Heather asked:

I am looking at starting a small business out of my home. The business is Daycare. Is there any grants or financing that will help with this type of small business?

Julie King answered:

Financing a new business can be quite challenging. However, there is a government sponsored loan program that may be perfect for your situation, the Canada Small Business Financing (CSBF) Program.

The CSBF encourages financial institutions to lend money to small businesses. Under the program, you apply for a loan or lease at a financial institution or leasing company. If your loan is the application is granted, the federal government will guarantee 85% of the lender's potential losses (even in the case of a default on the loan).

Generally speaking, this program can be used to cover up to 90% of the cost of leasehold improvements or the purchase of equipment, which is why I think it might be very useful in your situation. You can visit this page to see specific details:
http://strategis.ic.gc.ca/epic/internet/incsbfp-pfpec.nsf/en/la01215e.html

Contact a financial institution to learn more about how you would make an application under this program.

If that doesn't work for you, you may also want to look for community based micro-loan funds. A local business support centre should be able to help you find programs in your area.

Good luck,

Julie King

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