We’re happy to inform you that the Southwestern Ontario Development Fund (SWODF) and the Eastern Ontario Development Fund (EODF) opened their intakes back on July 8, 2024.

The Funds support projects and investments to businesses in southwestern and eastern Ontario that create jobs, encourage innovation, attract private sector investment and lead to business growth and broad positive economic impacts.

Eligibility Requirements

• Invest at least $500 K in their project (or $200 K if you are in rural Ontario)
• Employ at least 10 people (or 5 if you are in rural Ontario)
• Commit to creating at least 5 new jobs (or 30% increase for companies with fewer than 15 employees)
• Be able to provide 3 years of operations/financial statements
• Be located in, or plan to locate in, a community in southwestern or eastern Ontario

Funding

• Loans up to 15% funding, interest-free during the project period (up to 4 years). If you achieve your investment and job targets, up to 30% of the loan may be forgiven.
• Grants are available only for specific circumstances, up to 15% if your company has fewer than 100 employees and is based in rural Ontario;
  or for strategic projects that are foreign direct investments or from companies competing against other jurisdictions.

Deadline

Application submission period: July 2, 2024 – September 17, 2024.

We’re happy to inform you that the applications intake for Green Industrial Facilities and Manufacturing Program (GIFMP) will be open from July 8, 2024 to August 30, 2024.

The Program provides cost-shared financial assistance to support the implementation of energy efficiency and energy management solutions designed to maximize energy performance, greenhouse gas emissions reductions, and competitiveness for industry in Canada.

GIFMP is now providing industrial facilities with application package under its “Industrial Facility Track” – direct-to-industry support to help implement energy efficiency and energy management solutions within respective facilities. Proposals can involve a single facility or multiple facilities.

Eligible requirements

Eligible recipients are Canadian facilities in any industrial sector that are engaged in energy consuming processes that involve the physical or chemical transformation of materials or substances into new products, regardless of the size of the facilities.

Facilities must be located at existing sites with fixed equipment, buildings, or complexes for extraction, production, or manufacturing. These can be located across different operational areas such as plants, factories, mills, and mines within the same boundary that are operated in some integrated way.

Amount

Cost-shared financial assistance of up to 50% of eligible implementation costs.

Deadline

The call for proposal will close on August 30, 2024.

We’re excited to share some valuable information that could help you significantly reduce your operating costs and improve energy efficiency at your facility.

Enbridge Gas provides a chance to work with their Energy Solutions Advisors, who can help you plan, quantify, and prioritize energy efficiency projects tailored specifically to your needs.

Amount of savings

Exclusive incentives for Ontario manufacturers include:

• $0.30/m³ for the first 50,000 m³ saved
• $0.10/m³ for each m³ beyond 50,000 m³ saved

In addition to these savings, you can also receive incentives for energy assessments, studies, and meters, covering up to 50% of incremental project costs, up to a maximum of $250K.

How to apply?

To ensure you qualify for these incentives, make sure to contact an Energy Solutions Advisor at energyservices@enbridge.com before issuing any purchase orders. Terms and conditions apply.

We hope you find this information useful and take advantage of Enbridge Gas’s tailored energy solutions to reduce your operating costs and enhance the energy efficiency of your facility. Don’t miss out on these exclusive incentives – start your energy-saving journey with them now!

As Government of Canada announced last week that it would resume investments to clean tech sector, we are happy to inform you that Sustainable Development Technology Fund (SDTF) will soon resume intake of applications from clean tech companies.

The Fund s designed to support the development and pre-commercial demonstration of clean-tech solutions to increase each projects chances of successfully making it to the marketplace and help Canadian entrepreneurs carry out their innovation efforts within the country.

Eligibility Requirements

Must be the developer or the manufacturers of the products or processes that:

• Contribute to clean air, clean water and clean land
• Address climate change
• Improve the productivity and the global competitiveness of the Canadian industry

Eligible Activities

• Late-stage development of clean technology solutions
• Pre-commercial demonstration of clean technology solutions
• Goods and services, labour costs, and depreciation expenses

Amount

Up to 40% of project costs in grant funding.

We’re excited to inform you that the AI For Manufacturing Challenge is now open for applications.

The Program is open for projects that will build advanced manufacturing capacity in Canada and enhance the commercialization of artificial and machine learning innovations across manufacturing sectors in Canada.

Eligibility Requirements

• Business-led and collaborative projects that focus on the commercialization of AI/ML solutions in manufacturing.
• Projects must include at least two industry partners, one manufacturing company and one AI company.
• At least one of these companies needs to be a Small Medium Enterprise.

