Early-stage manufacturing businesses are in constant need of investment to support their continued growth and success. Without a constant supply of funds to satisfy R&D and production, among other critical operations, food manufacturers run the risk of having a less profitable 2017 than otherwise possible.
Thankfully, Canadian government funding programs are available to assist business investments this year. There are several government grants and loans to support investments made by food manufacturers, though not all startups and early-stage businesses will qualify for the full range of programs available to mature, incorporated businesses.
The following guide will reveal opportunities to grow your food business in 2017. Consider leveraging these programs as part of an overall business funding strategy – when government grants and loans are planned well ahead of application, it’s easier to optimize funding and improve outcomes.
Why Use Government Grants for Food Manufacturing Projects?
As an early-stage food manufacturer, there are a number of reasons why it makes sense to use Canadian government funding programs in 2017:
- Expanded Project Scope: Projects that receive government funding are likely to become more advanced or thorough than non-funded projects. Grants may support the integration of highly-innovative equipment, which can help perform cutting-edge research and development and improve productivity.
- Accelerate Timelines: Being awarded with Canadian government funding can help manufacturers increase cash flow and make project down-payments faster. Through recurring payments, manufacturers can also access funds to support individual phases, or milestones of the project, to keep it moving through to completion.
- Improve Financial Return: Financial calculations such as project ROI and payback period are instantly improved with the successful application to a government funding program. In many cases, project expenses can be reduced by up to 50% – this greatly increases the benefits of the project while also reducing the investment’s risk.
Top Funding Programs for Ontario Food Manufacturers
There are several government agencies and organizations across Canada that are responsible for administering grants and loans. Although it’s possible to navigate this process independently, companies may also contact a Government Funding Planner™ to discuss eligibility for a range of grants and loans, including:
- Industrial Research Assistance Program (IRAP): Assists manufacturers to overcome technical challenges by reducing the payroll cost of employees and contractors. IRAP grants support commercially-viable research and development activities that lead to new manufacturing products and capabilities.
- CanExport: Encourages the entry or re-entry into international markets by offsetting a portion of marketing costs related to countries where revenues haven’t been recorded in at least 24 months. This includes participation in trade shows, translating marketing materials, performing market research, and airfare/ ground transportation. Up to 50% of eligible expenses can be awarded to a maximum $99,999 per project. Applications must show at least $20,000 in expenses to be eligible.
- Canada-Ontario Job Grant: Encourages the upskilling of employees through third-party training programs. Manufacturers can implement a variety of skills-based training programs for their team to ensure their workforce has the skills needed to keep up with market demand. Employers may receive up to 66-83% of training costs to a maximum $10,000 per trainee, and are eligible to apply each 6 months.
- NSERC Engage: Supports short-term industry-academic research partnerships in collaboration with Canadian colleges or universities. Early-stage food businesses can leverage academics and laboratory space to provide research, test, and verify products. Manufacturers may be able to receive up to $25,000 for projects lasting up to 6 months; longer projects may require NSERC CRD funding instead.
Register for a Canadian Small Business Funding Webinar
Ready to get the inside scoop about these Canadian government funding programs? Food manufacturers are invited to join a free, informative webinar about common projects eligible to receive funding. Register for a webinar today to continue learning about how to begin using government grants and loans for your upcoming projects.
By building a Proactive Funding Plan™ that’s based on your business’ to strategic priorities, we will maximize your cash flow planning to help fund your business expansion efforts, new technology/equipment, hiring, training, and research & development activities. Mentor Works’ turnkey approach includes matching funding with each client’s unique priorities, while streamlining the application process and keeping our clients up-to-date on all funding news and announcements so they never miss out on a funding opportunity.
Mentor Works offers also offers free educational resources for businesses, including Downloadable Funding Resources, Funding Webinars & Workshops, a Daily Funding Blog, a Weekly Funding Newsletter, and a List of Top Funding Programs.
Connect with Mentor Works today at 1-888-599-3111 or their Contact Form to learn more about your funding options.
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