Southwestern Ontario Development Fund (SWODF) — Business project loans

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Who is eligible for the Southwestern Ontario Development Fund (SWODF) — Business project loans program?

To be eligible for the Southwestern Ontario Development Fund (SWODF) — Business project loans program, you must: • At least 3 years of operations/financial statements • Minimum 10 full-time employees (or 5 if in rural Ontario) • Minimum eligible project investment of $500,000 (or $200,000 if rural)

Q: Who can I contact for more information about the Southwestern Ontario Development Fund (SWODF) — Business project loans?

You can contact Government of Ontario.

Q: Where is the Southwestern Ontario Development Fund (SWODF) — Business project loans available?

The Southwestern Ontario Development Fund (SWODF) — Business project loans program is available the province of ON.

Last Update: July 22, 2025

ON, Canada

Loans to grow or expand in southwestern Ontario

At a glance

Eligible Funding

From $500,000 to $500,000
Up to 15% of project cost

Timeline

Receipt of requests is now closed

Financing Type

Loans and Capital investments

Eligible Industries

Manufacturing

Funds Providers

Unspecified

Program status

Closed

Overview

Loans of up to $5 million for large investments that create jobs in southwestern Ontario.

Financing terms and conditions

Loans of up to 15% of eligible project costs, to a maximum of $5 million, interest free for up to 4 years.
Up to 30% of the loan, to a maximum of $500,000, may be forgiven if investment and job targets are met.
Grants of up to 15% to a maximum of $500,000 for companies with fewer than 100 employees based in rural Ontario.
Grants of up to 15% to a maximum of $1,500,000 for strategic projects involving foreign direct investment or significant jurisdictional competition.

Activities funded

Investing in equipment, new technologies, talent, and training to enhance business productivity and competitiveness.
Launching new operations within Southwestern Ontario.
Expanding existing operations to support business growth or the introduction of new products, services, or accessing new markets.

Examples of admissible projects:

$ 2,000,000

Launch of a new organic food production line to meet growing demand

$ 2,500,000

Expansion of a renewable energy facility to increase production capacity and generate new jobs

$ 3,000,000

Upgrade of transportation infrastructure to support local businesses and reduce traffic congestion

$ 2,000,000

Implementation of an advanced manufacturing line to produce electric vehicle components

$ 3,000,000

Development of a high-tech incubator to support local startups and create high-skilled jobs

$ 2,000,000

Construction of a community-based cultural center to promote local arts and culture

Eligibility

The applicant must be a for-profit business (legal entity) registered to operate in Ontario.
The business must have at least 3 years of operations, supported by financial statements prepared according to GAAP standards.
The company must employ a minimum of 10 full-time equivalent (FTE) employees, or 5 FTEs if located in a rural municipality (population under 100,000 or population density under 100 per km²).
The business must be located in, or plan to locate in, a community within southwestern Ontario.
The project must aim to create at least 5 new jobs (or a 30% increase in workforce for companies with fewer than 15 employees) as a direct result of the investment.

Who is eligible?

For-profit businesses with at least 3 years of operations
Businesses located in, or planning to locate in, a southwestern Ontario community
Businesses seeking to expand through investments in equipment, technology, talent, or training
Companies expanding existing operations, launching new operations, or entering new markets in eligible regions
Organizations operating in sectors that contribute to long-term economic sustainability (excluding ineligible sectors such as retail, primary production, and construction)

Who is not eligible

Companies engaged in retail operations.
Businesses primarily involved in primary production activities.
Organizations focused on construction, such as residential development.
Enterprises providing personal services, consulting, or academic research.
Stand-alone restaurants and hotels (unless transformative and considered a regional priority).

Eligible expenses

Investments in equipment and new technologies.
Talent acquisition and training costs.
Expenses for enhancing business productivity and competitiveness.
Expenditures related to expanding or establishing new operations in Southwestern Ontario.
Costs for introducing new products, services, or accessing new markets.

Eligible geographic areas

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

Selection criteria

Alignment with the fund’s goals of investment attraction and job creation in the region.
Provision of economic benefits, such as new job creation or contributions to the region or sector development.
Project achievability, including demonstrable capacity in financing, project management, and relevant experience to implement the initiative successfully.

How to apply

Discuss Project with Regional Advisor

Contact a regional advisor to discuss your project idea and assess its fit with the program.
Receive guidance on eligibility and application preparation from the regional advisor.

Preliminary Registration on TPON

Register your organization on the Transfer Payment Ontario (TPON) system.
Ensure registration is completed at least two weeks before the application deadline.

Prepare Application

Gather all necessary documents including three years of financial statements and details of your project plan.
Prepare a comprehensive proposal addressing objectives such as business growth, productivity improvement, or innovation.
Ensure financial documents meet GAAP standards.

Submit Application

Log into TPON to complete the online application form.
Upload all required documents and financial statements.
Review the application for completeness and accuracy.
Submit the application by the deadline for the current application intake period.

Receive Notification

Await notification of application decision, which occurs approximately 60 business days after the deadline.
Keep track of the notification date based on the application period you applied for.

Additional information

There are four application intake periods each year, with notification typically given within 60 business days of the application deadline.
The project start date must be after the application period close date, and projects must span between 3 and 4 years.
Applicants must demonstrate compliance with all relevant laws and not owe fees or taxes to the Province of Ontario.
For loan applications, financial materials must show a positive debt service coverage ratio in the previous three years and forecasted over the loan term.

Documents and links

Southwestern Ontario Development Fund (SWODF) — Business project loans

Apply to this program

Frequently Asked Questions about the Southwestern Ontario Development Fund (SWODF) — Business project loans Program

Here are answers to the most common questions about the Southwestern Ontario Development Fund (SWODF) — Business project loans. 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.