Southwestern Ontario Development Fund — Community economic development projects
Highlights
This program is designed for businesses like yours in southwestern Ontario. It offers up to 15% funding for eligible project costs, with a maximum of $5 million in interest-free loans during the project period. If you meet your investment and job targets, up to 30% of the loan (to a maximum of $500,000) may be forgiven. This makes it a more attractive option compared to traditional loans.
Key Benefits:
- Financial Support: Up to 15% of project costs covered.
- Interest-Free Loans: Up to $5 million, with potential loan forgiveness.
- Grants: Available for specific circumstances, up to $1.5 million.
By participating, you can grow your business, improve productivity, and invest in innovation. 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:
- Amount: Up to 15% of eligible project costs, with a maximum of $5 million.
- Interest Rate: Interest-free during the project period (up to 4 years).
- Forgiveness: Up to 30% of the loan (to a maximum of $500,000) may be forgiven if investment and job targets are met.
Grants:
- Amount: Up to 15% of eligible project costs.
- Maximum: $500,000 for companies with fewer than 100 employees in rural Ontario.
- Maximum: $1,500,000 for strategic projects involving foreign direct investments or competition against other jurisdictions.
Eligible Expenses:
- Business growth initiatives
- Productivity improvements
- Innovation and skills development
- Market expansion
- Regional economic impact projects
Ineligible Expenses:
- Ongoing operations, maintenance, and capital replacement
- Refinancing existing business operations
- Acquisitions and buyouts
- Restructuring or relocating within Ontario
- Primary production, retail, construction, 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.
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
This program offers financial support and services to help your business grow, improve productivity, and invest in innovation. You can receive up to 15% of your project costs through loans or grants.
Loans are interest-free for up to 4 years, with a maximum of $5 million. If you meet your investment and job targets, up to 30% of the loan (to a maximum of $500,000) may be forgiven. Grants are available for specific circumstances, up to $500,000 for smaller businesses in rural areas, or up to $1.5 million for strategic projects.
The funding can be used for various purposes, such as:
- Expanding your business
- Improving productivity
- Investing in new technology and skills
- Entering new markets
This program is a great opportunity to boost your business and create sustainable jobs, making a positive impact on your community and the region.
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): Create an account 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 for your application. These include:
- Financial statements for the past 3 years
- Business plan
- Details of the project, including budget and expected outcomes
- Proof of employment numbers
- Evidence of committed investment
Complete the Application Form: Work with your regional advisor to fill out the application form on TPON. Ensure all required fields are completed accurately.
Submit Supplemental Information: Along with the application form, submit all required supplemental information through TPON. This includes the documents prepared in Step 3.
Review and Submit: Review your application for completeness and accuracy. Once satisfied, submit the application through TPON before the deadline.
Await Notification: After submission, wait for the notification regarding the decision on your application. This process typically takes up to 60 business days from the application deadline.