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Investment in CME SMART Program

Intake for Food and Beverage Processing Sector

General

Q. How much funding is FedDev Ontario providing under the SODP?

Q. How much funding is FedDev Ontario providing under the SODP?

A. Approximately $100 million has been allocated to the SODP in 2009-10, including the following:

Nearly $63 million through a general intake process;
up to $20 million through an intake for the food and beverage processing sector;
$15.75 million for the Canadian Manufacturers and Exporters’ (CME) SMART Program to fund an estimated 300 projects that will help small- and medium-sized manufacturers increase their productivity and competitiveness in the global economy; and
$1.6 million for the Ontario Chamber of Commerce’s Export Market Access Program to help southern Ontario businesses that would like to increase their sales internationally.

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General Intake for 2009/10

Q. How much funding is FedDev Ontario providing under the general intake of the Southern Ontario Development Program?
Q. When will applicants find out if their project will be supported under the general intake?
Q. How were projects assessed?
Q. Will environmental assessments be required for projects?
Q. What kind of funding is available?
Q. When is a contribution repayable?
Q. What are the terms for repayment?
Q. What costs are eligible?
Q. Is the purchase of land, or buildings, or the construction of a building considered an eligible cost?
Q. How much funding can be provided?
Q. What kind of projects fall under FedDev Ontario priorities?
Q. Why was my project not selected for funding?

Q. How much funding is FedDev Ontario providing under the general intake of the Southern Ontario Development Program?

A. On January 18, the federal government announced its intention to support 63 projects with a contribution of up to $62,711,900 through the 2009/2010 general intake of the SODP. This is nearly $8 million more than the $55 million originally committed.

Q. When will applicants find out if their project will be supported under the general intake?

A. Projects will be announced over the coming weeks.

Q. How were projects assessed?

A. Project proposals were assessed against the following criteria:

conformity with FedDev Ontario priorities (economic development, innovation and diversification);
compatibility with SODP objectives;
economic impact of the project;
long-term economic viability of the project;
incremental nature of the assistance;
demonstrated financial need for implementation of the project, taking other existing funding sources into account;
demonstrated evidence that the project meets a recognized need and significantly contributes to a region’s economic development;
applicant’s management capacity;
track record and viability of the enterprise or organization;
applicant’s financial contribution to the project;
degree of leveraging of commercial financing and other sources of financing;
level of risk involved; and
adverse impacts on competition.

Priority was given to organizations or businesses located in municipalities in Southern Ontario with populations of 500,000 or less, as well as to communities whose economies are less diversified and/or are reliant on a limited number of employers.

FedDev Ontario favoured projects that could be started quickly and completed by March 31, 2010.

Q. Will environmental assessments be required for projects?

A. As part of its project assessment process, the Agency requires that all projects conform with the environmental guidelines set out in the Canadian Environmental Assessment Act.

Q. What kind of funding is available?

A. Financial assistance awarded under this program is provided in the form of contributions, which must have a leveraging effect and a direct economic impact on the region and must comply with the provisions of the Treasury Board’s Policy on Transfer Payments.

The contribution may be repayable, depending on the nature of the project and the requested financial assistance. Generally, contributions to commercial enterprises are repayable.

Project proponents must commit to measure and report on the results obtained through the implementation projects funded by FedDev Ontario.

Q. When is a contribution repayable?

A. Contributions made to for-profit businesses will be repayable.

Contributions to non-profit organizations or municipalities for projects that are not profit generating are generally non-repayable.

Q. What are the terms for repayment?

A. Repayments of contributions will be expected to commence as soon as reasonably possible, without compromising the success of the project or the organization receiving the funding. The specific terms of repayment, including date of commencement and length of repayment term, will be determined on a case-by-case basis during the development of the contribution agreement.

All repayable contributions are non-interest bearing.

Q. What costs are eligible?

A. Eligible costs include all expenses directly related to the project and deemed reasonable and necessary for its execution. Agency priorities, policy and guidelines are taken into account in the analysis of costs. Costs can only be incurred after the project has received the Agency’s approval.

