INVEST North Program — Investment – Locate Stream

This program offers flexible financing modalities to support businesses in establishing new operations in Northern Ontario, emphasizing projects with strong economic benefits. The specific terms can vary based on the project's alignment with strategic priorities.

• Conditional contributions or a combination of conditional contributions and term loans, tailored on a case-by-case basis.
• Funding is determined by the potential net economic benefit to Northern Ontario, with a maximum funding cap of $5 million per project.
• Combined federal and provincial government funding must not exceed 50% of the eligible project costs.
• Funding decisions are made by the NOHFC Board of Directors, considering available resources and strategic economic priorities.

Eligibility for this grant is determined by specific requirements regarding business location and type of operations in Northern Ontario.

• Businesses must be locating new business operations to Northern Ontario.

Who is eligible?

Businesses locating new business operations to Northern Ontario.

Who is not eligible

The NOHFC Invest North – Locate Stream grant has specific exclusions for certain types of companies and industries based on their business activities. These restrictions are designed to focus funding on sectors that align with Northern Ontario's economic development goals.

• Retail and consumer service businesses that primarily earn revenue by providing products and services directly to individuals.
• Accommodation and food service businesses and related activities.
• Businesses primarily involved in wholesale activities.
• Beverage alcohol manufacturing companies, including spirit distilleries, breweries, wineries, and cideries.
• Organizations involved in rolling stock, such as cars, trucks, boats, and motors.
• Projects related to mineral exploration, mine development, and milling operations.
• Electricity generation projects.
• Companies focused on land purchase/lease or capital projects to residential or personal properties.
• Businesses planning restructuring or refinancing of existing operations.
• Projects involved in research and development or acquisition and buy-outs of existing businesses.

Eligible expenses

The grant supports costs associated with establishing new business operations in Northern Ontario.

• Capital construction
• Leasehold improvements
• Land servicing costs
• Information & communications technology (ICT) investments
• Marketing for new products and business initiatives (limited to a maximum of 20% of all other eligible project costs, or $75,000, whichever is less)
• Training costs incurred with third parties (limited to a maximum of 20% of all other eligible project costs)

Eligible geographic areas

This grant is available to companies locating new operations to the Northern Ontario region of Canada. The eligible locations are intended to enhance economic development within Northern Ontario.

• New business operations located within Northern Ontario.

The evaluation and selection of projects for this grant focus on various criteria to determine their potential impact and alignment with the objectives of the NOHFC.

• Job creation potential associated with the proposed project.
• Level of investment from other sources that the applicant can secure.
• Strength and detail of the applicant's business plan.
• Assessment of the project's impact on existing Northern Ontario businesses to ensure no unreasonable negative effects.
• Net economic benefits for Northern Ontario arising from the project.
• Other business activities that could lead to economic development advantages for Northern Ontario, at the discretion of the NOHFC Board of Directors.

Here are additional relevant details for this grant:

• Funding can be provided as a conditional contribution or combined with a term loan, determined by the NOHFC based on the project's economic benefit.
• The NOHFC requires applicants to secure other funding to cover project costs not funded by the government.
• Projects which involve the sale of financed assets post-completion may require reimbursement to NOHFC.
• Combined federal and provincial funding for any project cannot surpass 50% of the project's eligible costs.
• Special exceptions to criteria may occur for projects fulfilling priority economic needs in Northern Ontario.
• All applicants must undertake a pre-application consultation to determine funding options.