The Federal Development Corporation for Southern Ontario (FedDev) announced the change in its programs a couple of days ago. The changes are effective immediately, and I can’t wait to share them with you.

1) Investing in Business Innovation (IBI) and Investing and Business Growth and Productivity (IBGP) programs are consolidated in one new program called Business Scale-Up and Productivity. Between you and I let’s call it BSUP as there is no official acronym yet.

2) The new program is not available for startup funding but allows the applicant to use angel and venture capital investment. The applicant must be on solid financial ground.

3) BSUP focuses on late-stage technology development and commercialization, expansion or advanced technology adoption to improve productivity and help the applicant to support global growth.

4) Priority will be given to the high-growth globally-oriented businesses in high-priority sectors: advanced manufacturing, technology development, and agri-food.

5) All projects must be completed by December 31, 2023.

6) BSUP provides an interest-free loan for 35% of the eligible cost. Up from 25%.

7) Minimum requested amount of loan must be $500,000, up to a maximum of $10 million. It means that the minimum project budget must be $1.5 million.

8) BSUP reimburses the cost on a quarterly basis.

9) Grace period is up to 12 months following the completion of the project and no collateral.

Does your business qualify?

CHECK ELIGIBILITY NOW

The Federal government presented the Fall Economic Update last week. You‘ve probably heard major announcements in the news. But I wanted first to read over 100 of pages of the document, to make sure you get the most accurate summary of the changes in the Federal funding programs for businesses. Here is our analysis, which, hopefully, makes more sense to you compared to the mainstream media buzz.

1) The cost of machinery and equipment will be eligible for a full tax write-off the year it is put in use in the business. It doesn’t appear that there is an application procedure to be allowed to use immediate expensing. Waiting for CRA instructions on that.  Get Started

The Federal government renewed the funding for Yves Landry Foundation’s AIME Initiative, a successful incentive program for skills training. The program pays 50% of the training cost, including labour, up to up to $100,000 in non-repayable funding. The applications are accepted on a continuous basis but the funding can be depleted fast. Only the manufacturers employing over 10 employees in Southern Ontario can apply.

The money can be spent on developing new engineering skills, training in the use of new software, hardware or advanced production equipment, retraining to embrace new technologies, new manufacturing methods, processes or techniques (e.g. lean manufacturing, quality & supply chain management, etc). Get Started