Q: Is the purchase of land, or buildings, or the construction of a building considered an eligible cost?

A: The purchase of land or buildings, or the construction of a building, will generally not be supported as assets of this nature are able to attract commercial financing. Leasehold improvements that are directly attributable to the project may be considered.

Q. How much funding can be provided?

A. For capital projects, up to 50 percent funding is available for eligible costs which include:

Machinery and equipment needed for the project.
Working capital requirements related to an expansion project.
Site improvements such as land clearing and paving required for the project.
Leasehold improvements required for the project.
Leased equipment and expenditures under conditional sales contracts.
Infrastructure (such as water and sewer) required for a specific business development initiative.
Intangible assets such as patents, trademarks and licenses.
Start-up costs such as insurance and interest capitalized during construction.

For non-capital projects, up to 75 percent funding is available for eligible costs which include:

Marketing: Includes the development of a marketing plan, the hiring of marketing expertise to implement the plan, and related marketing activities such as labelling, packaging, promotional materials, advertising, product demonstrations and participation at trade shows.
Training: Includes the development of a training plan, the hiring of training expertise to implement the plan and related activities such as training materials, seminar fees, and wages during the time that employees received off-the-job training.
Productivity/Quality Improvement: Includes the development of a productivity or quality improvement plan, the hiring of expertise to implement the plan, and related activities such as obtaining a recognized quality certification such as ISO, and the cost of needed technical equipment.
Innovations: Includes costs related to researching and developing new or improved products, services and processes such as the labour costs of expertise, materials, special equipment, testing and patents.
Consultant Advice: Includes the cost of hiring a qualified consultant to prepare a business plan, feasibility study, investigate licensing opportunities, conduct a venture capital search, technology transfer search or provide advice to improve your business skills.
Contract bidding: Includes the cost of improving your competitive ability to bid on and acquire public and private sector contracts.
Business proposal development: Includes the cost of turning your idea into a viable business proposal, example the completion of feasibility study, prototype development, and gathering information on markets and raw material suppliers.
Business Support: Not-for profit organizations may qualify for assistance towards activities that support the business community, entrepreneurship or economic development.

These funding limits do not apply to:

not-for-profit groups and Aboriginal recipients;
non-commercial projects from for-profit organizations; or
projects where total government assistance is $100,000 or less.

In all cases, applicants are expected to contribute a minimum of 10% of the eligible costs of the project.

Please note the funding limits represent thresholds for total government funding, including federal and provincial contributions.

Q. What kind of projects fall under Fed Dev Ontario priorities?

Competitiveness and Productivity

Projects under this priority aim to foster the competitiveness and productivity of Southern Ontario SMEss. Project proponents should demonstrate, for example, that the project:

is in line with the business’ growth and innovation strategy;
will improve the technological capabilities of the firm;
will further the region’s economic priorities;

Examples of eligible projects include: the conducting of research and diagnoses on an enterprise’s needs and requirements; access to management consultants; the hiring of technology experts; technical testing of processes and equipment; implementation of advanced management systems; purchasing equipment and improving the technological capabilities of businesses; operational costs related to implementation.

Innovation and Commercialization

Projects under this priority aim to increase innovation and commercialization in Southern Ontario. Project proponents should demonstrate, for example, that the project will:

help SMEs create new products, processes or services (or improve existing ones) and support their efforts to commercialize these innovations;
support SMEs at developing or implementing export strategies for international markets;
increase SMEs’ capacity to innovate, adopt leading-edge technologies or processes and develop markets.

Examples of eligible projects include: planning the development of new products, processes or services; marketing plans and market testing; pre-commercialization activities; acquisition of leading-edge technologies for R&D, design and commercialization activities; feasibility studies or preliminary market research for testing and experimentation projects; the conducting of diagnoses, market studies and strategic plans relating to sales, marketing and customer relations; the hiring of foreign market representatives; and participation in trade missions.

