Consulting

Government Assistance – Myth or Reality?

Most of you may already be aware of companies receiving government assistance in various forms. In fact, there are currently more than 900 provincial and federal assistance programs in existence in Canada, and the annual expenditure on these programs to assist industry, business and economic development is estimated to be in excess of $113 billion. The assistance programs encompass grants, loans, loan guarantees, subsidies, income tax incentives, equity participation, technical and research consulting.

While some owner-managers might know there are financial programs geared specifically to smaller companies, they really are not sure whether the phenomenon of government assistance is a myth or reality.

Are you aware that:

• Governments will subsidize your travel expenses for promoting sales of domestically manufactured goods outside the country?
• Applying for government assistance is often no more complicated than asking your banker for a loan or a line of credit?
• You can get some large grant applications moving with as little effort as a phone call?
• Your term financing requirements can be government guaranteed?
• Some of your major competitors may be receiving government assistance?

Governments have come to realize "small is beautiful" and that only by nurturing the multitude of small companies in Canada will we survive economically. That is why they have created government assistance programs, and if you are a manufacturer or processor, 90% of these programs apply to you.

Whether your business is new or existing, a "Business Plan" should be prepared and included with your application for government assistance. The business plan is a comprehensive document, which clearly describes your company's past, present and future activities. In the process of preparing your business plan, you will learn how to work on your business rather than in your business.

Begin by asking yourself some of these questions:

• Are you planning to invest capital in new facilities, expansion or modernization, or in new machinery or equipment?
• Are you thinking about improving your production capacity?
• Are you going to start exporting or do you plan to expand your export market?
• Do you want to take part in an exhibition or trade fair?
• Are you planning to develop a new product or process?
• Will you be hiring additional permanent staff?
• Will you be training new employees to add new skills?
• Do you need working capital for your envisioned expansion or growth?
• Do you need advice in areas such as production or marketing?

If you answered yes to any of these questions, you may qualify for some sort of government assistance, and the professionals at Fuller Landau LLP can help facilitate the process.