Closed
Southwestern Ontario Development Fund (SWODF) — Business project loans
Last Update: March 3, 2026
Ontario, Canada
Loans to grow or expand in southwestern Ontario
Loans and Capital investments
Overview
Loans of up to $5 million for large investments that create jobs in southwestern Ontario.
At a glance
Funding available
Financing goals
- Develop employee skills
- Selling in a new market
Eligible Funding
- Maximum amount : 500,000 $
- Minimum amount : 500,000 $
- Up to 15% of project cost
Timeline
- Receipt of requests is now closed
Eligible candidates
Eligible Industries
- Manufacturing
Location
- Ontario
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- 10 employees minimum
Audience
- Rural or Northern Residents
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:
$ 2,500,000
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
Launch of a new organic food production line to meet growing demand
$ 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
$ 2,000,000
Implementation of an advanced manufacturing line to produce electric vehicle components
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
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.
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.
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.
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.
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.
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.
