LoanNorthern OntarioProductivity ImprovementEquipment Purchase or Upgrades

Targeted Manufacturing Initiative for Northern Ontario – Productivity Improvements

Through its Regional Economic Growth through Innovation program, FedNor can help existing Northern Ontario manufacturers upgrade and improve capital equipment used in manufacturing processes, including information and communications technology, to improve their competitiveness and productivity.

Offered by Federal Economic Development Agency for Northern Ontario (FedNor Ontario)

Amount

Generally up to 33% of eligible capital costs and up to 50% of eligible non-capital costs; assistance available for SMEs is repayable

Quick eligibility check

Years in business
No minimum stated
Employees
No limit stated
Revenue
No limit stated
Legal structure
No requirement stated
Location
Northern Ontario

Who can apply

  1. Eligible applicants are established manufacturers located in Northern Ontario. For further clarity, established manufacturers means firms currently operating, whose primary line of business is the manufacture of a commercial product and that are planning for growth.

Eligible Activities

  1. Activities that aim at improving and modernizing the manufacturing process, leading to increased productivity and competitiveness.

To be considered eligible, project benefits must accrue to Northern Ontario.

FedNor's designated service area (Northern Ontario) consists of the following Census Divisions:

  1. 3544 Muskoka District Municipality
  2. 3548 Nipissing District
  3. 3549 Parry Sound District
  4. 3551 Manitoulin District
  5. 3552 Sudbury District
  6. 3553 Greater Sudbury Census Division
  7. 3554 Timiskaming District
  8. 3556 Cochrane District
  9. 3557 Algoma District
  10. 3558 Thunder Bay District
  11. 3559 Rainy River District
  12. 3560 Kenora District

About the funding

  1. Assistance available for SMEs is repayable.
  2. Generally, FedNor will contribute up to 33% of eligible capital costs and up to 50% of eligible non-capital costs.
  3. If applicants incur costs to implement their projects prior to approval of funding, these costs will not be considered eligible for reimbursement unless written consent is provided by FedNor.

Eligible project costs include all expenses directly related to the project and deemed reasonable and necessary for its execution. Costs may include:

Show all funding details
  1. plant equipment purchases, including digital hardware and software that are a direct part of the manufacturing process;
  2. installation and commissioning of new equipment;
  3. training on the use of new equipment;
  4. implementation of recommendations from an Operational Assessment, such as lean manufacturing, ISO certification, quality controls, information and communications technology or other operational and managerial improvements; and
  5. modernizing the production facility through upgrades to existing production equipment (e.g., automation, robotics, ancillary systems).
  6. Eligible costs must be for arm's-length purchases.

Note: Applicants are encouraged to consider Canadian materials and content, where such materials and content are competitive and available.

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