Eastern Ontario Development Fund (EODF) — Business project loans

Eligibility for this grant is determined by specific requirements related to the company's operations, location, and proposed project.

• The company must be a for-profit business registered to carry out business in Ontario.
• The business must have at least three years of substantive operating experience with three years of financial statements that meet GAAP standards.
• The company must employ at least 10 full-time equivalent (FTE) employees or 5 FTEs if located in a rural area.
• It must be located in or plan to locate in a community within Eastern Ontario.
• The company must commit to creating at least five new jobs or a 30% increase in workforce for companies with fewer than 15 employees.
• The project must entail a minimum eligible investment of $500,000, or $200,000 if the business is in a rural location.
• The project start date cannot be earlier than the application period close date, and projects must be between 3 and 4 years in length.
• The company must not have any outstanding fees, levies or taxes owed to His Majesty the King in right of Ontario or its agencies.
• For businesses with previous funding, any previous projects under EODF or SWODF must be successfully completed before applying again, and any active loans must be at least 50% repaid if applying for a new project.

Who is eligible?

The Eastern Ontario Development Fund is open to existing businesses, municipalities, and not-for-profit organizations located in or planning to locate within Eastern Ontario. Eligible business applicants must meet specific criteria including having at least 3 years of operations, a minimum staff size, and commitments to job creation and investment thresholds. Not-for-profit organizations and municipal projects aimed at community economic development may also qualify.

Who is not eligible

This grant excludes certain companies and industries due to their status or main activity. The restrictions aim to ensure that funds are directed toward strategic sectors aligned with the grant's objectives.

• Companies involved in ongoing operations including maintenance and capital replacement.
• Businesses looking to refinance existing operations.
• Entities involved in acquisitions, buyouts, restructurings, or relocation within Ontario.
• Industries focused on primary production, retail, and construction, such as residential development.
• Companies providing personal services, consulting, electricity generation and waste management/recycling.
• Firms engaged in information and communication services or academic research.
• Stand-alone restaurants and hotels, unless they are transformative and a regional priority.
• Businesses in sectors that are not considered strategic or have low economic multiplier effects.

Eligible expenses

Eligible expenses for the Eastern Ontario Development Fund are those directly related to the expansion and growth of businesses through project investments.

• Investments in equipment to enhance business productivity.
• Purchase and implementation of new technologies.
• Talent acquisition and skills training for workforce development.
• Costs related to entering new markets or expanding existing operations.

Eligible geographic areas

This grant is available to companies located in specific geographical areas of Eastern Ontario. The eligible locations are aimed at promoting economic development throughout the region.

• Frontenac
• Haliburton
• Hastings
• Kawartha Lakes
• Lanark
• Leeds and Grenville
• Lennox and Addington
• Muskoka
• Northumberland
• Ottawa
• Peterborough
• Prescott and Russell
• Prince Edward
• Renfrew
• Stormont, Dundas and Glengarry

The evaluation and selection of projects for this grant are based on specific criteria to ensure they meet the program’s objectives and provide substantial benefits to the region.

• Extent to which government support improves project outcomes and/or impacts the project’s scope or timelines.
• Return on investment to Ontario.
• Broad regional economic benefits, including community needs, sector or cluster impacts, strengthening of the value/supply chain, partnerships with research institutions, and whether the company is a major employer in the region.
• Job creation outcomes including the creation of good jobs, hiring highly skilled labour, and/or involvement in partnerships with post-secondary institutions.
• Increased innovation, such as the introduction of a new product or process to the province, country, or industry, and results in new intellectual property.
• Increased productivity.
• Revenue growth, including entry into new markets.
• Assessment of project risks, including management, financial, and market risks.

Here are additional relevant details for this grant:

• Registration on TPON and consulting with a regional advisor regarding your application is recommended two weeks in advance of the application deadline for smoother processing.
• Financial statements submitted with the application should adhere to specific accounting standards, and additional standards may apply if the company is applying for a grant and has revenues under $5 million.
• Applicants can work with an external firm for application preparation, but all costs related to consultants are not eligible project costs, and the submission must be made by the applicant or an employee thereof.
• If your application is incomplete at the time of submission, the review may be deferred to the next application intake period, subject to eligibility requirements.
• Applicants are subject to compliance checks across various provincial ministries and may need to ensure ongoing compliance with laws and regulations as part of the funding agreement.
• Confidentiality and public reporting measures are part of the process, with mandatory public announcements for approved projects.
• It requires clear documentation, such as a corporate family tree and cash flow details, indicating financial stability and repayment capacity.