Eligible projects

Here are examples of business projects that are eligible for funding:

  • investments in equipment, new technologies, talent and training to enhance business productivity and competitiveness, leading to growth
  • investment in new operations in Eastern or Southwestern Ontario
  • investment in existing operations that lead to business expansion and introduction of new products or services, or new markets

Priority will be given to projects that generate regional economic impacts beyond the company.

Ineligible projects

These types of projects are not eligible for funding:

  • ongoing operations including maintenance and capital replacement
  • refinancing of existing business operations
  • acquisitions and buyouts
  • restructurings, or relocations to other jurisdictions within Ontario
  • projects that target ineligible sectors or applicants, for example retail or start ups.

Projects in these sectors are not eligible for support:

  • primary production
  • retail
  • construction (for example, 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)

Criteria

Type of business

Your firm must be a for-profit business (legal entity) registered to carry out business in Ontario.

Municipalities, Indigenous communities, economic development agencies, sector associations, and consortia may be eligible for funding under the Community Economic Development Project Program

Employees

Your firm must have at least 10 full-time equivalent (FTE) employees at the time of the application or five FTEs if your business is in a rural community. All employees must be issued a T4.

A full-time equivalent (FTE) is calculated as 2,000 hours or more of work during each fiscal year.

Rural is defined as a municipality with a population of less than 100,000 people or a population density of 100 people per square kilometer or less.

Job creation

Companies must commit to creating a minimum number of jobs as a result of the project.

If your company has more than 15 FTE employees at the time of the application, you must commit to creating a minimum of five new FTEs by the end of the project.

If your company has fewer than 15 FTE employees at the time of the application, you must commit to increasing your workforce by a minimum of 30% by the end of the project (for example, a company that starts with 10 FTEs must add a minimum of three new FTEs by the end of the project).

Please see Appendix B: Job creation and definition for more information.

Operating experience

Your firm must have a minimum of three years of substantive operating experience supported by three years of financial statements (audited financial statements or review engagement). Companies may not submit internally prepared financial documents. Financial statements must meet GAAP standards and include a balance sheet, income statement, and cashflow statement.

If you are applying for a grant and have revenues under $5 million, it may be possible to submit externally prepared Notice to Reader financial statements at the application stage, but should your project be approved for funding you would be required to provide a minimum of review engagement financial statements for the duration of the project.

Companies should also have a track record of sales of a product or service, and at a stage where they are expanding their product or service offerings.

Minimum eligible investment

You must commit to a minimum eligible investment amount of $500,000 (or $200,000 if your business is considered “small and rural” as defined by the program in the types of support section). 

Project start date

The project start date cannot be earlier than the application period close date.

Length of project

Projects must be between 3 and 4 years in length to allow time for companies to meet investment and job creation and retention targets.

The project spending period can be less than 3 years but not exceed 48 months.

Compliance

Your firm must be compliant with all applicable laws and not owing any fees, levies or taxes to Her Majesty the Queen in right of Ontario or her agencies.

Previous funding

If your business has previously been approved for a project under the EODF or SWODF, the project must have been successfully completed before a new project will be considered.

Applicants with active loan agreements may apply if project/company is in good standing and at least 50% of loan has been repaid. Companies related to a current recipient (through a parent or ownership) are not eligible to apply.

Stacking

Stacking with other provincial sources of financing for the project is not permitted except for projects receiving support from tax credits and company-wide programs (for example, electricity support programs) and supports provided through the program’s complementary supports and services.

Maximum funding from federal and provincial sources is 50%. Businesses need to demonstrate that all financing will be in place, to the satisfaction of the Government of Ontario, at the start of the project.

Sector

Projects should be in sectors that play a role in long-term economic sustainability with higher multiplier effects.