Research organizations, companies and organizations working outside the manufacturing sector that can contribute technical expertise and knowledge to project consortia are also welcome to participate.

Eligible Activities

The Challenge will support AI-enabled advanced manufacturing technology development and commercialization such as:

• Systems optimization within manufacturing facilities and/or across supply chains
• The development of new advanced manufacturing capabilities for example new robotic, or automation equipment.
• Enhanced manufacturing facility and process cybersecurity.
• Rapid prototyping and testing of materials, products, and processes.
• The development of other disruptive AI-enabled manufacturing capabilities and services.

Amount

Eligible projects will be reimbursed at a funding rate of 35% of total eligible project costs.

Deadline

The deadline for application intake is July 4, 2024 (5 pm Eastern).

Sustainable Manufacturing Challenge

For the Canadian manufacturers launching cleantech activities, we would also like to remind about the Sustainable Manufacturing Challenge. The Challenge is seeking projects that will support Canada’s path to net-zero greenhouse gas emissions and target challenges like emissions reduction. These Projects will aim to accelerate the application of Canadian cleantech and other advanced technologies to improve the environmental sustainability of Canadian manufacturing.

Amount

The challenge reimburses up to 35% of total eligible costs incurred by industry partners. The total amount of eligible project costs.

Since the announcement of the Ontario Made Manufacturing Investment Tax Credit, which recently opened its intake, we have received many questions from our clients. We are happy to share the most common questions and answers.

Question 1: We paid a 50% deposit on the machine in February 2023 and the balance in September 2023. The machine has been operational since October 2023. Do we qualify for a claim against 50% or 100% of the machine’s cost?

Answer: You qualify for a claim against 100% of the machine’s cost because it became available for use after March 22, 2023.

Question 2: We just completed the construction of a new industrial building for our business. It took three years to build, and we paid several installments to the construction firm. How much of the construction cost is eligible for a 10% refund?

Answer: 100% of the constriction cost is eligible for a 10% refund as long as the building became available for use after March 22, 2023.

Question 3: What does “becomes available for use” mean from an eligibility perspective?

Answer: “Available-for-use” date for buildings is defined as the date when the construction, renovation or alteration of the building is complete, or the applicant first uses the building for the purpose for which it was acquired.

The “Available-for-use” date for equipment is defined as the date when the applicant first uses the equipment to earn income or the date the equipment is delivered to the applicant and is capable of producing a commercially saleable product or service.

Question 4: Our operating company owns the equipment, but a related company owns the building. Do we qualify for a 10% refund against building costs?

Answer: Yes, you qualify because a related (associated) company owns the building, not a third-party landlord.

Question 5: We financed our equipment and building, and it will take years to pay off the loans. Do we qualify for a claim against 100% of the equipment and building costs or a portion of the costs we paid off this year?

Answer: You qualify for a claim against 100% regardless of how you’ve obtained financing. Please note, however, that leasing or rental costs are not eligible because you don’t own the asset.

Question 6: We closed our fiscal year with losses and don’t owe corporate income tax. Do we qualify?

Answer: Yes, you qualify and could get a refund even if you don’t owe corporate income tax. However, if you owe taxes from previous periods, the refund amount will be reduced accordingly.

Question 7: What kind of equipment is eligible?

Answer: Any machinery and equipment used in the manufacturing or processing of goods for sale or lease is eligible. However, transportation equipment, including forklifts, is not eligible.

Question 8: What kind of building is eligible?

Answer: Any industrial building with 90% of the floor space used for manufacturing or processing in Ontario is eligible

Question 9: We purchased a machine in August 2023, but our fiscal year is closed. How do we apply?

Answer: You can apply for a 10% refund by filing an amendment to your assessed corporate income tax return (T2) and submitting a special application form with refund calculations.

The Ontario Made Manufacturing Investment Tax Credit is a 10% refundable tax credit for capital investments in buildings, machinery, and equipment used in manufacturing or processing, which aims to bring manufacturing back to Ontario.

Eligibility requirements

1. Be a Canadian‐controlled private corporation (CCPC)
2. Have a permanent establishment in Ontario
3. Make qualifying investments (incur eligible costs)

Eligible Costs

• Constructing, renovating or acquiring buildings used for manufacturing or processing that become available for use on or after March 23, 2023. To qualify as a building used for manufacturing, 90% of the floor space of the building must be used at the end of the corporation’s taxation year for manufacturing or processing.
• Machinery and equipment used in the manufacturing or processing of goods. The machinery and equipment would have to be acquired and become available for use on or after March 23, 2023, and before 2026.

