Rural Economic Development program — Economic Diversification and Competitiveness Stream

The Rural Economic Development program under the Economic Diversification and Competitiveness Stream offers structured funding to support rural communities in Ontario. The modalities ensure shared financial responsibility between the grant provider and recipients to maximize economic impact.

• Cost-share funding up to 50% of eligible project expenses, with a maximum contribution of $150,000.
• Payments based on eligible project costs as detailed in the application.
• Potential for reduced funding amounts or percentages, respecting stream-specific limits.
• Requirement to enter a contribution agreement with the Province of Ontario.
• All costs for projects must be non-capital in nature.
• No increase in the maximum eligible costs once established.
• The project duration cannot be extended without prior written approval from OMAFRA.

Eligibility for this grant requires applicants to meet specific organizational criteria.

• The applicant must be a municipality.
• The applicant must be a not-for-profit entity.
• The applicant must be an Ontario Indigenous community or organization.
• The applicant must be a Local Services Board.

Who is eligible?

To be eligible to apply for the Economic Diversification and Competitiveness Stream of the Rural Economic Development program, applicants must be one of the following:- A municipality in Ontario- A not-for-profit entity- An Indigenous community or organization in Ontario- A Local Services Board in Ontario. These entities must aim to engage in projects that position rural communities to attract and retain jobs, foster investment, and enhance economic growth through eligible non-capital project types.

Who is not eligible

There are specific types of companies that are not eligible for this grant.

• For-profit businesses

Eligible expenses

The Economic Diversification and Competitiveness Stream covers a range of non-capital expenses that align with the goal of supporting rural economic development projects.

• Coaching and mentorship services for business succession and start-up projects.
• Costs related to familiarization tours to connect business buyers with retiring owners.
• Activities associated with the collection of business and market data.
• Development and implementation of action plans for business retention and expansion.
• Marketing activities to attract new businesses to downtown areas.
• Digital training and support services aimed at improving digital capabilities.
• Coordination services for business approvals like licensing and permits.
• Implementation of workforce attraction marketing campaigns.
• Costs for career days/events designed to attract workers.
• Network development activities for service providers and businesses.
• Sector or value chain development activities, such as buyer-seller forums and specialized business training.

Eligible geographic areas

This grant is available for entities operating within specific geographical areas in Ontario, Canada. Eligibility is limited to rural communities in Ontario to ensure the alignment with the Rural Economic Development program’s goals.

• Rural communities in Ontario, Canada.

The evaluation and selection of projects under the Rural Economic Development program’s Economic Diversification and Competitiveness Stream are based on specific criteria to ensure projects contribute to the economic growth and development of rural Ontario.

• Basic eligibility criteria, including the requirement that projects take place in and benefit rural Ontario.
• Alignment with the RED program’s outcomes.
• Collaboration and partnerships involved in the project.
• Efforts to reduce economic barriers.
• Potential regional, sector, or value chain impacts.
• Comprehensiveness of the project work plan.
• Project budget, focusing on reasonable and eligible project costs.
• Financial commitment from the applicants.
• Sustainability of the project beyond the timelines.
• Project oversight and management capabilities.

Here are additional relevant details for this grant:

• The RED program is currently closed and is not accepting applications.
• Applicants must enter into a contribution agreement with the Province of Ontario if selected.
• Funding may be provided at a reduced amount or percentage than requested.
• The project’s maximum eligible costs cannot be increased, and the timeframe cannot be extended without written approval.
• The lead applicant is notified of funding decisions usually within 3 months from the intake closure.