Southern Ontario Spotlight - December 2020

Increasing the representation and inclusion of underrepresented groups is essential to Canada’s prosperity.

On November 23, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, announced that applications are now being accepted for the Black Entrepreneurship Program’s National Ecosystem Fund and Knowledge Hub. The National Ecosystem Fund will provide funding to Black-led not-for-profit business organizations to strengthen their capacity to provide support, financial planning services and business training for Black entrepreneurs and business owners. The Knowledge Hub will gather data on Black entrepreneurship in Canada to help identify critical gaps, barriers to success and opportunities for growth. The National Ecosystem Fund will be administered by the regional development agencies, with FedDev Ontario supporting southern Ontario candidates throughout the proposal development process. For more information or to apply, visit the Black Entrepreneurship Program webpage.

Earlier in the month, Arif Virani, Member of Parliament for Parkdale–High Park, on behalf of the Minister of Economic Development and Official Languages and Minister responsible for FedDev Ontario Mélanie Joly, announced an investment of $750,000 for Parkdale Centre for Innovation, a not-for-profit incubator and accelerator focused on inclusion and equity, to expand its entrepreneurship programming. Over 200 businesses will have access to increased specialized training, mentorship, peer support networks and pathways to entrepreneurial opportunities.

The Government of Canada also continues to encourage inclusive growth through the 50-30 challenge. A joint initiative between the Government of Canada, business, and diversity organizations, this challenge seeks to improve access for racialized persons, people who identify as LGBTQ2, people living with disabilities, as well as First Nations, Inuit and Métis peoples, to positions of influence and leadership on corporate boards and in senior management.

FedDev Ontario is pleased to share that many of the businesses and ecosystem partners we have supported have signed the pledge, including funding recipient Reko International Group Inc. Diane Reko, CEO of the Lakeshore-based manufacturer, took over the family business in 2007, building on the strong leadership of her father who started the company in 1976. As one of few female CEOs in a male-dominated sector, Diane considers the team she has built as one of her greatest achievements. The Reko team is comprised of several women, specifically on the Executive Leadership Team. The goal is to create an inclusive workplace, regardless of gender, ethnicity, age, etc. Diane prides herself on a culture that embraces innovation, and she and her team of 200 strive to strengthen communities by advancing manufacturing. As the company embarks on the 50-30 challenge, its priorities will be to increase corporate diversity at all levels within Reko including skilled trades, leadership and senior management.

"We have appreciated the value of diversity at Reko for many years. The 50-30 challenge is a great way to highlight our progress so far and to encourage us to achieve more!” – Diane Reko, CEO, Reko International Group Inc.

The Government of Canada has long-supported the advancement and representation of women in business. As announced in the Fall Economic Statement, the government is proposing to create an Action Plan for Women in the Economy to help more women get back into the workforce and to ensure a feminist, intersectional response to this pandemic and recovery.

Since the launch of the Regional Relief and Recovery Fund (RRRF) in May, FedDev Ontario has provided critical support for thousands of southern Ontario businesses and other organizations, helping them continue operations, protect jobs, cover fixed costs and play a role in our economic recovery.

On November 27, Parliamentary Secretary Kate Young announced that over 275 businesses and organizations across the Bruce Grey Simcoe region are receiving over $10 million in combined RRRF funding, protecting nearly 1,200 jobs in the region. As part of the virtual announcement, Parliamentary Secretary Young heard firsthand from local business owners about the impact RRRF funding has had on their ability to continue operations.

She also met virtually with employees at Molded Precision Components (MPC). Since the outset of the pandemic, MPC has pivoted its operations to include manufacturing of over 27 million medical face shields for the protection of health-care workers in Canada and abroad, all while supporting youth employment in its rural community of Oro-Medonte. FedDev Ontario’s $2.9-million investment is helping the company expand, implement new technology and create over 30 high-skilled jobs.

As COVID-19 case numbers rise, businesses continue to struggle with the economic impacts associated with ongoing restrictions and adapting to new ways of doing business. The Digital Main Street program continues to be a source of hope for many entrepreneurs.

As part of Parliamentary Secretary Young’s visit to the area, she had the chance to meet virtually with Digital Main Street partners, recipients and students in the Bruce Grey Simcoe region to hear about their experiences with the program. Business owners shared how the vital support received has helped them regain lost revenue, strengthened their resilience and opened new opportunities for growth.

For example, The Creemore Refillery offers eco-friendly home and personal care products, providing customers refillable containers for home cleaning and bath and body care products. COVID-19 forced its closure, but a Digital Transformation Grant helped the company improve its social media presence and get e-commerce ready.

