What to Expect With Grants During an Election (And How Small Biz Owners Can Still Win)

If you’re a small business owner vibing on growth and riding that entrepreneurial wave, election season might feel like your grant strategy just hit pause. But don’t stress, here’s the real talk on what happens to government grants during a federal election and how you can keep your funding game strong (and stress-free).

First things first: Do grants just…stop?

Nope. Contrary to the myth, most federal government funding programs don’t shut down during elections. In fact, they continue accepting applications, but here’s the kicker: decision-making hits a bit of a slow-mo mode.

Why? Because during the caretaker period (a fancy way of saying “when Parliament is dissolved and we’re in election limbo”), federal departments can’t make major funding announcements that might sway voters. You’ll probably see delays of several weeks until the new cabinet is formed.

Pro Tip: Patience is your best friend here. If you’ve already applied for a grant, sit tight, it’s likely in the queue.

The Language Around Grants Gets…Neutral

Expect a shift in how government announcements are worded. During an election, you might notice press releases becoming more “vanilla”, with less emphasis on specific demographics like women entrepreneurs, BIPOC founders, rural businesses, or persons with disabilities.

Why? Again, it’s all about not appearing to campaign with public dollars.

Provincial Grants? Still Business As Usual

Here’s the good news: provincial funding keeps chugging along. So if you’re eyeing programs funded strictly by your province (BC Innovates, Alberta Innovates, etc.), it’s business as usual.  BUT if it’s a joint federal-provincial grant, and the federal portion isn’t signed off yet? That one might be put on ice until post-election.

Check your program’s funding source! Transparency is key; many programs disclose their budget origin on their official page.

What About Other Funding (Like Banks & Corporate Grants)?

Breathe easy, bank, credit union, and corporate grants aren’t federally funded, so they keep rolling no matter what political situation unfolds in Ottawa. Private funding is still a go!

How to Stay Grant-Ready While Politicians Battle It Out

Smart small business owners don’t wait around; they prep.

Here’s your glow-up strategy:

Use grant tracking platforms like Granted Starter. It’s like your digital assistant for staying on top of new grant launches, including those that sneak through just before the election gets announced.

Sign up for industry newsletters. Parties often favour specific sectors (like cleantech, agri-food, or digital innovation), and their pre-election whispers give you hints about what’s to come.

What Does This Mean for Your Small Biz?

If you’re a small business owner planning to apply for grants, now’s the time to prepare financially. Focus on areas like clean energy, infrastructure, and workforce development. Update your financials, outline any hiring or equipment needs, and explore ways your business can align with climate-friendly or digital innovation goals. Get set up to track relevant grants and funding announcements, especially for green retrofits, digital upgrades, or skilled trades support.

The federal election and the newly announced party mandates can significantly shape the grant landscape for small businesses in Canada, depending on which party forms the next government.  Here’s why this matters:

Liberal Party (Mark Carney)

The Liberals propose a comprehensive investment plan totalling C$130 billion, targeting key sectors to stimulate economic growth and support small businesses:

• Construction & Infrastructure: C$30 billion allocated to accelerate housing development, public transit, and green retrofits. This investment aims to create opportunities for small contractors, suppliers, and service providers involved in infrastructure projects.
  
• Housing & Affordability: C$25 billion dedicated to building affordable and non-profit housing. Small businesses in construction, real estate, and related services may benefit from increased demand and potential grant programs supporting affordable housing initiatives.
  
• Clean Energy & Climate Action: C$20 billion earmarked for green technology and climate resilience projects. Small enterprises in renewable energy, energy efficiency, and environmental services could access grants and contracts under this initiative.
  
• Digital & Tech Innovation: C$10 billion invested in enhancing AI, cybersecurity, and digital tools. Tech startups and small IT firms may find new grant opportunities and partnerships from this focus.

Impact on Small Businesses: The Liberal platform emphasises support for small businesses through tax reductions, digital adoption programs, and increased access to financing. Entrepreneurs should prepare by aligning their business strategies with these sectors and staying informed about upcoming grant opportunities.

Conservative Party (Pierre Poilievre)

The Conservatives focus on fostering a pro-business environment through tax reforms and deregulation:

• Energy & Natural Resources: Plan to fast-track approvals for 10 natural resource projects and establish a national energy corridor. Small businesses in the energy sector may benefit from streamlined regulations and increased project opportunities. 
• Housing: Intend to eliminate federal sales tax on new homes under C$1.3 million and incentivize municipalities to reduce building taxes. This could stimulate the housing market, benefiting small construction firms and related industries. 
• Regulatory Reduction: Aim to reduce bureaucratic red tape by 25% over two years, easing the regulatory burden on businesses. This could simplify the process for small businesses to access funding and comply with regulations.

Impact on Small Businesses: The Conservative platform’s emphasis on tax relief and deregulation may enhance the financial capacity of small businesses, enabling them to invest in growth and innovation. Companies should monitor policy changes to leverage new opportunities.

New Democratic Party (Jagmeet Singh)

The NDP’s platform centres on supporting local economies and promoting sustainable development:

• Healthcare & Social Services: Aim to expand public healthcare and social services, potentially creating opportunities for small businesses in these sectors to provide goods and services.
  
• Manufacturing & Innovation: Propose extending the Accelerated Capital Cost Allowance and introducing an Innovation Tax Credit to encourage investments in machinery and R&D. Small manufacturers and tech firms could benefit from these incentives.
  
• Green Economy: Focus on transitioning to a low-carbon economy, which may involve grants and support for businesses adopting sustainable practices.
  

Impact on Small Businesses: The NDP’s policies may offer targeted support for small businesses engaged in manufacturing, green technologies, and social services. Entrepreneurs should align their operations with these priorities to access potential funding.

Preparing for Grant Opportunities:

• Stay Informed: Regularly check government websites and trusted platforms like Granted Starter for updates on grant programs and eligibility criteria.
  
• Align Business Strategies: Tailor your business plans to align with the sectors the ruling party prioritises to increase the likelihood of securing funding.
  
• Maintain Compliance: Ensure your business meets all regulatory requirements and maintains accurate financial records to facilitate the grant application.

By proactively aligning with government priorities and staying informed about available programs, small businesses can position themselves to take full advantage of grant opportunities in Canada’s evolving economic landscape.

Final Tip for Small Business Owners

Whichever party wins, grant programs will shift, some will pause, others will evolve, and new ones will launch. Be ready by:

• Keeping your key documents (business plans, financials, pitch decks) grant-ready.
  
• Signing up for real-time updates via platforms like Granted Starter.
  
• Aligning your business strategy with platform promises that match your industry.
  

Think of this election as a grant strategy reset button. Stay nimble, stay plugged in.