Business Scale-Up and Productivity - Federal Gov't Interest-Free Loan

Amount: No-interest, repayable contributions from $125,000 up to $10 million per project

About Ontario Business Scale-up and Productivity (BSP) Program

The FedDev Ontario Business Scale-up and Productivity (BSP) program provides governmental support for businesses in southern Ontario to drive their scale up and productivity. This FedDev Ontario grant offers no-interest repayable contributions (government loans) with repayment which can be made within a year since the project has been completed.

With Business Scale-up and Productivity (BSP) grant, Canadian government supports small business in Ontario as they adopt innovative technologies to boost scale-up, productivity, and enter new markets to become globally competitive.

Eligibility Criteria

Must be located in southern Ontario.
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

Demonstration of leading edge technologies and/or processes in an operational setting. Activities would normally fall within (TRL 7-9).
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.
Acquiring, adapting or adopting leading-edge technologies/processes.
Customer and market development, expansion or diversification to support business growth and integration in global value chains and an initial sale.

Eligible Cost

Focus on one or more of our spring 2024 intake priorities:

Clean economic growth – projects that support the greening of the economy, that can contribute to emissions reductions, and that create sustainable and green jobs
Growth companies – projects that accelerate innovation-led growth
Technology – projects led by high-potential firms in cutting-edge sectors (e.g., artificial intelligence, life sciences and digital technologies)
Industrial transition – projects that support change in traditional sectors, develop new sectors and ensure there are opportunities for years to come

Inclusive growth and regional coverage are cross-cutting investment principles. FedDev Ontario wants to help you grow your business. We welcome projects that create new opportunities for underrepresented groups and promote growth across urban centres and small and rural communities alike.

Amount

Applications can be submitted for no-interest, repayable contributions from $125,000 up to $10 million per project for incorporated businesses that:

develop, commercialize or produce innovative products, processes and services
improve productivity, capacity and competitiveness
scale-up and expand to develop new business opportunities, enter new markets, or reach new customers.

The program provides 50% of eligible project costs, up from 35%.

Eligibility Timeline

FedDev moves from continuous intakes to opening several intakes a year. The deadline for the current intake is June 24, 2024.

Intake Timeline

Applications are accepted three times per year. The next scheduled intake periods are:

fall 2023 (deadline to apply is November 7, 2023)
winter 2024
spring 2024
fall 2024

Review Timeline

If a project is approved, you will be expected to sign a contribution agreement within 30 days of being notified, including confirming all sources of the matching funding (e.g., bank statements, term sheets, letters of conditional funding, other government funding).

Funding will be reimbursed based on approved costs incurred and claimed throughout the project’s duration.

Reimbursement Schedule

Should your project be approved, repayment will normally begin 1 year after the completion of the project. The schedule of payments will be set out in your contribution agreement.

There is no penalty for early repayment.

Program’s Budget

The budget allocation varies from province to province and is part of the Federal budget.

Selection Criteria

Applicants must submit an application package prior to incurring eligible project expenses.

Applications are generally assessed based on the applicant’s overall eligibility and ability to deliver project-related impacts such as increased domestic and foreign sales, development or licensing of intellectual property, and job creation.

How to Start My Application

The Business Scale-up and Productivity program is currently accepting applications. Businesses can submit application packages to FedDev Ontario for evaluation by federal government reviewers. If applicants pass the pre-screening process, they will be contacted by a government official who will request additional project information, including financial information. The government will also conduct a credit check to ensure applicants have sufficient resources to lead the project.

Start by verifying your eligibility through our eligibility check form.

Deadline