
Rural Economic Development program — Economic Diversification and Competitiveness Stream
Last Update: July 22, 2025
ON, Canada
Cost-share funding for rural economic development
At a glance
Eligible Funding
- Max. $150,000
- Up to 50% of project cost
Timeline
- Receipt of requests is now closed
Financing Type
Grant and Funding
Eligible Industries
- Retail trade
- Information and cultural industries
- Arts, entertainment and recreation
- Public administration
Funds Providers
Unspecified
Program status
Closed
Overview
Receive up to $150,000 to cover a maximum of 50% of eligible project costs that remove barriers to business and job growth, support investment attraction, strengthen sector and regional partnerships, and diversify regional economies in rural Ontario.
Financing terms and conditions
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.
Activities funded
The Economic Diversification and Competitiveness Stream under the RED program supports projects that aim to enhance economic growth and job creation in rural Ontario. The eligible activities focus on business development, community revitalization, worker attraction, and cross-sector collaboration.
- Projects supporting entrepreneurship and business succession like mentorship programs and succession planning assistance.
- Business retention and expansion activities such as business data collection and implementing action plans to support local companies.
- Downtown revitalization initiatives involving customer traffic growth and business attraction through marketing efforts.
- Technology adoption projects that facilitate digital training and improve business digital capabilities.
- Strategies targeting the attraction and retention of workers, including marketing campaigns and workforce policy improvements.
- Collaborative marketing efforts promoting tourism or investment across regional communities.
- Sector and value chain development projects that foster collaboration and specialized training across different economic sectors.
Examples of admissible projects:
$ 75,000
Rehabilitate a local heritage site to boost cultural tourism and community engagement
$ 37,500
Create a collaborative marketing campaign to boost tourism in the region
$ 60,000
Establish a technology adoption initiative for local manufacturers to increase productivity
$ 50,000
Launch a downtown revitalization project to repurpose vacant buildings into coworking spaces
$ 75,000
Redevelop an underutilized building into an arts and culture community center
$ 50,000
Develop a training program to attract and retain skilled workers in the tech sector
Eligibility
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.
Selection criteria
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.
How to apply
1
Review Program Guidelines
- Read the RED program guidelines to understand eligibility, program funding, and application requirements.
- Ensure your organization and project meet all the specified criteria.
2
Develop Project Proposal
- Identify the appropriate program stream for your project: Economic Diversification and Competitiveness Stream or Strategic Economic Infrastructure Stream.
- Prepare a proposal detailing objectives, anticipated outcomes, and the economic impact on rural Ontario.
- Identify necessary partnerships or collaborations to strengthen your application.
3
Prepare Documentation
- Compile required documentation, including project budget, timelines, and any existing strategic or business plans.
- Collect supporting materials such as letters of support from partners or stakeholders.
4
Application Submission
- Submit the application through the designated platform or mailing address as specified in the program guidelines.
- Ensure all sections of the application form are complete and accurate before submission.
5
Receive Confirmation
- Await confirmation from the RED program on receipt of your application.
- Retain confirmation details for your records, which might include an application reference number.
6
Communication and Follow-up
Monitor communication from the RED program for any further requirements or updates regarding your application status.
Additional information
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.
Frequently Asked Questions about the Rural Economic Development program — Economic Diversification and Competitiveness Stream Program
Here are answers to the most common questions about the Rural Economic Development program — Economic Diversification and Competitiveness Stream. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Rural Economic Development program — Economic Diversification and Competitiveness Stream?
How much funding can be received?
What is the deadline to apply?
Is the Rural Economic Development program — Economic Diversification and Competitiveness Stream a grant, loan, or tax credit?
Who are the financial supporters of the Rural Economic Development program — Economic Diversification and Competitiveness Stream?
Who is eligible for the Rural Economic Development program — Economic Diversification and Competitiveness Stream program?
Who can I contact for more information about the Rural Economic Development program — Economic Diversification and Competitiveness Stream?
Where is the Rural Economic Development program — Economic Diversification and Competitiveness Stream available?
Are startups eligible for the Rural Economic Development program — Economic Diversification and Competitiveness Stream program?
Are Indigenous Peoples eligible for the Rural Economic Development program — Economic Diversification and Competitiveness Stream program?

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