Ontario’s economy began with natural resources such as fur, minerals, or timber. Natural resources remain an important aspect of Northern Ontario’s economy, but these days, southern Ontario represents a strong manufacturing hub. Approximately 70% of Ontarians work in service industries like business, tourism, culture, and finance.
Sponsored by FedDev Ontario, a program that creates, retains, and encourages growth in various businesses, Investing in Business Growth and Productivity (IBGP) represents a fantastic government funding for business opportunity in southern Ontario.
IBGP focuses on supporting well-established businesses with the ability to become important players on a global stage. This initiative encourages innovation while providing unique opportunities to fuel and accelerate the growth process, simultaneously creating jobs.
With the backing of IBGP, businesses scale up by expanding their markets and facilities, introducing new processes and technologies that increase productivity, and heightening their ability to contend in highly competitive global marketplaces. Diversifying market offerings or expanding market integration in global value chains are key components of this growth strategy.
Small and Medium-Sized Enterprises (SME’s)
Under the IBGP initiative, FedDev Ontario provides two streams of funding: one for small and medium-sized enterprises, and the other for not-for-profit organizations. IBGP gives preference to SMEs with a proven dedication towards diversifying southern Ontario’s regional economies.
The first stream supports SMEs that undertake activities related to bringing in new technologies, processes, or skills that help make their business better and prove their potential to become a force on a global stage. Given the global focus, this stream also stresses market development and expansion, including growth and integration into global value chains. Increasing business size encourages a higher level of economic diversification.
Eligible applicants include Canadian incorporated businesses from southern Ontario that currently employ more than fifteen and less than one thousand full-time equivalent positions.
Eligible costs include labour, expertise, and capital (or non-capital, as required on a per-project basis). These costs need to be reasonable and directly tied to eligible project activities. Any costs deemed unreasonable or that are indirectly tied to project activities are not considered.
Eligible applicants need to prove their ability to provide a minimum of 75% cash funding to start the project. Beyond this, they also require a sustainable business model including a proven track record of profitability. Projects need careful definition, including detailed breakdowns of cost estimates, and evidence that the business has the management and technical skills to see the project to fruition.
Government Funding for SME’s
SMEs are eligible for repayable contributions of up to 25% of eligible project costs to a maximum of $20 million per project. Total project funding from the federal, provincial, and municipal levels cannot exceed 75% of eligible non-capital costs and 50% of eligible capital costs.
Not-for-Profit Organizations
The secondary stream of IBGP provides funding for industry associations and regional development organizations situated in southern Ontario. In several respects, eligibility mimics the qualifications required from SME’s.
This initiative supports activities for not-for-profit organizations, like industry associations or regional economic development organizations, for instance, in order to provide government funding for businesses looking to adapt new technologies, processes, and practices that will increase their productivity on a local and global stage.
In order to receive funding consideration, not-for-profits need to demonstrate evidence of further project funding that also supports their proposal.
Government Funding for Not-for-Profits
Eligible applicants receive non-repayable contributions for up to 100% of eligible costs, up to a maximum of $20 million.
Collaborative initiatives between not-for-profits and SMEs have some stipulations. The final beneficiary of any collaborative work has to contribute a 50% cash contribution to cover half of the project costs, for instance.
If you want more information about either stream, get in contact with us at INAC Services. There are several stages to the application process for both streams with which we can get you started. All projects for either stream require completion by December 31, 2018 or incurred costs are ineligible. Don’t waste any time!
