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?