Funding for businesses in southern Ontario: How funding works

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3. How funding works

All funding is project-based, meaning that it must result in incremental outcomes for the applicant linked to Government of Canada priorities and is subject to a set of funding rules and reporting requirements.

An application does not constitute a commitment from FedDev Ontario for financial assistance.

If an application for project funding receives approval, you will be expected to sign a legally binding contribution agreement before funding can be provided.

Funding parameters

Funding parameter Funding parameter description
Funding amounts Applicants normally request a minimum of $125,000 up to a maximum of $10 million per project in repayable contribution funding.
Matching requirement (cost sharing)

Eligible project costs are shared between you and FedDev Ontario.

  • Normally, the maximum rate of support from FedDev Ontario is 50% of eligible project costs. FedDev Ontario funding is not intended to replace available commercial financing or other sources of funding. Preference will be given to projects that maximize funding from other sources (i.e., where FedDev Ontario’s contribution is less than 50%).
  • Your sources of funding (i.e., 50% or more of eligible project costs) can consist of cash contributions from your own business and other partners (e.g., private sector lenders, other government fundingFootnote 1).
Eligible costs

New costs essential to the project, such as labour, expertise and equipment costs. Refer to the Application Guide for details on cost categories.

Ineligible costs

Costs deemed unreasonable, non-incremental and/or not directly related to project activities, for example: land and buildings, basic & applied research and development, refinancing of existing debts and more. Refer to the Application Guide for details on cost categories.

Project timeframe

Project start dates may vary. Proposed activities and related costs cannot begin before the date the application intake closes.

Projects, activities and budgets can span more than 1 fiscal year. On average, projects span between 1-3 years.

Repayment terms

Interest-free and unconditionally repayable.

Should your project be approved, repayment will normally begin 1 year after the completion of the project. The schedule of payments will be set out in your contribution agreement.

There is no penalty for early repayment.

Key funding conditions

  • The contribution amount is subject to availability of funding. FedDev Ontario reserves the right to make the final determination on the value of the contribution. FedDev Ontario's funding contribution is based on a number of factors, including the minimum amount required for the project to proceed, the extent to which other available funding sources have been leveraged, and the applicant's ability to repay the contribution.
  • If a project is approved, you will be expected to sign a contribution agreement within 30 days of being notified, including confirming all sources of the matching funding (e.g., bank statements, term sheets, letters of conditional funding, other government funding).
  • Funding will be reimbursed based on approved costs incurred and claimed throughout the project's duration.

Important Note

  • Financial assistance may have tax implications for your business. It is recommended that applicants obtain advice from a qualified tax professional to determine the full implications of receiving funding.