MEDG Business Support Funding

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1 MEDG Business Support Funding Ministry of Economic Development and Growth (MEDG) Funding Administration Branch Ontario Investment Office

2 MEDG Funding Administration Branch Business Support Programs administered by MEDG Jobs and Prosperity Fund (JPF) launched in 2015 New Economy Stream Food and Beverage Growth Fund Strategic Partnerships Fund Forestry Growth Fund

3 MEDG Funding Administration Branch Business Support Programs administered by MEDG Regional Programs Eastern Ontario Development Fund (EODF) launched in 2008 Southwestern Ontario Development Fund (SWODF) launched in 2012

4 Eastern Ontario Development Fund (EODF) Objectives Objective of EODF is to attract investment and support job creation in eastern Ontario. The EODF Business Stream provides support to growing companies that are investing in innovation and new technologies, manufacturing new products and pursuing new markets, leading to value added sustainable jobs. Eligible applicants + projects - Existing businesses in a targeted sector with 3+ years of operations and 10 employees (or 5 in small/rural communities) - Eligible projects minimum investment $500,000 (or $200,000 in small/rural communities) - Job creation commitment 10 new jobs over 4 years (or fewer for small companies) 4

5 EODF Support Business support - Up to 15% of eligible expenses - maximum grant $1.5M or maximum loan is $5M - Stacking with federal government up to 50% permitted. Eligible costs - Costs incurred and paid after a project is approved and contracted - One time, project specific expenditures including: - Project facility modifications or upgrades - Equipment and machinery - One-time labour and materials - Specialized expertise - Skills training, permits, fees 5

6 EODF Application and Assessment Process Regional staff from ministries available to provide support Continuous intake - 2 stage process - Eligibility Checklist to confirm company and project are eligible - Full Application - business plan, job targets, budget, financials Assessment and Due Diligence Multi ministry review - Assessment includes: - Job creation and retention - Investment attraction - EODF - Regional, sector, cluster impact - PIE productivity, innovation and exports - Return on Investment to Ontario - Business Growth Initiative scaling up businesses and innovation Minister Decision 60 days from complete application to decision If approved - milestone based disbursements follow investment and job creation; Clawbacks if investment and jobs targets are not met 6

7 EODF Results Since 2008, the government has committed over $89 million through the Eastern Ontario Development Fund, leveraging a total investment of over $840 million. These investments have helped create and retain over 18,500 jobs. 150 EODF projects have been announced. Numerous Program Reviews - Projects meet and often exceed job creation objectives - Accountability for job creation and project implementation - Level of support accelerates investments and promotes responsible decision making - The funds lead to additional indirect benefits - Post-project performance of firms to assess the longer-term impact of government support companies continue employment and revenue growth 7

8 Rural Regional Integration As outlined in the 2016 Ontario Budget, the Eastern Ontario Development Fund, the Southwestern Ontario Development Fund and the Rural Economic Development Program will be better integrated under the Jobs and Prosperity Fund to help improve the coordination of regional business support programs. This integration will better serve Ontario businesses, build strong rural and regional economies and create jobs across the province. Our consultation process will ensure that our business support programs will respond effectively to opportunities for investment and job creation in rural Ontario. OMAFRA will continue to deliver the Community Economic Development Stream under RED. 8

9 For more information Ontario Investment Office, Senior Business Advisor - Anne Croteau Tel: (613) x 231 Toll Free: x 231 9

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