Eastern Ontario Development Fund (EODF) — Business project loans

• A completed application form
• A cash flow forecast with sufficient detail on receipts and payments during the project period and the four-year loan repayment period
• A copy of articles of incorporation and/or letters patent
• A corporate family tree showing the parent, affiliates, and related entities of the applicant and their relationships
• Financial statements from the last three fiscal years

Who is eligible?

• Incorporated for-profit businesses (legal entities) registered to carry out business in Ontario for business projects
• Municipalities, not-for-profit organizations, economic development organizations, and sector organizations for community economic development projects
• Indigenous communities, economic development agencies, sector associations, and consortia may be eligible under the Community Economic Development Project Program

Who is not eligible

• Sole proprietorships
• Charities
• Distributors
• Start-ups
• Companies related to a current recipient through a parent or ownership

Eligible expenses

• Construction, project facility modifications or upgrades, and site servicing or power service upgrades required to execute the project
• Equipment and machinery necessary for the successful completion of the project, including new technology and new high-performance equipment and machinery
• One-time labour directly related to project costs and incremental specialized labour directly related to the project
• Direct materials necessary for the completion of the project, including materials used for configuring and testing production processes and systems, training employees, and prototypes
• Specialized expertise, skills training and related training materials or infrastructure, and permits, inspections, and other fees directly attributable to the project

Ineligible Costs and Activities

• Ongoing operations including maintenance and capital replacement, and ongoing operational or production labour costs
• Refinancing existing business operations, acquisitions and buyouts, restructurings, relocations to other jurisdictions within Ontario, and mergers and acquisitions
• Projects in 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
• Purchase of land or buildings, landscaping and staff parking lots, and the purchase, lease, or operation of vehicles or off-site equipment
• Materials used for regular production of saleable items, wages of staff while receiving training, training costs supported by Ministry of Labour, Training and Skills Development, and non-project costs such as proposal preparation, travel, hospitality, debt service, taxes, and legal fees

Eligible geographic areas

• Eastern Ontario
• 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

• Priority will be given to projects that generate regional economic impacts beyond the company.
• Applications will be assessed based on alignment with program objectives and their relation to other projects under consideration, with a focus on regional economic development benefits.
• For loans, the applicant must have secured all finances required to complete the project, or ensure they will be secured before the project begins.
• For loans, the applicant must demonstrate a positive debt service coverage ratio in the previous three years and forecast a positive debt service coverage ratio over the term of the loan.

• Speak with a Regional Advisor about your project.
• Register for TPON and follow the prompts to find the program under the “Submit for Funding” section.
• Download the application form and complete each section, as required.
• If you are eligible according to Part 1, complete the application and upload the completed form and all supporting documents on TPON.
• Make sure that the application form is authorized by an individual with authority to bind the company.

• If approved, applicants must enter into a funding agreement with the Province of Ontario before any payments are made.
• No disbursements will be made until the funding agreement has been signed and disbursement conditions have been fulfilled, including proof of project financing and proof of insurance with a minimum of $2 million.
• Disbursements are made in arrears in annual instalments subject to an annual cap set by the Government of Ontario; at Ontario’s sole discretion, an initial payment of up to 20% of the support may be made once conditions of disbursement have been met.
• Applicants must meet annual reporting requirements including providing financial statements; for grants, a performance payment, usually 20% or more of total funding, is disbursed after project completion and final reporting requirements are received to Ontario’s satisfaction.
• Funding agreements include commitments related to project investment and jobs, with clawbacks for grants or reductions to the forgivable portion of loans if targets are not achieved by the required date.

• Registration on TPON and consulting with a regional advisor are advised two weeks in advance of the application deadline.
• Applications are assessed only if they are submitted by the application close date and deemed complete.
• Applications may be deferred to the next intake period if incomplete or if there is a material change to the project after the application period.
• Approved projects are subject to compliance checks and public reporting obligations.