Amount

The maximum amount of funding is 2M per taxation year and would be prorated for a short taxation year.

We are happy to announce that the Ontario Made Manufacturing Investment Tax Credit has recently opened its intake.

The program is a 10% refundable tax credit for capital investments in buildings, machinery, and equipment used in manufacturing or processing, which aims to bring manufacturing back to Ontario.

Eligibility requirements

1. Be a Canadian‐controlled private corporation (CCPC)
2. Have a permanent establishment in Ontario
3. Make qualifying investments (incur eligible costs)

Eligible Costs

• Constructing, renovating or acquiring buildings used for manufacturing or processing that become available for use on or after March 23, 2023. To qualify as a building used for manufacturing, 90% of the floor space of the building must be used at the end of the corporation’s taxation year for manufacturing or processing.
• Machinery and equipment used in the manufacturing or processing of goods. The machinery and equipment would have to be acquired and become available for use on or after March 23, 2023, and before 2026.

Amount

The maximum amount of funding is 2M per taxation year and would be prorated for a short taxation year.

We are excited to inform you that the Critical Industrial Technologies (CIT) initiative is now open for applications. Through the initiative Ontario industry will converge with innovative SMEs to amplify Ontario’s rich critical technology capabilities and propel four key sectors of Ontario’s economy to the forefront of this transformation.

The initiative is committed to achieving the following 4 goals:

• Building an Ontario critical technology ecosystem that propels Ontario’s mining, advanced manufacturing, construction, and agri-food sectors forward to be leaders in the global economy.
• Supporting critical technology education and awareness to help SMEs understand the benefits of creating, commercializing, and adopting critical technologies.
• Accelerating the growth of Ontario companies through the development and commercialization of Made-in-Ontario technologies and expanding critical technology talent.
• Fueling significant advances within and between the four sectors by supporting the adoption, demonstration and integration of critical technologies.

Eligible Critical Technologies:

• 5G & advanced networks
• Artificial Intelligence (AI)
• Block chain
• Robotics
• Cybersecurity
• Quantum

Programs:

1. Development and Commercialization Program (DC)

Eligible SMEs can access a Technology Development Site to integrate, develop, test, and showcase their critical technologies solution.

Amount:

Reimbursement of 50% of total eligible project costs, up to a maximum of $200 K, with a minimum of $50 K.

2. Technology Access Program (TA)

Eligible SMEs can access a Technology Development Site to integrate, develop, test, and showcase their critical technologies solution.

3. Sector Adoption Program (SA)

Sector Adoption Program supports a consortium of partners working together to address a set challenge statement and catalyze impactful change for the whole sector.

Amount:

Reimbursement of 33.33% of total eligible project costs.

4. Talent Development Program (TD)

Eligible SMEs can invest in critical technology training and support for employees.

Steam 1: Internships for new, young talent creating the workforce of tomorrow

Stream 2: Upskilling/reskilling existing employees for the challenges of today

Amount:

$10 K per unit (fixed 4-month period) for eligible project costs, up to maximum of $20 K (two units – fixed 8-month period).

5. Future Ready Program (FR)

Expert support for eligible SMEs to adopt new critical technologies through upskilling/reskilling staff.

Amount:

Reimbursement of 50% of total eligible project costs, up to a maximum of $10 K.

As the Spring 2024 intake for the Business Scale-up and Productivity program is now open, businesses in Ontario have a chance to get an interest-free government loan to complete large-scale expansion, adopt innovative technologies, scale-up, boost productivity, and enter new markets to become globally competitive.

The government reimburses 50% of eligible project costs. The loan is disbursed every quarter and repaid over 5 to 7 years after the completion of the project.

Explore Solutions to Scale Up Your Productivity

Gearing up for the current intake of the Business Scale-Up and Productivity program, we’re thrilled to share valuable insights and support resources through our partners at Building Perspective, experts in providing tailored solutions to support business scale-up endeavors.

Building Perspective offers a comprehensive suite of services, with the first three directly addressing BSP eligible expenses:

• Greenfield warehouse selection and/or layout design
• Correct production equipment sizing/selection and maintenance procedures
• Designing continuous product flow with Lean Principles

Additionally, they provide:

• ISO certification preparation
• Lean training for high-performance teams
• Selection of the right ERP/digital technology

To illustrate, ERP technology selection performed by Building Perspective for one of its clients enabled the business to actually save 25% of their annual software costs by purchasing the ERP selected to replace their existing collection of software. Read full case study here.

