Government Funding Programs Around the World
The SBA loan program in the U.S. is run by an organization that collaborates with firms and money lenders to generate loans for businesses. It sets the rules and regulations through the terms of the lending organizations. It exists to provide an easier way of obtaining funds, and the interest rates and other fees are not too different from non-guaranteed loans.
Community Development Financial Institutions are private-sector financial institutions that focus on personal lending and business development in more impoverished suburbs. The United States Department of the Treasury provides funding for them, and other sources include high net-worth individuals, corporate firms and religious bodies. Their primary role is to meet the needs of working-class people in local communities marginalized by commercial banks.
In Canada, the Scientific Research and Experimental Development program is a generous incentive program that provides funds for small and large companies to conduct Research and Development in Canada. The tax incentives come in three forms: reducing taxes, an investment tax credit or a cash refund. It provides more than $3 billion in tax incentives to over 20,000 claimants each year. The Canada Small Business Financing Loan gives small business owners a chance to borrow up to $1,000,000 to purchase equipment, leasehold improvements and property. Futurpreneur Canada provides mentoring, financing and support tools to business owners aged 18-39, with a loan of $15,000 to start or buy a business, a solid business plan, and two years with a mentor; an extra $30,000 loan may be available through the Futurpreneur Canada-BDC Start-Up Program.
In Australia, the Entrepreneurs' Program gives eligible businesses access to expert advice that money can't buy, as well as financial support through grants and incentives. Startup India is a flagship initiative of the Government of India, launched in mid-January 2016, intended to develop startup culture and build a healthy ecosystem for entrepreneurship. The PMMY scheme, established in 2015, provides loans of ten lakhs to small enterprises, known as MUDRA loans under three names: Shishu, Kishore and Tarun, distinguishing the different stages of development of the startup.
Start-Up Chile is a program established by Chile's government that provides equity-free investment for qualified businesses, to help them get off the ground. In South Africa, funding institutions include the Department of Trade and Industry, the Industrial Development Corporation, KFW Development Bank, KZN Growth Fund and Land Bank. Startup Europe is the European Commission's initiative to connect high-tech startups, scaleups, investors, accelerators, corporate networks, universities and the media, with programs such as the EIC Accelerator and Eureka-Eurostars.