Funding for businesses in southern Ontario
FedDev Ontario is investing to build and compete by supporting companies to adopt cutting-edge solutions, enhance productivity, break into new markets and build for the future.
Offered by Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
Amount
Up to $10 million
Minimum of $125,000 up to a maximum of $10 million per project in repayable contribution funding; normally a maximum of 50% of eligible project costs
Quick eligibility check
Who can apply
Growing and established businesses, co-operatives and Indigenous (First Nations, Métis and Inuit Peoples) businesses located or expanding in southern Ontario that:
- are for-profit entities located and operating in southern Ontario at the time of your application
- have a minimum of 5 full-time employees and no more than 500 FTEs
- are incorporated and registered to do business in Canada or Ontario for at least the past 3 years
This program requires at least 5 FTEs located in southern Ontario and less than 500 FTEs overall. If you have part-time employees, please explain in question 8 or via an attachment how their combined hours add up to the full-time equivalent of at least 5 FTEs. For example, if each part-time employee works 20 hours a week, provide details on how the total number of part-time hours meets or exceeds the 35 hours per week for 5 FTEs. Your company may be deemed ineligible without this information.
About the funding
Funding is provided through the Business Scale-up and Productivity and Community Economic Development and Diversification programs. FedDev Ontario will determine the appropriate program on your behalf.
- Note: the information provided is important to demonstrate the ability to repay the contribution.
We support the following activities:
- Late-stage development of a new product for sale. Activities would normally fall within technology readiness levels (TRL) 7-9.
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- Development of process improvements which reduce environmental impact of current operations (through use of new technology).
- Showcasing and demonstrating a new technology in an operational setting.
- Market diagnostics and studies.
- Acquiring, adapting or adopting new technologies or processes (e.g., digitization).
- Improving production efficiency and capacity through equipment upgrades, and/or process improvements and related facility enhancements.
- Adopting clean technologies.
- Increasing business management capacity.
- Improving processes to increase efficiency, including automation and related skills development.
Note:
consideration may be given to projects that:
- acquire, adopt, or adapt technologies made or developed in southern Ontario and in Canada
- are first in the sector, Ontario, Canada or the world
- are integral to a business, sector or community's economic diversification.
- Launching new products or services.
- Integrating into domestic and global value chains/supply chains.
- Leveraging venture capital or angel capital investment to support business growth.
- Reshoring or onshoring of production, research and development mandates and/or highly qualified personnel/expertise to southern Ontario.
Eligible project costs must be reasonable, verifiable, incremental, and directly support project activities. Eligible project costs do not include ongoing costs of production or operations.
- Machinery and equipment: the purchase and/or installation of equipment, machinery or software directly related to, or necessary for, the completion of the project.
Project facilities and infrastructure: costs for renovation, site or leasehold improvements directly related to the purchase or installation of specialized equipment or assets related to the project.
- Labour: incremental salaries and benefits for individual employees directly related to completing the activities of the project, other than those covered under Expertise (contracted services) or Project Management costs.
- Expertise: incremental fees paid to professional and technical personnel, consultants, engineers or contractors. Eligible costs exclude costs of external (third-party) consultants paid to prepare an application.
- Marketing and outreach: where relevant to the project, include costs to promote project activities, commercial demonstration of products, processes and services resulting from the project, translation and other related costs.
- Training and talent: where relevant to the project, include training sessions, course material, external trainers and other reasonable costs such as training and talent costs not covered by another cost category.
- Materials: cost of direct materials used for the completion of the project, including materials to configure and test production systems, prototypes and product testing, and for software or other non-capital equipment.
Repayment terms: interest-free and unconditionally repayable. If the project is approved, repayment normally begins 1 year after the project is completed, on a schedule set out in the contribution agreement. There is no penalty for early repayment. Funding is reimbursed based on approved costs incurred and claimed throughout the project. Total government assistance (federal, provincial and municipal) for a project cannot exceed 75% of eligible non-capital costs and 50% of eligible capital costs.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Regional Development Program: Advanced Manufacturing and Innovation Competitiveness Stream | Grant, Loan | Up to 15% of eligible project costs | Open |
| Forest Sector Investment and Innovation Program (FSIIP) – Business Projects | Loan, Grant | Performance-based loan of up to a maximum of 30% of eligible project costs (forgivable portion to a maximum of 50% of the loan amount) | Open |
| BDC Small business loan | Loan | Up to $350,000 per BDC Small Business Loan: up to $100K (up to 6 months interest-only payments, 5-year amortization) or over $100K and up to $350K (up to 12 months interest-only payments, up to 8-year amortization) | Open |
| Ontario Together Trade Fund | Grant, Loan | Up to $5 million | Open |
