5 min read
Are you thinking about applying for government funding? Before you hit send, take a moment to assess your readiness. Strong applications are built on clear goals, measurable outcomes, and alignment with a program’s objectives.
Here are a few practical tips from our in-house experts to help you sharpen your approach and put your strongest application forward.
1. Make sure it fits your strategy
Before investing time in an application, ask yourself:
- Is this project already part of our 12–24 month growth plan?
- Would we move forward with this initiative even without funding?
- Do we have the internal capacity to deliver and report on this project?
- Are we applying because it fits, or because it’s available?
Government funding works best when it reinforces planned initiatives like hiring, innovation, exporting, or digital adoption. Applying simply because funding exists may lead to misalignment with your business strategy.
Expert Tip: Timing is a critical part of strategy. Keep in mind that application processing times will vary. Some programs may take weeks, and others may take months. If your project requires an immediate start but the funding decision is months away, the program may not be the right fit.
2. Read the fine print
It’s tempting to think that applying for more programs increases your odds. But it pays to research which one program you really qualify for. Here’s our formula for success:
- Get a personalized list of the government support available for your business on Business Benefits Finder. The more specific you can be about your needs, the more targeted your results will be.
- Read the program guidelines, especially the eligible expenses and limits. Many applications are rejected because the company or the project expenses aren’t eligible.
- Do your research. Companies that receive money from government are reported publicly, so you can find out which companies got funded and what their project was about, in brief.
- Still have questions? Try calling one of the program officers.
Expert Tip: Look for the program’s intended Return on Investment (ROI). Whether the goal is job creation, new patents, or increased revenue, government funding is typically tied to a specific objective. You will find these details in the program guidelines, so don’t skip them! To strengthen your application, make sure to clearly state how your project will support the program’s specific ROI.
3. Make your life easier
Most applications ask for the same information in slightly different ways, so you can save yourself a lot of time by having all this information prepped in advance:
For example, some of the common questions a program might ask about your company, include:
- A description of your business
- The number of employees you have
- Your past three years of financial statements
- Your incorporation documents
And if you’re funding request is for a project, they’ll likely also ask for:
- A description of your project
- A detailed breakdown of your expenses
- Any risks associated with your project
- The economic benefits it will provide for Canada
Expert Tip: A content repository can streamline future applications, but be careful not to copy and paste without updating your information. Each program evaluates projects through a different lens. An innovation grant may focus on technical development and IP strategy, while an export program may prioritize scalability and international market traction. Your repository gets you 80% of the way there; tailor the final 20% to the specific program’s priorities.
4. Know the true cost of the money
Businesses are sometimes caught off guard by the amount of work that goes into reporting requirements for government funding. Since money is typically reimbursed through claims on a monthly or quarterly basis, you have to factor that reporting work into your cost benefit analysis. Annual reporting also goes on for several years after a project is completed.
Government funding is a great source of patient capital, but it also comes at a different cost than funding from venture capitalists or financial institutions. Applicants don’t always realize the restrictions government funding programs might have on their IP, ability to secure other investments, or sell their company outside of Canada. So, if you have other investors, make sure they are on board with any possible restrictions.
Expert Tip: Reporting often requires more than just reimbursement claims. This is where the program tracks if their funding is leading toward new jobs, innovation, or other intended impacts. Be sure you understand the metrics you'll be expected to track over time. As a bonus, hitting these goals can lead to free publicity as a highlighted success story!
5. Prepare to take on some of the risk
Government funding is designed to share risk, not absorb it entirely. Government(s) want to know that you have what it takes to see your project through. And many programs expect you to contribute at least 50% towards the project and may typically only award 20 to 30% of the eligible costs. You can always reach out and ask the program team how much they usually consider funding. And know that asking for 100% of the costs is usually a non-starter.
So, try to get as much of your funding secured or sourced as possible before seeking government investment. And include these contacts in your application. That way, you can demonstrate how you’ve already managed to guarantee other sources of legitimate funding and that could very well increase the program’s confidence in your proposal.
Expert Tip: Some funding programs are over-subscribed. One of the most effective ways to stand out in a competitive pool is to demonstrate that your project is ready to begin by showing that your portion of the funding is already secured.
6. Avoid the marketing language
Canadian taxpayers are the real funders of your project, so government(s) have to be responsible and accountable. To help a program officer see the value of investing in your project, explain your project in a way that makes it easy for someone who isn’t familiar with your industry, product, or service to understand it and explain to others.
Your application will attract a lot of attention if you include realistic metrics that show how your project will specifically benefit Canada and the economy, and show your idea is viable and will work.
Expert Tip: Answer the questions directly. It sounds obvious, but after spending a few hours writing, it can be easy to drift into describing what a product does and forget to explain how it meets the program's specific criteria. Always have a peer proofread your draft to confirm every question has been addressed clearly.
7. Less is more
Program officers have a responsibility to keep a level playing field among applicants. Meaning you're limited to providing only the information they ask for, that way they're able to evaluate each applicant on the same merit and criteria. That said, if you have something that really demonstrates how you are delivering benefits to Canada, mentioning ‘available upon request’ doesn’t hurt.