Ontario Together Trade Fund

Funding levels will be based on an assessment of the project impact.

Note that projects will only be considered for the maximum funding of 75% of eligible costs (to a maximum of $5 million), if the project can demonstrate exceptional benefits to Ontario and is aligned with government priorities.

Loans will be interest free during the project period (up to two years) typically with a 4 year pay-back period. If you achieve your investment and job targets, up to 30% of the loan (to a maximum of $1.5 million) may be forgiven. Applicants will be required to enter into a loan agreement and provide security satisfactory to Ontario.

Complementary supports and services

In addition to financial support, projects may also qualify for non-financial supports, which include:

1. Advisory services: Access to expert guidance and support to navigate government programs and services.
2. Assistance with compliance approvals: Support for processes such as obtaining necessary Ontario approvals and Ontario compliance certifications.
3. Accessing skills and talent: Access to programs, services and information that facilitate the acquisition of skilled personnel and talent that are crucial for the project's success.

For instance, if a project involves a facility expansion, applicants may be eligible for expedited environmental compliance approvals, significantly reducing the time and effort required to secure necessary permits and approvals. This non-financial support is designed to enhance the project's feasibility and efficiency, ensuring that projects can move forward with minimal delays and obstacles.

OTTF offers conditional funding to support eligible project activities, including:

1. business development, such as market diversification and sales expansion
2. increasing capacity and creating and securing jobs in Ontario
3. procurement of advanced equipment and facility modifications to enhance domestic manufacturing and support Ontario’s supply chain and/or reshoring production to Ontario
4. development of innovative technologies to boost the competitiveness of Ontario’s production and manufacturing capacity
5. localization for new markets (for example, certification, legal, labeling, testing costs)
6. modification of existing products to enter new sectors (for example, pivoting production from automotive fasteners to construction fasteners)
7. increasing the resiliency of Ontario’s economy in response to trade-related challenges, such as purchasing equipment and materials from local suppliers or shifting sales to non-U.S. markets

Eligible project costs must be directly attributable to the project and must be incurred and paid on or after the project start date and up to the project completion date, as defined in the funding agreement. The project start date cannot be earlier than the date the application is submitted.

Eligible project costs are cash outlays, excluding all applicable harmonized sales tax (HST) and any imposed tariff costs, which must be documented through invoices, receipts, or recipient records acceptable to Ontario. These are all subject to verification by an independent auditor. You must maintain evidence of payment for audit purposes.

Facilities and infrastructure

Eligible costs

1. construction and project facility modifications or upgrades, subject to Ontario’s approval
2. site servicing, power service upgrades, etc. required to execute the project
3. for projects where an applicant is expanding or relocating to a larger building – for example, increasing from 30,000 sq. ft. to 50,000 sq. ft. of productive space – only the costs associated with the additional 20,000 sq. ft. of productive space would be considered eligible

Equipment and machinery

Eligible costs

Equipment and machinery necessary for the successful completion of the project. For example:

1. advanced technology (equipment and machinery)
2. maintenance equipment associated with new technologies or systems acquired as part of the project

Labour

Eligible costs

One-time labour directly related to project costs are eligible (for example, costs to set up or commission new equipment, technology, or systems for the project).

Incremental specialized labour that is directly related to the project (for example, a new business development/sales manager with experience in sales to new markets) is eligible up to a maximum of two years.

This would include direct salaries, wages and benefits, paid by the recipient, for employees of the recipient working on the project and in proportion to the amount of time spent working directly on the project. Benefits mean employees’ regular entitlements for payroll-related benefits (Canada Pension Plan, Employment Insurance, employer health tax), medical and dental-related benefits, the actual cost of sick leave, vacation, statutory holidays and pension. Any other benefits must be approved in writing by Ontario.

The recipient is required to maintain timesheets or appropriate records for all employees working directly on the project to verify time spent on project work, to verify expenditures for audit purposes.

Materials

Eligible costs

Costs of direct materials necessary for—specifically identified and measured as being used for—the completion of the project, including:

1. materials used for configuring and testing production processes and systems
2. materials used for training employees
3. materials used for prototypes
4. other materials directly related to the project as approved by Ontario

Specialized expertise

Eligible costs

Costs of specialized expertise required for the project including third-party engineering services, software development, management, etc.

Training and talent costs

Eligible costs

1. skills training, including employer-provided training, related to the project
2. costs to provide the training (including training materials)
3. training infrastructure (for example, building retrofits for training room, equipment)
4. with limits, third party costs related to training for owners and/or management, to address specific business needs
5. cost to hire external expertise related to development of a human resource (HR) strategy and/or succession planning (or hiring an internal HR professional for a period of up to one year if company did not previously have one employed)

Permits and fees

Eligible costs

Costs incurred by the recipient for permits, inspections and other fees directly attributable to the project.

New Market Access

Eligible costs

1. procurement of market research reports that provide guidance on how to access and sell to new markets, except the U.S., from a reliable Canadian or local vendor
2. registration and booth costs of exhibiting in recognized trade shows held outside of Ontario and the U.S. and attended by buyers that provide access to new markets. Note: if the applicant is participating in a trade mission within Ontario or Canada, the costs covered through the mission will not be covered through OTTF
3. developing localized marketing and packaging materials, including translations
4. extending e-commerce reach to new markets, except the U.S.
5. certification of made in Ontario products for the purpose of meeting local regulatory/compliance requirements in new markets outside of Ontario and the U.S.
6. certification of Ontario production facilities for the purpose of meeting local regulatory/compliance requirements in new markets outside of Ontario and the U.S.
7. costs of registering trademarks
8. costs of extending existing patent rights to local markets (patent must belong and continue to belong to the Ontario applicant for at least the duration of the project)