Up to $5 million Available to Ontario Businesses
PROGRAM OPENS TOMORROW
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 and have 10 or more employees as well as 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), 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 after the application deadline are eligible for support. The application deadline is September 22, 2022.
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