Introduction
Sources of funding are places where individuals can obtain funds to start new enterprises or expand and improve their existing enterprises. These are enterprises that are privately owned by one individual or groups of individuals. Small businesses in Canada form a significant part of the country’s economic development and many firms have recognized the importance of providing funds to individuals and groups of individuals so that they can start or improve their enterprise. Several financing programs in Canada help citizens to access funds to run enterprises. The grants range from non-repayable to repayable funds depending on the firm that accepts an individual’s proposal and the type of enterprise. The Canadian Small Business Financing (CSBF) is one of the financing programs that have assisted many entrepreneurs and owners of small and middle-size enterprises to access funds. There are certain groups of people who are eligible to access funds and these are the only ones that can be financed by any financing program.
The Canadian Small Business Financing and Enterprises
The Canadian Small Business Financing encourages financial institutions to make their funds available to entrepreneurs. The funds can be accessed by individuals or groups of individuals who come up with new ideas that can help in development. Other individuals or groups of individuals who can access the funds are those who own small or medium-sized businesses. The businesses must also be privately owned by one or a few individuals. Small and medium-sized enterprises that are not owned by private individuals cannot receive the funds. Also, large enterprises whether privately or not publicly owned cannot access the funds. Those who have plans to access the funds do not apply directly to the Canadian Small Business Financing but apply to the financial institutions where they would like to access the funds.
The Canadian Small Business Financing and Applicants
When it comes to applying for the loans, any enterprise that feels like it has the qualifications to receive the funds can apply. Individuals who have some new ideas and lack funds to implement their ideas are supposed to apply for the loan. Small and medium-sized businesses that need the funds are also allowed to apply for the loan. Those small and medium-size enterprises are the only ones that can apply for the loan. If large organizations apply for a loan, they will just be wasting their money because they cannot be considered by the financial institutions. Enterprises that are not privately owned whether small, medium, or large, cannot apply for the loan and if they do, they will not be considered.
Eligible Enterprises
Eligible firms are those firms that apply for the loan and are qualified to receive it. For an enterprise to be eligible it must be small or medium-sized and privately owned. In addition, the firm must prove that it requires the money and that the money will be invested in the enterprise for improvement and modernization of the enterprise. Individuals who have new ideas and want to explore them are also eligible. These entrepreneurs must come up with a business plan that convinces the financial institution that the idea is effective and will lead to development. Small and medium enterprises that apply but do not prove their need for the money are not eligible to receive the funds. Entrepreneurs who cannot prove that their idea is new and would lead to development are also not eligible for the funds.
Atlantic Canada Opportunities Agency (ACOA)
ACOA is a business development program that is designed to help individuals start up new enterprises or expand and modernize an already existing enterprise. Its main focus is on small and middle-sized enterprises where it provides funds to these enterprises. The capital that is provided could interest-free, unsecured, or repayable. In addition to funding, the program stimulates development of emerging technologies and creates a conducive environment for the growth of businesses in Atlantic Canada.
Those that can be Financed
The enterprises that can be financed by Atlantic Canada Opportunities Agency include both commercial and not-for-profit enterprises. Plans to bid for public and private procurement are also financed. New ideas that can be used to develop an innovative product or service are financed. The only projects that cannot be financed include services of personal or social nature, government services, real estate, and retail or wholesale businesses.
Application of the Finances
The business sectors that can apply are the commercial and not-for-profit businesses. The businesses must be small or medium-sized. Individuals and enterprises that have plans to acquire private and public procurement contracts can also apply for the funds. In addition, individuals who have come up with new ideas that can be used for the development of an innovative product or service can apply for the funds. Individuals running retail or wholesale enterprises cannot apply for the funds. Some of the business sectors that cannot apply for the funds include real estate, government services, and services of personal or social nature.
Eligible Candidates for ACOA funds
Eligible candidates include commercial and not-for-profit enterprises. Others include individuals with plans to bid for private and public procurement contracts and those with new ideas that can be used for the development of innovative products and services are also eligible. However, the enterprise or individual must convince ACOA that the plan at hand will provide economic benefit to a given area or a community. The enterprise or entrepreneur must prove that there is a great need for the funds. The idea or plan by any entrepreneur must be economically viable for an individual to be eligible to receive the funds. Individuals and entrepreneurs whose plans and ideas do not provide economic benefit to a community, do not demonstrate need for finances, and are not economically viable are not eligible for the funds. Individuals running retail or wholesale enterprises, services of personal or social nature, government services, and real estate are also not eligible for the funds.
Conclusion
Canada has been at the forefront in funding small and medium-sized enterprises that form a significant part of the country’s economic development. Individuals who come up with new ideas that can be used for the development of innovative products and services are also funded. There are many funding programs in Canada and Canadian Small Business Financing is one of these programs. The program funds innovators and small and medium-sized enterprises that are privately owned. Atlantic Canada Opportunities Agencies is another business development program that funds commercial and not-for-profit enterprises. It also funds innovators and those who wish to bid for private and public procurement contracts.