Ready to take the next step towards business growth? Reach out to Vani Pasupathy, Managing Partner at Building Perspective: vani@buildingperspective.com.

We’re excited to inform you that the Business Scale-up and Productivity program has just opened its Spring 2024 intake. The program is an interest-free government loan that supports businesses in Ontario as they complete large-scale expansion, adopt innovative technologies, scale-up, boost productivity productivity, and enter new markets to become globally competitive.

This time, the government reimburses 50% of eligible project costs, up from 35% in the past.

The loan is disbursed every quarter and repaid over 5 to 7 years after the completion of the project. A grace period of 12 months following the project completion date applies.

Eligibility Criteria

• Must be located in Southern Ontario. If you are in Northern Ontario, a similar program is available.
• Canadian or provincially incorporated businesses.
• Indigenous organizations such as Indigenous-owned businesses.
• Co-operatives.
• Minimum of five (5) full-time employees.
• Market/industry demand (e.g., how the project addresses a significant gap in the market; global opportunity to be seized within Canada; and evidence that southern Ontario is uniquely positioned to capture market share).
• Financial capacity to complete the project and repay the contribution in full.
• A viable project plan with achievable outcomes, supported by verifiable cost estimates.

Eligible Activities

• Acquiring, adapting or adopting leading-edge technologies/processes.
• Expanding manufacturing and/or R&D facility.
• Demonstration of leading edge technologies and/or processes in an operational setting.
• Late-stage technological development to support new markets and/or new industrial applications of technology.
• Increasing business management capacity by building high-performance teams, adopting best management practices, processes and systems.
• Commercializing/producing new innovative products, processes or services.
• Customer and market development, expansion or diversification to support business growth and integration in global value chains and an initial sale.

Hurry up to apply for the Business Scale-up and Productivity (BSP) program, as the deadline for the current intake is June 24, 2024.

We’re excited to share with you another success story from our client, a commercial bakery with multiple locations in the Toronto area, that has recently succeeded in securing over 200K in grants for equipment purchasing and ERP implementation.

The funding helped the company significantly improve its processes, quality, inventory management and bottom line by implementing an ERP system. The bakery also purchased an Automated Injecting Line to fill homogenous creams or jams. Currently, the business employs over 400 employees and serves large wholesale clients.

As a result of the project facilitated by the grants, the company:

• Increased production throughput by 10 to 20%
• Reduced labour costs per line by 72%
• Increased revenue by 30%
• Reduced raw material waste by 10%
• Improved consistency and weight of the products
• Made real-time analytics available on their production line
• Created over 60 new jobs

We look forward to more achievements and exciting results for our client as we are working on applying for grants for international marketing and skills training.

As the Federal and provincial governments have recently tabled their 2024 fiscal year budgets, make sure to explore all the government funding opportunities available for your business to drive its growth and reach new horizons.

We’re happy to inform that intake is now open for the Southwestern Ontario Development Fund (SWODF) and Eastern Ontario Development Fund (EODF). The programs support projects and investments to businesses, municipalities and not-for-profit organizations for economic development in southwestern and eastern Ontario.

Eligible Expenses

The objective of the programs is to provide financial support and services to help growing companies in southwestern and eastern Ontario make investments to:

• Construction and project facility modifications or upgrades, subject to Ontario’s approval
• Site servicing, power service upgrades, etc. required to execute the project
• Equipment and machinery necessary for the successful completion of the project
• One-time labour directly related to project costs
• Costs of specialized expertise required for the project including third-party engineering services, software development, management, etc
• Skills training, including employer-provided training, related to the project
• Permits, inspections and other fees directly attributable to the project

Eligibility Criteria

• Be located in southwestern/eastern Ontario.
• Employ at least 10 people (or 5 if you are in rural Ontario)
• Commit to creating at least 5 new jobs (or 30% increase for companies with fewer than 15 employees)
• Be able to provide 3 years of operations/financial statements
• Be located in, or plan to locate in, a community in southwestern/eastern Ontario

Funding Amount

Up to 15% of eligible project costs in government loans with forgivable component (grant).

The Ontario government released its 2024 fiscal year budget. Our team was pleasantly surprised by the continuity of key provincial funding programs for Ontario businesses. But we have also noticed several new opportunities.

