INVEST North Program — Investment - Locate Stream
ON, Canada
The Locate Stream program supports new business setups in Northern Ontario with funding up to $5 million, focusing on infrastructure and technology investments to stimulate economic growth.
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Northern Ontario Heritage Fund Corporation (NOHFC)
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Investment - Locate Stream of NOHFC assists businesses setting up new operations in Northern Ontario by providing up to $5 million in funding through conditional contributions or loans. Eligible projects include infrastructure development, equipment procurement, and ICT investments. Applications undergo an evaluation focusing on job creation, economic impact, and the strength of the business plan.
grant_single_labels|projects
There are several projects or activities eligible for this grant.
- Capital construction
- Leasehold improvements
- New or used equipment including capital leases
- 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)
grant_single|admissibleProjectsExample
$3,500,000
Sault Ste. Marie
Launch a new tech innovation hub in Sault Ste Marie
$1,300,000
North Bay
Open a new artisan bakery and café
$1,300,000
Kenora
Start a community arts center to support local artists
$3,000,000
Thunder Bay
Develop a new eco-friendly packaging plant
$1,400,000
Timmins
Expand a local brewery by adding a new bottling line
$1,200,000
Sudbury
Establish a cooperative organic farm
grant_single_labels|admissibility
This grant is available for businesses locating new business operations to Northern Ontario. Eligible projects include specific types of capital construction, leasehold improvements, and other defined investments.
- Businesses locating new business operations to Northern Ontario
- Capital construction
- Leasehold improvements
- New or used equipment including capital leases
- 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)
grant_eligibility_criteria|who_can_apply
Yes, there are eligible types of companies for the Invest North - Locate Stream grant. Businesses must be locating new operations in Northern Ontario to qualify for the funding.
- Businesses locating new business operations to Northern Ontario
- Tourism businesses that operate as a tourist destination for local, regional, and international visitors for extended stays (e.g., remote outfitter, family vacation resort)
grant_eligibility_criteria|who_cannot_apply
Certain types of companies are not eligible for the grant under the Invest North – Locate Stream.
- Retail and consumer service businesses that primarily earn revenue by providing products and services directly to individuals
- Accommodation and food service businesses and related business activities
- Businesses that are primarily involved in wholesale activities
- Beverage alcohol manufacturing companies, including spirit distilleries, breweries, wineries, and cideries
grant_eligibility_criteria|eligible_expenses
Yes, there are eligible expenses for this grant.
- Capital construction
- Leasehold improvements
- New or used equipment including capital leases
- 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)
grant_eligibility_criteria|zone
The grant is available for businesses looking to locate new business operations in Northern Ontario. Eligible geographic zones encompass all regions within Northern Ontario.
- Northern Ontario
grant_single_labels|criteria
Yes, there are evaluation and selection criteria for this grant. The key factors considered during the application evaluation process include job creation, level of investment from other sources, the strength of the business plan, impacts on existing businesses, and the net economic benefits for Northern Ontario.
- Job creation
- Level of investment from other sources to be secured by the applicant
- Strength of the applicant’s detailed business plan
- Does not unreasonably impact existing Northern Ontario businesses
- Net economic benefits for Northern Ontario
grant_single_labels|register
- Step 1: Schedule a pre-application consultation session with NOHFC staff by contacting 1-800-461-8329.
- Step 2: During the pre-application consultation, discuss potential funding options and confirm project eligibility.
- Step 3: Submit an initial application online to determine preliminary eligibility under the program guidelines.
- Step 4: If the project is deemed eligible, submit a detailed business proposal for further evaluation.
- Step 5: Await notification regarding funding approval and specific terms of the conditional contribution and/or term loan.
grant_single_labels|otherInfo
Below is some additional information about the Invest North program and eligibility criteria.
- Applicants are required to have a pre-application consultation session with NOHFC staff prior to applying.
- Combined Federal and Provincial government funding may not exceed 50% of eligible project costs.
- Funding to locate operations in Northern Ontario can be conditional contribution, term loan, or a combination, based on net economic benefit to Northern Ontario (max $5 million).
- Factors considered during evaluation include job creation, investment level from other sources, strength of business plan, and net economic benefits for Northern Ontario.
- Ineligible costs include retail and consumer service businesses, ongoing operating costs, restructuring/refinancing, accommodation & food service businesses, wholesale activities, and several other categories.
- Tourism businesses that operate as tourist destinations for extended stays are potentially eligible, while those serving only the overnight travelling public are not.
- Projects developing land for re-sale or lease, infrastructure for leasing/sale, and standalone site servicing are not eligible.
grant_single_labels|contact
1-800-461-8329
Apply to this program
Invest North Program – Locate Stream: Funding for Businesses Relocating to Northern Ontario
The Invest North Program’s Locate Stream provides financial incentives for businesses establishing new operations in Northern Ontario, supporting projects with up to $5 million in conditional contributions or a combination of contributions and term loans. Eligibility criteria emphasize economic benefits, job creation, and sustainable investment, with the expectation that proposed projects will not negatively impact existing businesses in the region.
Detailed Overview of the Invest North Program – Locate Stream
The Invest North Program, administered by the Northern Ontario Heritage Fund Corporation (NOHFC), is designed to boost economic development in Northern Ontario. Among its various streams, the Locate Stream specifically targets businesses that plan to establish new operations in the region. This initiative offers substantial financial support in the form of conditional contributions and term loans, aiming to create job opportunities, stimulate economic growth, and encourage investment from diverse sources. Below, we will delve into the details of this grant program, including eligibility criteria, funding specifics, and the application process.