Community Development and Economic Diversification

Projects under this priority aim to foster the economic development and diversification of communities, as well as increase their mobilization and attractiveness. Project proponents should, for example, demonstrate that the project will:

help build communities’ capabilities in order that they may take charge of their own development;
encourage entrepreneurship;
increase the number of new and sustainable enterprises;
attract and retain skilled labour.

Examples of eligible projects include: strategic planning; studies; business incubators; industrial parks; technology and innovation parks; entrepreneurship development and training; skills training; business support services; and internships.

Q. Why was my project not selected for funding?

A. Many good applications were submitted and therefore some difficult decisions had to be made. FedDev Ontario received more than 1,800 applications with total requested funding of nearly $1.6 billion. Due to the overwhelming response, the federal government is providing nearly $8 million more than the $55 million originally allocated to the general intake, so even more projects can proceed to stimulate local economies.

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Investment in CME SMART Program

Q. What is the CME SMART Program?
Q. Why are you announcing funding for the CME SMART Program?
Q. What projects qualify for the CME SMART Program?
Q. How do I apply for CME SMART funding?
Q. When will CME SMART projects be announced?
Q. How does this funding fit into FedDev Ontario’s role in supporting economic and community development, innovation, and economic diversification?

Q. What is the CME SMART Program?

A. The Canadian Manufacturers & Exporters (CME) created the SMART Program in March 2008 to improve the manufacturing productivity of SMEs to enable them to compete more effectively in the global economy. To date, direct funding to over 400 companies has been provided through the program.

Q. Why are you announcing funding for the CME SMART Program?

A. As part of FedDev Ontario’s effort to use existing programs and partnerships to expedite the provision of funds, the CME SMART Program is an excellent vehicle to leverage funds for a sector that needs immediate financial support.

The CME SMART Program, announced in March 2008, provided a $25-million financial contribution by the Government of Ontario to support manufacturers. To date, direct funding has been provided to more than 400 Ontario companies. Over 1,800 applications were submitted. When the original funding became committed, many worthwhile projects remained unfunded as the demand exceeded the funding available. The FedDev Ontario funding will be used to support approximately 300 projects of those already submitted that can meet a March 31, 2010 completion deadline.

As this program has a proven track record, the Government of Canada’s investment of $15.75 million is a way of extending the life of an effective program. In addition, through this financial partnership, the federal government is assisting in essential productivity gains and job creation in the manufacturing sector across Ontario.

Q. What projects qualify for the CME SMART Program?

A. Eligible manufacturing improvement projects include lean manufacturing, quality improvement, energy efficiency, information technology best practices, and environmental impact reduction. Funds being asked for any capital equipment must go into the facility that has made the application. The CME SMART Program provides up to 50 per cent of eligible project costs, to a maximum of $50,000 per project.

For additional details on the CME SMART Program, please visit www.cme-smart.ca.

Q. How do I apply for CME SMART funding?

A. Applications are not being accepted for this funding. The CME will approve projects from the more than 1,800 applications that they have already received. The federal investment in the program will be used to support approximately 300 projects that can meet a March 31, 2010 completion deadline.

For additional details on the CME SMART Program, please visit www.cme-smart.ca.

Q. When will CME SMART projects be announced?

A. Projects are being reviewed and will be announced shortly.

Q. How does this funding fit into FedDev Ontario’s role in supporting economic and community development, innovation, and economic diversification?

A.Through the Southern Ontario Development Program, the Government of Canada has committed to providing funding to support productivity, innovation, commercialization, community economic development and diversification across the region. This investment in the CME SMART Program promotes the competitiveness and productivity of Ontario manufacturers and supports the provision of goods and services exporters in markets around the world.

