INVEST North Program — Investment — Locate Stream
Highlights
This program is a fantastic opportunity for your business to grow and thrive in Northern Ontario. By applying, you can access up to $5 million in funding through a combination of conditional contributions and term loans. This financing can be used for a variety of essential business needs, including capital construction, leasehold improvements, new or used equipment, and ICT investments.
Key Benefits:
- Significant funding: Up to $5 million available.
- Flexible use: Funds can be used for construction, equipment, technology, marketing, and training.
- Government-backed: This program offers a secure and reliable source of financing.
Approval for this program can help you create jobs, secure additional investments, and provide net economic benefits to Northern Ontario. The application process is straightforward, starting with a pre-application consultation to guide you through the steps. This program is designed to support businesses like yours, making it easier to qualify and access the resources you need to succeed.
Financing Details
Type of Financing:
- Conditional Contribution: This is a non-repayable grant, provided certain conditions are met.
- Term Loan: A repayable loan, terms and conditions vary based on the project's economic benefit to Northern Ontario.
Repayment Terms and Interest Rates:
- Term Loan: Specific repayment terms and interest rates will be determined on a case-by-case basis, depending on the project's details and economic impact.
Eligible Expenses:
- Capital construction
- Leasehold improvements
- New or used equipment (including capital leases)
- Land servicing costs
- Information & communications technology (ICT) investments
- Marketing for new products and business initiatives (up to 20% of all other eligible project costs or $75,000, whichever is less)
- Training costs incurred with third parties (up to 20% of all other eligible project costs)
Ineligible Expenses:
- Retail and consumer service businesses
- Ongoing operating costs (including maintenance)
- In-kind contributions
- Restructuring or refinancing of existing business operations
- Accommodation & food service businesses
- Wholesale activities
- Business plans, strategic plans, feasibility studies
- Assets acquired through operating leases
- Research and development
- Land purchase/lease
- Rolling stock (e.g., cars, trucks, boats)
- Project management, consulting, and administration costs
- Mineral exploration, mine development, and milling operations
- Working capital
- Cost of inventory
- Cellular and internet service projects
- Capital projects or leasehold improvements to residential or personal properties
- Acquisitions and buy-outs of existing businesses
- Electricity generation projects
Fees:
- No specific fees mentioned. However, applicants must secure the balance of funding/financing necessary to implement the project.
- Reimbursement may be required if assets financed by NOHFC are sold after project completion.
Qualifications
- Must be locating new business operations to Northern Ontario.
- Must secure the balance of funding/financing necessary to implement the project.
Must schedule a pre-application consultation session with NOHFC staff prior to applying.
Disqualifications:
- Retail and consumer service businesses that primarily earn revenue by providing products and services directly to individuals.
- Accommodation and food service businesses and related business activities.
- Businesses primarily involved in wholesale activities.
- Beverage alcohol manufacturing companies, including spirit distilleries, breweries, wineries, and cideries.
- Projects that develop land for resale or lease.
- Businesses involved in mineral exploration, mine development, and milling operations.
- Projects involving electricity generation.
- Projects that include ongoing operating costs, in-kind contributions, restructuring or refinancing of existing business operations, and working capital.
- Projects involving research and development, business plans, strategic plans, feasibility studies, and acquisitions or buy-outs of existing businesses.
- Projects involving rolling stock (e.g., cars, trucks, boats, and motors), land purchase/lease, and assets acquired through operating leases.
- Projects involving capital projects or leasehold improvements to residential or personal properties.
- Projects involving cellular and internet service projects, cost of inventory, and project management, consulting, or administration costs.
Description
This program offers your business up to $5 million in funding. The money can be used for various purposes, such as:
- Capital construction
- Leasehold improvements
- New or used equipment
- Land servicing costs
- Information & communications technology (ICT) investments
- Marketing for new products and business initiatives (up to 20% of other eligible project costs or $75,000, whichever is less)
- Training costs with third parties (up to 20% of other eligible project costs)
The funding comes as a conditional contribution or a combination of a conditional contribution and a term loan. The exact amount and type of funding will depend on the economic benefit to Northern Ontario.
Combined federal and provincial funding cannot exceed 50% of eligible project costs. You will need to secure the remaining funding from other sources.
This program is a great opportunity to grow your business while contributing to the economic development of Northern Ontario.
Program Steps
Schedule a Pre-Application Consultation:
- Contact NOHFC at 1-800-461-8329 to schedule a consultation.
- A staff member will be assigned to your file and guide you through the pre-consultation process.
Prepare Required Documentation:
- Detailed business plan
- Financial statements
- Quotes for capital construction, leasehold improvements, or equipment
- Marketing plan for new products or business initiatives
- Training costs documentation from third parties
- Information & communications technology (ICT) investment details
Submit Initial Application Online:
- Complete the initial application form available on the NOHFC website.
- This application will determine if your project is eligible under the program guidelines.
Submit Detailed Business Proposal:
- If your initial application is approved, you will be notified to submit a detailed business proposal.
- Ensure your proposal includes all necessary documentation and clearly outlines the project’s benefits to Northern Ontario.
Review and Approval:
- NOHFC will evaluate your detailed business proposal based on criteria such as job creation, investment level, and economic benefits.
- Funding options, including conditional contributions and term loans, will be discussed during this phase.
Secure Balance of Funding:
- Ensure you have secured the necessary funding or financing to implement the project.
- Combined federal and provincial government funding may not exceed 50% of eligible project costs.
Final Approval and Funding Disbursement:
- Upon final approval, discuss the terms of funding, including any conditions or repayment schedules.
- Once agreed upon, the funds will be disbursed to support your project.
Project Implementation and Compliance:
- Implement your project as outlined in your proposal.
- Maintain compliance with NOHFC requirements, including potential reimbursement if financed assets are sold after project completion.