Support for Manufacturers in Urban as well as Rural Areas of Ontario

Ontario’s Advanced Manufacturing and Innovation Competitiveness Stream Program advertises 15% up to $5 million in interest-free loans and $1.5 million in grants (i.e. non-repayable/forgivable)  towards investments that create jobs and lead to economic growth/expansion/global competitiveness. Eligible expenses include new equipment/technology, consulting services, facility retrofits and expansions, as well as employee training and other project-related costs. Eligible businesses must be or planning to operate in Ontario, have 10 or more employees, plus provide 3 years audited or reviewed financial statements. Projects need to be 3 to 4 years in duration, with $500,000 or more eligible expenses, create and/or upskill a minimum of 5 jobs, plus occur in the advanced manufacturing sector i.e., automotive, aerospace, life sciences (including cannabis and food processing), wood manufacturing, information and communications technology, steel and chemical manufacturing.

Businesses in a municipality with populations under 100,000 or per square kilometre population density of 100 or under can request 15% up to $500,000 in grant funding. Conversely, business in higher populated areas (e.g., Toronto and Hamilton), can apply for interest-free loans of 15% up to $5 million with 30% up to $500,000 of the loan being forgiven (i.e., a grant) if the applicant meets promised job and investment targets. Strategic new investments to Ontario (companies without a presence in Ontario), or companies whose investment plans (including new mandates, expansion, or re-shoring/relocation) are subject to significant risk due to incentives offered from other jurisdictions, are eligible to receive 15% up to $1.5 million as a grant.

Typically, more than 50% of the program’s contribution is paid near or at the end of the project (e.g., year 3 or 4). Applicants must begin to repay awarded loans once the project is completed, at which time the government charges approximately 5% annually (i.e., provincial cost of borrowing plus 3%) on unpaid balances. Successful applicants are not allowed to secure other provincial funding for their project while receiving program support.

Only costs incurred on or after the application is approved (April 30, 2026) are eligible for support. The applications open November 4, 2025. Application deadline: February 3, 2026.

Support Retroactive to March 2025 for Equipment Purchaszed by Wood, Steel and Automotive Manufacturers 

Canada’s Regional Tariff Response Initiative (RTRI) offers 75% project funding up to $10 million in interest-free loans and 50% up to $1 million to Canadian businesses and organizations impacted by U.S. and China.

Eligible businesses include but not limited to wood, steel, automotive manufacturers. Applicants must have 5 to 499 employees, been incorporated for no less than three years, plus demonstrate that at least 25% of their revenues are in tariff-affected markets or show direct negative impacts resulting from the tariffs, e.g. increased costs, reduced sales, or lost market access.

Eligible activities include adopting or adapting technologies, automating, or digitizing production, reshoring R&D or manufacturing, expanding into new markets, as well as strengthening domestic supply chains and compliance standards.

Eligible expenditures include incremental employee wages, consulting fees, equipment purchases and installation, facility retrofits, marketing and outreach, training, and direct project materials. Ineligible costs include land and building purchases, vehicle costs, debt refinancing, entertainment, and ongoing operating expenses. Projects must begin after March 2025 and be completed no later than 31 March 2028.

Note: Deadline for applications in Quebec is October 30, 2025. In all other province applications will be accept on an ongoing basis until provincial funding allocation has been committed.

Funding to Adopt Innovative Technologies, Boost Competitiveness, and Enter New Markets

FedDev Ontario advertises up to 50% project funding to a maximum of $10 million in interest-free loans for Southern Ontario businesses to enhance productivity, expand into new markets, and adopt/adapt innovative technologies, processes or services.

Eligible activities include:

• Developing, commercializing, or producing new and innovative products, processes, or services
• Improving productivity, capacity, and competitiveness
• Scaling or expanding business lines to reach new customers and markets

Businesses must have 5 to 500 employees and be in operation for at least 2 years to apply. Eligible expenditures include equipment purchases and installation, facility retrofits, consulting fees, marketing and promotion, as well as project-related employee wages and other expenses. Funding is not provided for building, land or vehicle purchases, debt refinancing, basic R&D, or ongoing operating costs. Applicants must request at least $125,000 from the program (i.e., invest $250,000 or more). Repayment begins within one year of project completion; specific terms/periods are determined on a case-by-case basis. Projects generally last 1–3 years. Costs incurred before application submission are ineligible.

Click here to view FedDev Ontario program guidelines.

Up to $5 million Available to Ontario Businesses

Ontario’s Digitalization Competence Centre provides funding to assist Ontario SMEs in better understanding, transforming, modernizing, optimizing and/or selecting digital technology. The Centre’s Digital Modernization and Adoption Plan program offers 50% grant funding up to $15,000 for hiring a Digital Adoption Consultant to assist in developing a strategy i.e., Digital Technology Adoption Plan. Recommendations from this Plan can then be used to request funding of 50% up to $100,000 from the funder’s Technology Demonstration Program  Eligible recommended Plan expenses include:

• website search optimization (cannot be the only eligible expense)
• social media advertising (cannot be the only eligible expense)
• installation of a technology platform (including subscription fees/costs)
• back-office solutions to support a technology strategy.
• creation of customer databases
• development of new technology
• upgrading existing technology site for added functionality (i.e., new plugins, or features); please note, re-design of an existing site is not eligible.
• Software (e.g., to track and manage product inventory and/or fulfill and ship orders • product databases • to track sales, market to customers, offer discounts, maintain a loyalty program • to simplify marketing • cyber security software of certifications • hardware and accompanying software up to 20% of total grant amount).
• salaries of technical staff essential for the Plans implementation

Only expenses incurred after funding approval will be supported. Being approved for the Digital Modernization and Adoption Plan does  not guarantee DCC Technology Demonstration Program participation in funding. Additionally, requests for DCC Demo funding must include agreed participation by the Vendor supplying the technology in reporting outcomes.

To be eligible companies must be incorporated, operating in Ontario and have 1-499 employees. It is also necessary to have at least $500,000 in revenues plus 3 years of financials. Support is limited. Apply early.