Entrepreneurs running small businesses or startups need a substantial amount of funding for research and development to further progress towards their goals. Rather than match one particular project to a government fund, the practice of stacking these grants can help you offset more money off of eligible project expenses. This can be done by utilizing several federal and provincial programs such as R&D funds in BC or software grants in BC.
We will go over grant stocking in Canada and the factors to consider should you take advantage of it for your company. You owe it to yourself to see your business thrive in an ever-changing economic climate.
Can You Stack Grants in Canada?
Stacking grants are permitted in Canada for many ventures, but there are some strict rules to follow to avoid application rejection due to the government wanting to provide financial support for as many companies and projects as possible.
First, stacking can be allowed for only one federal and one provincial program to be applied towards the same project activities. You will not be able to stack two of each unless your projects are categorized into sub-projects or different phases, with a particular focus on separate activities and expenses.
Second, pay attention to the rules of the funding programs you apply for. They often dictate a maximum allowable government funding contribution of around 75% for total project expenses. Businesses should plan ahead for receiving that amount since the stacked grants of two programs may exceed the maximum allowed. You will have a better chance of application approval when you request less than the maximum contributions, so be sure to structure the grants and loans into your stacking strategy.
Before applying to each government funding source, take time to understand the parameters of the program you are interested in applying for. Stacking limits and regulations can change for different programs, so consider the timing of your application as well. Most funding programs will have clear guidelines on grant stacking for you to thoroughly review; this will help you navigate each application process to navigate more efficiently.
What Are Some Factors to Consider When Stacking Grants?
We have already gone over some of the rules to consider before stacking grants, but there are some other factors to consider as well. Regardless of your process, you and your team should always take a proactive stacking approach, strong project management, and funding expertise to take advantage of more financial help. It takes a lot of work, but the benefits will be extremely helpful. Stacking federal and provincial funding ultimately helps companies gain a competitive advantage in both local and global markets. and receive support for a wider range of activities.
It is also important to consider what you will be doing with the stacked grants and how the funding will be distributed throughout your business. For example, you could hire and train both new and existing employees for your company by stacking hiring and training grants. If your business or project is focused on research and development, you could put that funding towards basic research, prototyping, and commercialization planning.
Other ventures you can invest with the grant can include capital and technology investment solutions and business expansion into other global markets. More specifically on the latter, you can use the stacked government funding to support the costs of extensive international expansion projects.
Set your business up for success going into 2022!
While stacking government grants can be helpful for your business, it does bring into question whether or not you are allowed to apply for other funding programs within BC.
Because of rigorous regulation and documentation, we recommend working with our team of experts instead of doing it all by yourself. We will help you secure the much-needed funding you need for your business or upcoming project.
Work with a professional consultant today by calling us at (604)-259-9937 or contact us HERE for more information.