Canadian Sources of Funding (Government Financing) 2006 For Young Entrepreneurs in IT
Being a young entrepreneur in Western Canada can be tough, especially if the young entrepreneur has dependents, is already operating a business, and is looking for support. But if you're hiring, there are lots of subsidies, and if you've been unemployed (and here's the big catch: and you must have been eligible for benefits), there are lots of subsidies, and if you export, then EDC's got you covered. Otherwise, there are potentially some commercial routes through BDC and others, subject to their final approval, of course.
Self-Employment Program - Be Your Own Boss
Unfortunately, this is only for people who are unemployed or who were recently unemployed. For young people who went into business fresh out of school this may not be an option, especially as they may not have been eligible for any unemployment benefits. In addition, this program is for new businesses only. One might envision getting around this "new business" provision by starting a new enterprise, but only if the young Canadian entrepreneur is eligible for unemployment insurance benefits, which is often not the case.
Aboriginal Business Canada
This is a useful program for Aboriginals - but unless you are an Aboriginal, or are willing to give away majority shares to an Aboriginal person, this program is for the most part, completely unaccessible.
Advice and Business Loans for Entrepreneurs with Disabilities (ABLED) Entrepreneurs with Disabilities Program
Break a leg, will ya? If a self-declared disability impedes you in one or more vital business tasks, then up to $125,000 might be available to you. Unfortunately, the broken leg is not a permanent disability - the disability must be permanent, so go crazy or something if you're in good shape and just want the money.
Canada Small Business Financing (CSBF) Program
This one's great - if you need some very expensive tangible property, like a tank or a house, then these guys are willing to throw $250,000 at you. One catch: what will most businesses do with such a big tangible asset? This loan seems to make more sense for the construction industry than for the IT industry, unless we're talking about buying a big super computer or something, and even then, there are much better arrangements. The only way to get at this money is to buy something big and rent it out to some company that could have bought it themselves. Probably not a winning proposal.
Community Futures Program (CFDC Loan Program)
This could work, unless you're already in business and already have clients in some rural area. In which case, you're stuck, and simply cannot go to the Okanagan or other nice rural area. But if you could, it would be worth up to $250,000 to you. That's a pretty sweet deal.
BDC: Co-Vision: Start-up Financing Program
If your business is in its first 12 months, and has a business plan, then try calling BDC. Lots of financing may await.
Ministry of Agriculture, Fisheries & Food - Financial Programs
These ones are a great source of financing... if you're willing to put farming or fishing into your list of activities that you do on a regular basis in your IT business.
Self-Reliance Loan Program - VanCity
This is a beautiful extension of the Self-Employment Program. Get a job for a while, lose it, collect unemployment benefits, then go to SEEDS, and once you're done with SEEDS then get a referral from Western Economic Diversifications, and VanCity will continue to provide financing.
Women's Enterprise Center - WEC
If you're female and own a company, then you've had it tough and this program will provide some financing to help you out.
BDC: Innovation Financing
This is one of the best bets for a young entrepreneur with an existing business. This is for existing businesses, and you do not have to have any special handicaps. Come up with a good project, pitch it properly, and maybe receive financing up to $250,000
BDC: Term Loans
Another great option. IF the business is approved for the term loan. Have a great business plan, supported by research and commitment.
Equity Capital Program - Investment Capital Programs
Now we're talking. This gets the young Canadian entrepreneur together with Venture Capital Corporations, which potentially means he/she can obtain both funding and mentorship. There are also opportunities to speak with Angel investors. That's what young entrepreneurs need most: Angels.
Employment Youth Corps
Access subsidized Canadian labour. Using said subsidized Canadian labour, claim to be employing Canadians, and become eligible for funding that requires that you spend 75% of your labour costs on Canadian labour.
Opportunities Fund for Persons with Disabilities
More subsidized Canadian labour. If you're hiring for IT-related positions, or administrative roles, most disabilities pose no problems whatsoever, but still go for the subsidy, and then become eligible for funding that has the 75% Canadian content requirements.
NRCan Science and Technology Internship Program
More subsidized Canadian labour. $1000/month for 12 months. Almost any young potential employee would qualify for this.
Summer Work Experience Program
More subsidized Canadian labour.
Targeted Wage Subsidy Program
More subsidized Canadian labour. Employ the previously unemployed, or more specifically, those who have been receiving benefits, and then get up to 78 weeks of subsidies, and then fire them and start over (not allowed to say that part, though, right?).
Young Canada Works
Money for employing young people. I.e. More subsidized Canadian labour.
Export Development Canada
If you're in IT these days, in Canada, you're probably importing. But if you've got intellectual property and/or rich international clients, then EDC has several products and services, including:
- Risk Management
- Working Capital
- Account Receivables Insurance
- Buyer Financing
- Bonding and Guarantees.
But young entrepreneurs in Canadian IT are definitely left wondering if there's an IDC (Import Development Canada).
NORTHSTAR Trade Finance Inc.
A company that will give your foreign buyers credit, potentially. Which might help you to clinch profitable deals.
