Eastern Ontario Development Fund — Community economic development projects
Highlights
This program is designed to help your business grow and thrive in Eastern Ontario. By applying, you can access up to 15% of eligible project costs through interest-free loans for up to four years. If you meet your investment and job creation targets, up to 30% of the loan may be forgiven, making it a highly attractive financing option.
What You Get:
- Interest-free loans up to $5 million
- Potential loan forgiveness up to $500,000
- Grants up to $1.5 million for strategic projects
These funds can be used to expand your business, improve productivity, invest in innovation, and enter new markets. Additionally, the program offers complementary services such as advisory support and assistance with environmental compliance, helping you navigate the complexities of business growth. Applying is straightforward, and with the support of a regional advisor, you can ensure your application is strong and well-prepared.
Financing Details
Type of Financing:
- Loans: Up to 15% funding to a maximum of $5 million. These loans are interest-free during the project period, which can last up to 4 years. If you meet your investment and job creation targets, up to 30% of the loan (to a maximum of $500,000) may be forgiven.
- Grants: Available only under specific circumstances. Grants can cover up to 15% of eligible project costs, with a maximum of:
- $500,000 for companies with fewer than 100 employees in rural Ontario.
- $1,500,000 for strategic projects involving foreign direct investments or companies competing against other jurisdictions.
Eligible Expenses:
- Business growth initiatives
- Productivity improvements
- Innovation and skills development
- Market expansion efforts
Ineligible Expenses:
- Ongoing operations, maintenance, and capital replacement
- Refinancing existing business operations
- Acquisitions and buyouts
- Restructuring or relocating within Ontario
- Primary production, retail, and construction (e.g., residential development)
- Personal services, consulting, electricity generation, waste management/recycling, information and communication services, academic research
- Stand-alone restaurants and hotels (unless transformative and considered a regional priority)
Fees:
- No specific fees are associated with the program itself. However, ensure to consult with a regional advisor for any potential costs related to application preparation and submission.
Qualifications
- Must have at least 3 years of operations/financial statements.
- Must employ at least 10 people (or 5 if in rural Ontario).
- Must commit to creating at least 5 new jobs (or a 30% increase for companies with fewer than 15 employees).
- Must invest at least $500,000 in their project (or $200,000 if in rural Ontario).
Must be located in, or plan to locate in, a community in eastern Ontario.
Disqualifications:
- Ongoing operations including maintenance and capital replacement.
- Refinancing of existing business operations.
- Acquisitions and buyouts.
- Restructuring, or relocating to other jurisdictions within Ontario.
- Primary production.
- Retail.
- Construction (e.g., residential development).
- Personal services.
- Consulting.
- Electricity generation.
- Waste management/recycling.
- Information and communication services.
- Academic research.
- Stand-alone restaurants and hotels (unless transformative and considered a regional priority).
Description
This program offers your business financial support to help it grow and thrive in Eastern Ontario. You can receive up to 15% of your project costs through funding. This can be in the form of loans or grants.
Loans are interest-free for up to four years. If you meet your investment and job creation targets, up to 30% of the loan (up to $500,000) can be forgiven. Grants are available in specific cases, providing up to $500,000 for smaller businesses in rural areas or up to $1,500,000 for strategic projects.
You can use this money to expand your business, improve productivity, invest in innovation, develop skills, and explore new markets. This program aims to create new, sustainable jobs and generate a positive economic impact in the region. This is a great opportunity to take your business to the next level with substantial financial backing.
Program Steps
Complete the Online Self-Assessment Tool: Start by completing the self-assessment tool available online to ensure your project aligns with the fund’s goals.
Contact a Regional Advisor: Reach out to a regional advisor for guidance on your application. They can help you assess your project’s fit with the program and provide advice on preparing your application.
Register for Transfer Payment Ontario (TPON): Register your business on TPON, the Province of Ontario’s online application system for grant funding. Ensure you have the necessary information and official business documents ready, such as:
- Legal business name
- Canadian Revenue Agency Business Number
Prepare Required Documentation: Gather the necessary documents to support your application. These may include:
- Financial statements for the past three years
- Business plan outlining the project
- Details of the intended use of funds
- Quotes for equipment or renovation costs
- Proof of employment numbers
- Evidence of private sector support (if applicable)
Work with Your Regional Advisor: Collaborate with your regional advisor to complete the application form. They can provide valuable insights and ensure your application is thorough and accurate.
Submit the Application on TPON: Once your application form is complete, submit it on TPON along with all required supplemental information. Make sure to review the program guidelines and sample application forms to ensure compliance.
Review and Notification: After submission, your application will be reviewed. You will be notified of the decision within approximately 60 business days of the application deadline.
Follow Up: If approved, discuss the final terms and conditions with your regional advisor. Ensure you understand all aspects of the funding agreement before proceeding with your project.