Small Business Financing Secrets

If your business is not tied to a local market or a specific geographical location, you might consider making a move for the better, says James Byrne, Director of the Small Business Consumer Centre. "Some provinces offer greater odds for government financing in the form of grants and loans," says Byrne. "And these provinces have also been known to offer incentives to companies to relocate in order to bring jobs to certain regions."

When a Winnipeg factory owner traveled recently to Toronto to drum up some venture capital to start a facility there, he had a tough time getting attention. But then New Brunswick beckoned with an offer he couldn't refuse. The province ponied up a forgivable loan, while the federal government provided a repayable contribution and covered the cost of a lease. The value of the deal? Nearly $3 million.

"The federal and provincial governments identify regions that need job stimulation, and they're willing to invest heavily in those areas," says Byrne. "If you're in a position to make the move, you could be wooed financially."

He advises that you should expect the process to take longer than it would with a straightforward grant or loan, and that you should be prepared to provide some guarantees of your own, such as the number of employees you'll hire within a certain period.

"There's another advantage to considering a move," says Byrne. "If you're an employer and your regional government knows you're thinking of pulling up stakes, they might just come up with some incentives of their own to get you to stay."