.
Often, organizations will put off applying for grants because there is so much paperwork involved. However, it is well worth the effort if the organization is successful at getting the grant.