Southwestern Ontario Development Fund
The Southwestern Ontario Development Fund provides support for projects and investments to existing businesses, municipalities and not-for-profit organizations for economic development in southwestern Ontario.
Offered by Ministry of Economic Development, Job Creation and Trade
Amount
Business projects: up to 15% of eligible project costs — loans up to 15% to a maximum of $5M, interest free during the project period (up to 4 years), with up to 30% of the loan (to a maximum of $500,000) forgivable; grants up to 15% to a maximum of $500,000 (rural companies with fewer than 100 employees) or $1,500,000 (strategic projects). Community economic development projects: up to 50% of eligible project costs for a maximum grant of up to $1.5 million
Quick eligibility check
Who can apply
The fund supports business and community economic development projects.
Business projects
To be eligible, businesses need to:
- have at least 3 years of operations/financial statements
- employ at least 10 people (or 5 if you are in rural Ontario)
- commit to creating at least 5 new jobs (or 30% increase for companies with fewer than 15 employees)
- invest at least $500,000 in their project (or $200,000 if you are in rural Ontario)
- be located in, or plan to locate in, a community in southwestern Ontario
Community economic development projects
To be eligible, projects need to:
- be led by municipalities, economic development organizations or sector organizations
- focus on economic and business development and job creation in the community or region by investing in infrastructure or implementing strategies to advance regional economic development priorities
- lead to measurable outcomes including private sector investment, growth and job creation
- invest more than $100,000
- have private sector support
- be used for activities that are new to the organization
- Is your organization an incorporated for-profit business with a plan to invest in an eligible region in Ontario?
Notes:
- please see the program guidelines for information on eligible geographic regions
- sole proprietorships and start-ups are not eligible for the program
- Does your organization (or parent company) have a minimum 3 years of substantive operations supported by 3 years of externally reviewed financial statements? Applicants will be required to supply financial statements.
Rural is defined as a municipality with a population of less than 100,000 people or a population density of 100 people per square kilometer or less.
- Is your organization one of the eligible entities listed below? (Note: Charities are not eligible under this program.)
- Municipality
- Indigenous community
- Incorporated non-governmental organization (with economic development mandate)
- Industry/Sector Association (for example, formally constituted body bringing together multiple organizations with common interest such as manufacturing)
- Consortium of Businesses lead by at least 1 not-for-profit organization
About the funding
Business projects
Funding amount
Up to 15% of eligible project costs.
Loans
Show all funding details
Up to 15% funding to a maximum of $5M, interest free during the project period (up to 4 years). If you achieve your investment and job targets, up to 30% of the loan (to a maximum of $500,000) may be forgiven.
Grants
Grants are available only for specific circumstances, up to 15% to a maximum:
- Of $500,000 if your company has fewer than 100 employees and is based in rural Ontario (population of your community is less than 100,000 or population density is less than 100 people per square kilometre)
- Of $1,500,000 for strategic projects that are foreign direct investments or from companies competing against other jurisdictions (in limited circumstances)
Restrictions
You are not allowed to combine (or “stack”) Southwestern Ontario Development funding with other provincial programs.
Community economic development projects
Funding amount
Up to 50% of eligible project costs for a maximum grant of up to $1.5 million.
Restrictions
You are not allowed to combine (or “stack”) Southwestern Ontario Development funding with other provincial programs.
Complementary services and support
Complementary Services and Supports are available when you submit a complete application to the Eastern Ontario Development Fund or Southwestern Ontario Development Fund through the Regional Development Program. These services are available for the duration of your project regardless of the funding outcome. Services will be coordinated by working with partner ministries until they are delivered, closed-out or finalized.
Business projects
Businesses may be eligible for other assistance related to advisory services, assistance with environmental compliance approvals, assistance in accessing skills and talent, and information related to available tax credits.
Community economic development projects
Applicants may be eligible for other assistance related to advisory services and navigation support for land-use planning and workforce development.
Eligible projects include:
- investments in equipment, new technology, talent and training to enhance productivity, competitiveness and growth
- investment in new operations or existing operations that lead to business expansion/new products/services.
Eligible projects:
- a municipality investing in infrastructure in order to secure a private sector investment
- a consortium to promote technological adoptions, develop a supply chain to accommodate a new foreign direct investment (FDI), implement an economic development strategy or priorities identified in planning processes for the region (for example, regional/provincial strategic plans)
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 |
| AgriScience Program – Projects | Grant, In-Kind Support | Up to $5 million per project and $10 million per applicant over the program's duration (2023 to 2028) | Open |
| Canadian Agricultural Strategic Priorities Program | Grant, Loan | AAFC contribution normally not exceeding $1 million per project, generally not more than $5 million over 5 years for each applicant | 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 |