Equipment & Building Purchase – Ontario Made Manufacturing Investment Tax Credit

Even though the intake start date for the Ontario Made Tax Credit is still unknown, the budget for this program is allocated. Any Ontario manufacturer that spends money on equipment, building or leasehold improvements can claim 10% of these expenses retroactively to March 2023. Stay tuned as we will announce the program the minute it becomes available.

Skills Training Grants

Skills Development Fund will have several intakes this fiscal year. There was no specific word on the Canada-Ontario Job Grant in the budget, but the program accepts applications, so we don’t expect any issues. Applicants can get 50%-83% of their skills training costs from the program.

Business Expansion Grants & Loans

Advanced Manufacturing & Innovation Competitiveness (AMIC) will be continued! The next intake start date is unknown, but all Ontario advanced manufacturers that want to scale up will have a chance to apply.

Similarly, the Southwestern Ontario and Eastern Ontario development funds will be continued.

The Invest in Ontario Fund will support large-scale investment projects in Ontario.

Mining Grants

The mining sector will get a boost through the Critical Minerals Innovation Fund.

Other Tax Credits

Other tax credits that are worth mentioning are:

• Regional Opportunities Investment Tax Credit
• Co-Operative Education Tax Credit

We’re excited to inform you that Ontario Automotive Modernization Program (OAMP) is now open for applications.

The program partners with small- and medium-sized automotive parts suppliers in Ontario to help modernize Ontario’s automotive supply chain to make it more competitive and responsive to the changing needs of its customers.

Eligibility Requirements

• Small- and medium-sized Ontario-based enterprises (firms with fewer than 500 employees globally AND global revenues of less than $1 billion) with a Business Number (BN).
• Larger companies are eligible; however, they must partner with at least one Ontario-based small- or medium-sized enterprise.
• Must be in the automotive supply chain to original equipment manufacturers.
• At least 50% of the company’s total sales revenue must come from the automotive supply sector.
• Must be a for-profit business (legal entity) registered to carry out business in Ontario.
• Must have a manufacturing location in Ontario by the time the project starts.
• Must have a minimum of two (2) years of financial statements.
• Must be in substantial compliance with all applicable laws.
• Must be free and clear of any fees, levies, charges or taxes owed to Her Majesty the Queen in right of Ontario or any of her agencies.
• Must be in compliance with the Accessibility for Ontarians with Disabilities Act, 2005.

Eligible Projects

• Technology adoption – e.g. using advanced manufacturing equipment, hardware, software and/or training to improve processes and competitiveness. This might include using logistical systems and investing in production hardware or software that digitize production tracking
• Lean manufacturing – e.g. improving operational efficiency and competitiveness by using lean manufacturing techniques or hiring the services of a mentor/consultant to help with lean implementation.

Eligible Costs

• Salaries and benefits: incremental salary and benefits for employees of the company working on the project activities.
• Capital Costs: hardware and software implementation, installation, and setup costs; cost of direct materials, necessary for specifically identified activities and measured as having been used for, the completion of the project; materials used for configuring, testing production processes, systems, and training employees.
• Training Costs: cost involved in providing personnel with training and/or development in novel techniques required for the project for their role(s); sub-contractor and consultant fees (must be associated with LEAN Mentorship).
• Travel and Living: travel costs are explicitly project related, represent the most economical option (economy fare, and standard hotel room).

Amount

The program provides 50% of eligible costs up to a maximum of $150 K.

Deadline

The application intake closes on May 2, 2024.

On International Women’s Day, we are happy to share an initiative that empowers women entrepreneurs across Canada to pursue their dreams and ambitions.

The Women Entrepreneurship Loan Fund, backed by the Government of Canada, aims to provide vital financial support to women-led businesses, enabling them to thrive and succeed in their endeavors.

Within the Initiative, the Government of Canada has selected several delivery organizations to provide loans to women entrepreneurs. The selected delivery organizations are now accepting loan applications from women entrepreneurs:

• The Women’s Enterprise Organizations of Canada (WEOC)
• The National Aboriginal Capital Corporations Association (NACCA)
• The Northumberland Business Development Assistance Corp
• Coralus, formerly SheEO
• Evol

To apply for the available loans, applicants must prepare their business plans. This ensures that recipients have a clear roadmap for success and helps set them up for long-term sustainability. With a profound background in business planning, our team is here to support you every step of the way, from crafting your business plan to navigating the loan application process.

We’d also like to remind you that women entrepreneurs qualify for a variety of regular grants and loans beyond the Women Entrepreneurship Loan Fund. So, we encourage you to explore all available resources to maximize your business’s potential for success.