Eligibility Criteria
For businesses interested in the Invest North Program’s Locate Stream, understanding the eligibility requirements is crucial. The primary criteria are as follows:
- Businesses Locating to Northern Ontario: Companies must be initiating new business operations in Northern Ontario to qualify.
- Type of Projects: Eligible projects include capital construction, leasehold improvements, procurement of new or used equipment, land servicing costs, ICT investments, and marketing initiatives for new products and business undertakings. Specific caps apply to marketing costs (20% of other project costs or $75,000, whichever is less) and training costs with third parties (also limited to 20% of other project costs).
- Evaluation Criteria: Applications will be assessed based on factors like job creation potential, the level of investment from other sources, the strength of the business plan, and the net economic benefits for Northern Ontario. Projects should not unreasonably impact existing regional businesses.
Funding Details
The investment provided through the Locate Stream varies depending on the specifics and economic impact of the project:
- Maximum Funding: The program offers funding up to $5 million, distributed either as a conditional contribution or a combination of conditional contributions and term loans. The exact funding mix and amount depend on the net economic benefits projected from the proposed project.
- Funding Limitations: Combined federal and provincial government funding cannot exceed 50% of the eligible project costs.
- Pre-application Consultation: Applicants are required to engage in a pre-application consultation with NOHFC staff to discuss project details and funding options. This consultation is an essential step before the formal application process.
Ineligible Projects and Costs
Several types of projects and costs are deemed ineligible for funding under this program. These include, but are not limited to:
- Retail and consumer service businesses primarily serving individuals.
- Ongoing operating costs, maintenance expenses, and in-kind contributions.
- Restructuring or refinancing of existing business operations.
- Accommodation and food service businesses.
- Wholesale trade businesses.
- Assets acquired through operating leases, research and development, land purchase/lease.
- Rolling stock (cars, trucks, boats, and motors), project management, consulting, and management costs.
- Minerał exploration, mine development, and milling operations.
- Working capital, cost of inventory, and projects primarily involving cellular and internet services.
- Capital projects or leasehold improvements for residential or personal properties.
- The acquisition or buy-out of existing businesses.
- Electricity generation projects.
However, NOHFC may make exceptions for projects addressing a priority economic need in Northern Ontario.
Application Process
The application process for the Invest North Program’s Locate Stream involves multiple steps:
- Pre-application Consultation: Contact NOHFC at 1-800-461-8329 to schedule a pre-application consultation. A staff member from the Ministry of Energy, Northern Development, and Mines (ENDM) will be assigned to your file and guide you through this pre-consultation phase.
- Initial Application: Following the consultation, submit an initial application online. This application determines the project’s eligibility based on program guidelines. If the project is found eligible, you will be asked to submit a detailed business proposal.
Having a detailed and robust business plan is critical for the success of your application. This plan should clearly outline the project scope, investment details, projected job creation, and overall economic benefits to Northern Ontario. It should also demonstrate how the project fits within the region’s economic landscape without negatively impacting existing businesses.
Evaluation of Applications
NOHFC evaluates applications based on several criteria to ensure the projects funded contribute significantly to Northern Ontario’s economic development:
- Job Creation: Projects must show a clear potential for creating new employment opportunities in the region.
- Investment Level: The application must detail investments secured from other sources. Higher levels of secured investment can strengthen the application's prospects.
- Business Plan Strength: A well-constructed and thorough business plan is essential. It should precisely map out the project’s goals, strategies, and expected outcomes.
- Economic Benefits: The project should promise net economic benefits to Northern Ontario, enhancing the regional economy without imposing unreasonable competition on existing businesses.
- Sustainability: Projects are assessed for their long-term viability and potential for sustainable growth.
Additional Considerations
While the grant itself provides significant financial backing, applicants should be aware of the following additional considerations:
- Funding Balance: Applicants must secure the remaining funding necessary to implement the project successfully. This balance could come from private investments, federal or provincial funds (up to the cap of 50%), or other financial sources.
- Asset Reimbursement: There could be a requirement to reimburse NOHFC if assets financed by the grant are sold after the project's completion.
- Limited Funding Availability: While the program offers substantial funds, limited availability means not all eligible projects may receive funding. The final funding decision is at the discretion of the NOHFC Board of Directors.
Frequently Asked Questions
To further assist potential applicants, here are some frequently asked questions regarding the Invest North Program’s Locate Stream:
- Q: Are beverage alcohol manufacturing companies eligible?
- A: No, beverage alcohol manufacturing companies (e.g., spirit distilleries, breweries, wineries, cideries) are not eligible. Instead, they can seek support from Ontario's Ministry of Agriculture, Food, and Rural Affairs.
- Q: Can additional federal or provincial funding be accessed?
- A: Yes, but the combined federal and provincial funding must not exceed 50% of the eligible project costs.
- Q: Are tourism businesses eligible despite accommodation services being ineligible?
- A: Yes, tourism businesses that operate as tourist destinations for extended stays (e.g., remote outfitters, family vacation resorts) are eligible. Businesses that only serve overnight travelers (e.g., hotels, motels) are considered ineligible.
- Q: Are projects involving land development for resale or lease eligible?
- A: No, projects focused on commercial land, industrial land, and building development for lease or sale are ineligible. This includes stand-alone site servicing and site development costs.
Conclusion
The Invest North Program's Locate Stream is a significant opportunity for businesses looking to expand into Northern Ontario. By offering substantial financial support contingent on job creation, sustainable investment, and net economic benefits, the program aims to foster regional economic growth. Businesses interested in this funding opportunity must carefully review the eligibility criteria, prepare a detailed business plan, and secure the necessary pre-application consultation. While the application process is rigorous, the potential benefits in terms of funding and regional development make it a valuable endeavor for businesses committed to establishing a strong presence in Northern Ontario.
