How much funding can be received?

This fund provides financing through performance-based loans to support business investments and economic development in Southwestern Ontario. Loans offered are tailored to foster growth, productivity improvement, and job creation.

Performance-based loan of up to 15% of eligible project costs, capped at $5 million.
Loans are interest-free during the project period, up to four years.
Up to 30% of the loan amount may be forgiven, with a cap of $500,000, if the project meets investment, job creation, and payroll targets.
Applicants must provide three years of substantive financial statements and forecasted financials demonstrating their ability to meet repayment obligations.
A loan agreement with satisfactory security to the Province is mandatory.
Financial review may include third-party due diligence at the ministry's expense.
Interest post-project completion is charged at Ontario's borrowing cost plus 3%.
Mandatory prepayments due for investment shortfalls at project completion date.
Loans can be repaid early without penalty, typically spreading principal repayments over four years post-completion.

grant_single_labels|projects

The Southwestern Ontario Development Fund supports a variety of projects focused on economic growth, productivity improvement, and market expansion. These initiatives are designed to enhance competitiveness and job creation in the region.

Investments in equipment and new technologies to enhance business productivity and growth.
Talent development and training initiatives aimed at improving workforce skills.
Establishing new operations or expanding existing ones in Eastern or Southwestern Ontario.
Introduction of new products or services, targeting new markets to foster business expansion.
Projects that generate positive regional economic impacts beyond the company involved.

grant_single|admissibleProjectsExample

$ 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

grant_single_labels|admissibility

Eligibility for the Southwestern Ontario Development Fund is based on specific criteria related to the business's characteristics and project commitments.

The business must be a for-profit legal entity registered to carry out business in Ontario.
It must have at least 3 years of substantive operating experience with financial statements meeting GAAP standards.
The business must employ at least 10 full-time equivalent (FTE) employees, or 5 FTEs if in a rural area.
It must commit to creating at least 5 new jobs or increasing the workforce by 30% if it has fewer than 15 FTEs.
The company should be located in or plan to locate in a community in southwestern Ontario.
The minimum eligible investment for the project must be $500,000, or $200,000 if classified as "small and rural."
Compliance with all applicable laws and no outstanding fees or taxes owed to His Majesty the King in right of Ontario or his agencies is required.
If previously approved for funding under the EODF or SWODF, the previous project must be successfully completed.
Maximum funding from federal and provincial sources must not exceed 50%.
The project must be in a sector that contributes to long-term economic sustainability with high multiplier effects.
Stacking with other provincial programs is not allowed, except in specific circumstances.

grant_eligibility_criteria|who_can_apply

Businesses operating in Southwestern Ontario are eligible to apply if they have at least 3 years of operational history, employ a minimum of 10 people (or 5 if in rural Ontario), commit to creating new jobs, invest a substantial amount in their project, and are situated or planning to be situated in a community within the region. Additionally, municipalities, Indigenous communities, economic development agencies, sector associations, and consortia may apply under the Community Economic Development Project Program.

grant_eligibility_criteria|who_cannot_apply

The Southwestern Ontario Development Fund specifies industries and types of projects that are not eligible for funding to ensure alignment with economic development goals. These restrictions focus on ongoing operations, refinancing, and sectors not contributing to regional growth.

Projects involving ongoing operations, such as maintenance and capital replacement.
Refinancing of existing business operations.
Business acquisitions and buyouts.
Projects involving restructuring or relocating within Ontario.
Primary production sectors.
Retail businesses.
Construction projects related to residential development.
Personal services industries.
Consulting businesses.
Electricity generation projects.
Waste management or recycling sectors.
Information and communication services.
Academic research.
Stand-alone restaurants and hotels, unless deemed transformative and of regional priority.

grant_eligibility_criteria|eligible_expenses

Eligible expenses for the Southwestern Ontario Development Fund include costs that directly contribute to business growth, expansion, and achieving project outcomes.

Investment in equipment and new technologies to enhance productivity and competitiveness.
Talent acquisition and training expenses for skills development.
Costs associated with opening new operations in Eastern or Southwestern Ontario.
Expenses related to expanding existing operations, including product or service diversification or entry into new markets.

grant_eligibility_criteria|zone

This grant is available to companies located in specific geographical areas in southwestern Ontario. The eligible locations ensure the focus is on regional economic development within these communities.

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

grant_single_labels|criteria

The evaluation and selection criteria for projects under the Southwestern Ontario Development Fund are not explicitly detailed in the provided context. However, general guidelines can be inferred based on alignment with the fund's objectives.

Alignment with the fund’s strategic objectives such as business growth, productivity improvement, and innovation investment.
Potential for job creation and economic impact in the region.
Commitment to a minimum investment amount as specified by the fund criteria.
Ability to meet the financial obligations and requirements, such as having three years of substantive financial statements.
Compliance with all legal requirements and absence of debts to the government.

grant_single_labels|register

Step 1: 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.
Step 2: 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.
Step 3: 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.
Step 4: 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.
Step 5: 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.

grant_single_labels|otherInfo

Here are additional relevant details for this grant:

Loans offered are interest-free during the project period, which can last up to four years.
If a company successfully meets its investment and job creation targets, up to 30% of the loan may be forgiven, with a cap of $500,000.
Application evaluation includes a financial assessment, requiring a positive debt service coverage ratio (DSCR) for the past three years and forecasted for the loan's term.
Applicants need to demonstrate that all required project financing, other than what is requested from the grant, is secure by the project start date.
Complimentary non-financial support includes advisory services and assistance in regulatory and compliance approvals.