Business Growth and Competitiveness (BG&C) in Northern Ontario

FedNor is committed to fostering economic growth and increased competitiveness of Northern Ontario businesses by investing in projects that facilitate access to capital, support modernization of operational and management processes, and increase trade, exports, and access to new markets.

The focus will be on activities that accelerate the growth of small- and medium-sized enterprises (SMEs) within key industry sectors and contribute to the expansion of the regional economy.

On this page

• Expected Results
• Eligible Applicants
• Eligible Activities
• Eligible Costs
• Ineligible Costs
• Funding Conditions
• Other Considerations
• How to Apply

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Expected Results

Results generated by FedNor's investments will include:

• Enhanced level of investment that increases the number of SMEs modernized and expanded in Northern Ontario.
• Diversified traditional industries and emerging sectors producing more value-added products.

Eligible Applicants

Eligible applicants include incorporated SMEs including Indigenous (First Nation/Métis/Inuit) businesses, with fewer than 500 employees.

Priority may be given to manufacturers and value-added businesses operating in the mining supply, forestry, clean technology, bioeconomy, and agri-food sectors.

Note: Retail/wholesale, construction, tourism, and service-based businesses are not eligible under this program.

Eligible Activities

Eligible activities are those which support increased capacity, and competitiveness of Northern Ontario SMEs.

Eligible Costs

Eligible costs must be incremental and directly related to the project, and may include:

• Cost of labour (e.g., wages and benefits);
• Purchase of machinery, equipment, and related training fees;
• Leasehold improvements;
• Professional, advisory, and technical services; and
• Marketing costs such as design, promotional materials, and participation at trade shows, when associated with a larger project.

Note:

• FedNor supported projects that include public communication of activities, outcomes or projects may be required to provide information in both official languages.
• Applicants are encouraged to consider Canadian materials and content, where such materials and content are competitive and available.

Ineligible Costs

Any costs deemed not reasonable and/or not directly related to the eligible project activities are ineligible, including:

• Regular maintenance and/or ongoing operation costs;
• Regularly scheduled capital expenditures and/or asset replacement;
• Refinancing of an existing debt;
• The purchase of any assets for more than the fair market value of the said asset;
• Costs of amortization and goodwill;
• Acquisition of land and buildings;
• Rolling stock;
• Contingency fees, and
• Costs for which the applicant has entered into a legal commitment/incurred prior to the eligibility date.

Funding Conditions

• Assistance available for SMEs is generally repayable.
• The amount of the awarded contribution will be based on the minimum amount required for the project to proceed.
• Generally, SMEs may be eligible to receive up to 50 percent toward eligible supported costs.
• Terms of repayment will be determined during the development of the contribution agreement and normally begin no later than one year following the completion of the project.

Other Considerations

To be considered eligible, project benefits must accrue to Northern Ontario.

All eligible applicants must be legal entities capable of entering into legally binding agreements.

To be considered eligible for funding, applicants must demonstrate:

• A sustainable business model normally supported by two (2) years of operations.
• Financial capacity to complete the project and repay the contribution in full.
• Managerial, technical, and operational capacity to achieve the project's stated objectives in a timely manner.
• A viable project plan with achievable outcomes, supported by verifiable cost estimates.

Completing an application does not guarantee funding approval. All applications will be assessed as they are received. This will include a review of the business case and financial projections, and the identification of any issues that may impact the project's success. Approval will also depend upon funding availability.

Financial assistance from government programs may have tax implications for a business. It is recommended that applicants obtain advice from a qualified tax professional.

How to Apply

Please call 1-877-333-6673 to discuss your proposal with a FedNor Officer in your area or begin your application process.

FedNor is committed to providing effective, efficient and client-focused programs and services. Visit our service commitment to find out more.