Over the past months, thousands of businesses have successfully pivoted operations and achieved digital transformation through participation in Digital Main Street, and with RRRF support from FedDev Ontario, more and more businesses are finding new opportunities through digitization.

Toronto-based Manis Cosmetic Consulting, a medical spa, was forced to close its doors in the wake of COVID-19. Connecting with a Digital Service Squad and using Digital Main Street resources, Manis Cosmetic Consulting was able to start an online store. A nurse herself, owner Helen Manis decided to give back to frontline workers by donating 100% of the revenue from their initial digital launch to provide 1,000 PPE masks to frontline hospital workers. “My primary goal is to give back to society in a way that I can as a nurse,” says Manis. “That right away engaged our patients who thought, okay, you know what? Now I can order products online and this is going to charity.”

Last month, Digital Main Street announced a lab project with Sociavore, an e-commerce platform for restaurants and food and beverage businesses. This pilot project will help restaurants fulfill online orders without having to pay costly commission fees to third-party delivery services, and help them access new markets.

Small businesses in our communities still need support. With the holidays upon us, now is a great time to show our support for local businesses by shopping local. Many businesses now offer online stores, curbside pickup, or safe in-store shopping. Throughout the month, Minister Joly and FedDev Ontario will be profiling some small businesses across Canada. We invite you to join the #ShopLocal movement and to share our social media content or showcase some of your favourite businesses using #ShopLocal and #SupportLocal.  

As we navigate the impacts of the pandemic, there is a crucial need for targeted investments in small businesses to help them stay afloat. The region’s Community Futures Development Corporations (CFDCs) are making a difference as key partners for FedDev Ontario in delivering the Community Futures Program and the Regional Relief and Recovery Fund (RRRF). Since the RRRF was launched in May, over 1,000 businesses have received RRRF support through their local CFDCs. This support has maintained over 3,500 jobs in the region and means that more rural businesses can keep their employees, cover costs and contribute to economic recovery.

For business owners like Katie Heath, the local impacts of the CFDCs’ work has been invaluable. Katie is co-owner of Prince Edward County’s Crimson Cider. Shortly after she had finished building a new production facility for her craft cider company, the pandemic struck and put her business at risk. Crimson Cider received RRRF support just in time from the Prince Edward, Lennox & Addington CFDC, which helped her to pay the bills and pivot to online marketing and digital sales channels. With this investment and a diversified business model, Crimson Cider has doubled its revenues, and created six jobs.

The region’s CFDCs recently announced they will deliver $30 million of FedDev Ontario’s additional RRRF funding to businesses in rural communities across southern Ontario, and continue providing the support that will help business owners like Katie not only stay in business, but transform for a more resilient future.

On November 30, the Government of Canada released Supporting Canadians and Fighting COVID-19: Fall Economic Statement 2020. This plan sets out proposed measures and investments to continue to protect Canadians’ health, jobs and the economy.

The FES highlighted the success of the RRRF, delivered by Canada’s regional development agencies, noting it has protected over 100,000 jobs and supported over nearly 15,000 businesses, including over 8,500 clients in rural areas and over 5,000 women-owned businesses. To ensure the RRRF can continue to support small businesses unable to access other federal relief measures, including the newly-announced Canada Emergency Business Account loan limit increases, the FES is proposing a top-up of up to $500 million to RDAs and the Community Futures Network of Canada, bringing total funding to over $2 billion in this fund. Twenty-five percent of the Fund would be earmarked to provide targeted support to local tourism businesses.

The FES also proposed a number of other measures to continue to support businesses through the pandemic:

• A $206 million investment over two years, starting in 2020-21, to the regional development agencies for a new Regional Air Transportation initiative.
• A new Highly Affected Sectors Credit Availability Program would provide government-guaranteed financing and low-interest loans for hardest hit businesses, including those in sectors like tourism and hospitality, hotels, arts and entertainment.
• Extending the Canada Emergency Response Benefit for an additional four weeks,
• Increasing the maximum Canada Emergency Wage Subsidy rate to 75 per cent for the period beginning December 20, 2020, and extending this rate until March 13, 2021.
• Extending the 25 percent top-up to the Canada Emergency Rent Subsidy until March 13, 2021.

As measures are subject to Parliamentary approval, more information will be shared once available.

FedDev Ontario is committed to supporting southern Ontario businesses as we navigate the pandemic and prepare for a stable, successful future.  For more information on FedDev Ontario and the RRRF, visit our website.