Southwestern Ontario Development Fund — Business project loans
Highlights
This program is designed for businesses like yours in Southwestern Ontario. It offers up to 15% of eligible project costs in funding, with loans up to $5 million that are interest-free for up to four years. If you meet your investment and job creation targets, up to 30% of the loan may be forgiven. This makes it a more attractive option compared to traditional financing.
What You Get:
- Interest-free loans for up to four years
- Potential loan forgiveness of up to $500,000
- Grants up to $500,000 for smaller companies in rural areas
By participating, you can grow your business, improve productivity, and invest in innovation and skills development. The program also offers complementary services like advisory support and assistance with environmental compliance. Qualifying is straightforward, and the benefits can significantly impact your business's growth and regional economic contribution.
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 (up to 4 years). If your business meets its investment and job targets, up to 30% of the loan (to a maximum of $500,000) may be forgiven.
- Grants: Available in specific circumstances, up to 15% of eligible project costs. The maximum grant is:
- $500,000 for companies with fewer than 100 employees based in rural Ontario.
- $1,500,000 for strategic projects that are foreign direct investments or from companies competing against other jurisdictions.
Eligible Expenses:
- Business growth initiatives
- Productivity improvements
- Innovation and skills development
- Market expansion efforts
Ineligible Expenses:
- Ongoing operations, including maintenance and capital replacement
- Refinancing existing business operations
- Acquisitions and buyouts
- Restructuring or relocating within Ontario
- Primary production, retail, construction (residential development), personal services, consulting, electricity generation, waste management/recycling, information and communication services, academic research, and stand-alone restaurants and hotels (unless transformative and considered a regional priority)
Fees:
- No specific fees associated with the program are mentioned. However, it is advisable to consult with a regional advisor for any potential administrative costs.
Qualifications
- Must have at least 3 years of operations/financial statements.
- Must employ at least 10 people (or 5 if located 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 the project (or $200,000 if located in rural Ontario).
Must be located in, or plan to locate in, a community in southwestern 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
The program offers your business a chance to grow and innovate with financial support. You can receive up to 15% of your eligible project costs. This can be in the form of a loan or a grant, depending on your specific needs and circumstances.
Loans:
- Up to $5 million, interest-free for up to 4 years.
- If you meet your investment and job creation goals, up to 30% of the loan (maximum $500,000) may be forgiven.
Grants:
- For businesses with fewer than 100 employees in rural areas, up to $500,000.
- For strategic projects involving foreign direct investments or competition with other jurisdictions, up to $1.5 million.
The funds can be used to:
- Grow your business
- Improve productivity
- Invest in innovation and skills development
- Pursue new markets
This program is designed to help you make significant investments that lead to business growth, new market access, and job creation. It’s a great opportunity to enhance your business operations and contribute to regional economic development.
Program Steps
Contact a Regional Advisor: Reach out to a regional advisor to discuss your project. They will help you assess your fit with the program and provide advice on application preparation.
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 your legal business name and Canadian Revenue Agency Business Number ready.
Prepare Documentation: Gather the necessary documents to support your application. These include:
- Financial statements for the past 3 years
- Business plan
- Details of the project, including investment and job creation plans
- Quotes or estimates for project costs
- Proof of private sector support (if applicable)
Complete the Online Self-Assessment Tool: Use the self-assessment tool available on the program’s website to ensure your project aligns with the program’s goals.
Work with Your Regional Advisor: Collaborate with your regional advisor to complete the application form. They will guide you through the process and ensure all required information is included.
Submit the Application on TPON: Submit your completed application form and all required documents through the TPON system. Ensure everything is accurate to avoid delays.
Wait for Notification: After submission, wait for the notification of the decision, which will be provided within approximately 60 business days of the application deadline.
Follow Up: If additional information is requested, provide it promptly to ensure the smooth processing of your application.
