Southwestern Ontario Development Fund (SWODF) — Business Project Grants

• Completed application form.
• Cash flow forecast or a cash flow that provides sufficient detail on receipts and payments during the project period and, for loans, the repayment period.
• Copy of articles of incorporation and/or letters patent.
• Corporate family tree for business stream projects.
• Financial statements from the last three fiscal years.

Who is eligible?

• Existing for-profit businesses registered to carry out business in Ontario.
• Municipalities and Indigenous communities.
• Not-for-profit organizations, including economic development organizations, economic development agencies, sector organizations, sector associations and consortia.
• Business applicants located in, or planning to locate in, a community in southwestern Ontario.

Who is not eligible

• Start ups are not eligible.
• Businesses in primary production or retail are not eligible.
• Businesses in construction, personal services, consulting, electricity generation, waste management, recycling, information and communication services, or academic research are not eligible.
• Stand-alone restaurants and hotels are not eligible unless they are transformative and considered a regional priority.

Eligible expenses

• Construction and project facility modifications or upgrades.
• Site servicing and power service upgrades.
• Equipment and machinery needed for the project.
• Direct labour, materials, and specialized expertise tied to the project.
• Training and talent-related costs.

Ineligible Costs and Activities

• Ongoing operations, including maintenance and capital replacement, and ongoing production or operational labour costs.
• Refinancing of existing business operations, acquisitions and buyouts, and restructurings or relocations to other jurisdictions within Ontario.
• Purchase of land or buildings, landscaping, and staff parking lots.
• Acquisition of paid media space, travel and hospitality.
• Replacement capital equipment, including office technology used for regular administration, and the purchase, lease or operation of vehicles or off-site equipment.

Eligible geographic areas

• Brant
• Bruce
• Chatham-Kent
• Dufferin
• Elgin
• Essex
• Grey
• Haldimand
• Huron
• Lambton
• Middlesex
• Niagara
• Norfolk
• Oxford
• Perth
• Simcoe
• Waterloo
• Wellington

• Applications are assessed based on alignment with program objectives.
• Applications are assessed in relation to other projects under consideration, with a focus on regional economic development benefits.
• Priority will be given to projects that generate regional economic impacts beyond the company.

• Step 1: Speak with a regional advisor
  • Discuss your project before applying.
• Step 2: Register on TPON
  • Access the application form through Transfer Payment Ontario.
• Step 3: Complete the application
  • Fill in Part 1 and, if eligible, Part 2.
  • Upload the completed form and supporting documents in TPON.
• Step 4: Submit before the deadline
  • Send the full application during the intake period.

• Only applications submitted by the application close date and deemed complete will be assessed.
• If approved, the recipient must enter into a funding agreement with the Province of Ontario before any payment is made.
• Before disbursements, recipients must have project financing in place and provide proof of insurance of at least $2 million; other disbursement conditions may also apply.
• Disbursements are generally made in arrears in annual instalments subject to annual caps set by the Government of Ontario, and an initial payment of up to 20% may be made at Ontario’s sole discretion once conditions are met.
• For grants, a performance payment, usually 20% or more of total funding, is paid after project completion and final reporting is received to Ontario’s satisfaction; funding agreements also include commitments and clawback or forgiveness adjustment provisions tied to investment and jobs.

• Applicants must speak with a regional advisor before applying.
• Decision notifications are typically issued within about 60 business days after the deadline.