Community Economic Development and Diversification. Incorporated businesses
“FedDev Ontario”
$10,000,000.00
Maximum Eligible Amount
Repayable Contribution
Fund Type
The Community Economic Development and Diversification Stream aims to develop, diversify and transform local economies by promoting small business development, community innovation and strategic collaborations.
1. What we support
Southern Ontario businesses are key to Canada’s global competitiveness and long-term prosperity. FedDev Ontario is investing to build and compete by supporting companies to adopt cutting-edge solutions, enhance productivity, break into new markets and build for the future.
Next steps
- See if this funding opportunity is right for you.
- Click "Next" and review more program information.
- Complete your application.
2. Who can apply?
Growing and established businesses, co-operatives and Indigenous (First Nations, Métis and Inuit Peoples) businesses located or expanding in southern Ontario that:
- are for-profit entities located and operating in southern Ontario at the time of your application
- have a minimum of 5 full-time employees and no more than 500 FTEs
- are incorporated and registered to do business in Canada or Ontario for at least the past 3 years
What activities do we fund?
We support the following activities:
Developing, commercializing and/or producing new and innovative products, processes and services
- Late-stage development of a new product for sale. Activities would normally fall within technology readiness levels (TRL) 7-9.
- Development of process improvements which reduce environmental impact of current operations (through use of new technology).
- Showcasing and demonstrating a new technology in an operational setting.
- Market diagnostics and studies.
Note: activities that support basic research are not eligible for funding
Improving productivity, capacity and competitiveness
- Acquiring, adapting or adopting new technologies or processes (e.g., digitization).
- Improving production efficiency and capacity through equipment upgrades, and/or process improvements and related facility enhancements.
- Adopting clean technologies.
- Increasing business management capacity.
- Improving processes to increase efficiency, including automation and related skills development.
Note: consideration may be given to projects that:
- acquire, adopt, or adapt technologies made or developed in southern Ontario and in Canada
- are first in the sector, Ontario, Canada or the world
- are integral to a business, sector or community's economic diversification.
Scaling-up or expanding business lines to tap into new markets or reach new customers
- Launching new products or services.
- Integrating into domestic and global value chains/supply chains.
- Leveraging venture capital or angel capital investment to support business growth.
- Reshoring or onshoring of production, research and development mandates and/or highly qualified personnel/expertise to southern Ontario.
What results are expected?
Your project proposals should help us create broad and long-term economic benefits for southern Ontario.
To contribute to the local economy, projects will:
- create and maintain jobs
- grow revenue
- increase exports
- build economic partnerships and collaborations
- leverage private sector funding
- generate sales from new products, services, or processes commercialized (if applicable)
Refer to the Application Guide for more information on project indicators and expected results. Applicants will be required to quantify and substantiate their expected results, and if approved, later report on these results.
3. How funding works
All funding is project-based, meaning that it must result in incremental outcomes for the applicant linked to Government of Canada priorities and is subject to a set of funding rules and reporting requirements.
An application does not constitute a commitment from FedDev Ontario for financial assistance.
If an application for project funding receives approval, you will be expected to sign a legally binding contribution agreement before funding can be provided.
Funding parameters
| Funding parameter | Funding parameter description |
|---|---|
| Funding amounts | Applicants normally request a minimum of $125,000 up to a maximum of $10 million per project in repayable contribution funding. |
| Matching requirement (cost sharing) | Eligible project costs are shared between you and FedDev Ontario.
|
| Eligible costs | New costs essential to the project, such as labour, expertise and equipment costs. Refer to the Application Guide for details on cost categories. |
| Ineligible costs | Costs deemed unreasonable, non-incremental and/or not directly related to project activities, for example: land and buildings, basic & applied research and development, refinancing of existing debts and more. Refer to the Application Guide for details on cost categories. |
| Project timeframe | Project start dates may vary. Proposed activities and related costs cannot begin before the date the application is submitted. Should your project be approved, any activities and related costs that occur before the date the application is submitted, cannot be funded and are at the applicant's own risk. Projects, activities and budgets can span more than 1 year. On average, projects span between 1 - 3 years. |
| Repayment terms | Interest-free and unconditionally repayable (see key funding conditions below). Should your project be approved, repayment will normally begin 1 year after the completion of the project. The schedule of payments will be set out in your contribution agreement. There is no penalty for early repayment. |
Key funding conditions
- An application does not constitute a commitment from FedDev Ontario for financial assistance.
- The contribution amount is subject to availability of funding. FedDev Ontario reserves the right to make the final determination on the value of the contribution.
- FedDev Ontario's funding contribution is based on a number of factors, including:
- the minimum amount required for the project to proceed,
- the extent to which other available funding sources have been leveraged, and
- the ability to repay the contribution.
- If a project is approved, you will be expected to confirm all sources of the matching funding (e.g., bank statements, term sheets, letters of conditional funding, and other government funding) and sign a contribution agreement within 30 calendar days of being notified.
- Funding will be reimbursed based on approved costs incurred and claimed throughout the project's duration.
Important Note
- Financial assistance may have tax implications for your business. It is recommended that applicants obtain advice from a qualified tax professional to determine the full implications of receiving funding.
4. How projects are assessed
Projects are assessed based on the information provided by applicants. Although FedDev Ontario may engage companies directly on outstanding questions or issues, applicants are advised to submit a complete and thorough application including all mandatory attachments. Failure to do so may result in your application not being assessed.
Assessment criteria
Complete applications are reviewed and assessed based on multiple criteria, including:
- alignment to funding activities
- expected results of the project
- degree to which the project supports new or expanded initiatives for your company (i.e., incrementality of the project)
- quality of the project plan and budget, including:
- project readiness
- ability to repay
- applicant’s managerial, technical, operational and financial capacity
- degree of risk and mitigation measures
- quality of intellectual property (IP) strategies for IP-intensive projects.
In addition to the quality of your application, FedDev Ontario reserves the right to base funding decisions on the breadth, representation and diversity of its projects.
Applicants will also be assessed for their compliance with applicable legislation and regulatory requirements. Refer to the Application Guide for more details.
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