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Intake for Food and Beverage Processing Sector

Q. When will projects be announced?
Q. Why is FedDev Ontario providing assistance to the food and beverage processing sector?
Q. How much money is being allocated to this sector?
Q. How does this intake differ from the regular SODP intake?
Q. How will projects be assessed?
Q. What kind of projects fall under FedDev Ontario priorities?
Q. What kind of funding is available?
Q. What are the terms for repayment?
Q. What costs are eligible?
Q. Is the purchase of land, or buildings, or the construction of a building considered an eligible cost?
Q. How much funding can be provided?
Q. Will environmental assessments be required for projects?

Q. When will projects be announced?

A. The Agency will review applications as they are received, and announcements will be made on an ongoing basis.

Q. Why is FedDev Ontario providing assistance to the food and beverage processing sector?

A. The food and beverage processing sector in Ontario is a $33-billion industry, which buys 70 per cent of the production from Ontario farms, and has about 700 establishments in rural communities in Ontario.

Ontario is a leader in high-quality foods for consumers worldwide. The food and beverage processing sector is the second largest manufacturing sector in the province.

The sector, which is the third largest food cluster in North America, employs more than 110,000 people directly, and at least 100,000 people in related industries.

Slow productivity growth and low levels of investment in research and development have challenged the industry. In addition, the rapid increase in input costs and the higher Canadian dollar have impacted the competitiveness of the sector.

Q. How much money is being allocated to this sector?

A. Under this intake, up to $20 million will be available for small- and medium- sized enterprises involved in the manufacturing and processing of food and beverages.

Q. How does this intake differ from the regular SODP intake?

A. Only small- or medium-sized enterprises are eligible to apply to the intake for the food and beverage processing sector. The application deadline is December 22, 2009. Otherwise, the application form, guidelines and assessment criteria are essentially the same.

Q. How will projects be assessed?

A. Project proposals will be assessed against the following criteria:

conformity with FedDev Ontario;
compatibility with SODP objectives;
economic impact of the project;
long-term economic viability of the project;
incremental nature of the assistance;
demonstrated financial need for implementation of the project, taking other existing funding sources into account;
demonstrated evidence that the project meets a recognized need and significantly contributes to a region’s economic development;
applicant’s management capacity;
track record and viability of the enterprise or organization;
applicant’s financial contribution to the project;
degree of leveraging of commercial financing and other sources of financing;
level of risk involved; and
adverse impacts on competition.

Priority will be given to organizations or businesses located in municipalities in Southern Ontario with populations of 500,000 or less, as well as to communities whose economies are less diversified and/or are reliant on a limited number of employers.

FedDev Ontario will favour projects that can be started quickly and completed by March 31, 2010.

FedDev Ontario will take other federal government funding into consideration when determining eligibility under this program. Only in exceptional circumstances will FedDev Ontario consider using SODP funds to support projects that are eligible for funding under other federal government programs.

Q. What kind of projects fall under FedDev Ontario priorities?

A. 1. Competitiveness and Productivity

Projects under this priority aim to foster the competitiveness and productivity of Southern Ontario SMEs. Project proponents should demonstrate, for example, that the project:

is in line with the business’ growth and innovation strategy;
will improve the technological capabilities of the firm;
will further the region’s economic priorities;

2. Innovation and Commercialization

Projects under this priority aim to increase innovation and commercialization in Southern Ontario. Project proponents should demonstrate, for example, that the project will:

help SMEs create new products, processes or services (or improve existing ones) and support their efforts to commercialize these innovations;
support SMEs at developing or implementing export strategies for international markets;
increase SMEs’ capacity to innovate, adopt leading-edge technologies or processes and develop markets.

Q. What kind of funding is available?

Contributions to commercial enterprises are repayable.

Project proponents must commit to measure and report on the results obtained through the implementation projects funded by FedDev Ontario.

Q. What are the terms for repayment?

All repayable contributions are non-interest bearing.

Q. What costs are eligible?

Q. Is the purchase of land, or buildings, or the construction of a building considered an eligible cost?

A. The purchase of land or buildings, or the construction of a building, will generally not be supported as assets of this nature are able to attract commercial financing. Leasehold improvements that are directly attributable to the project may be considered.

Q. How much funding can be provided?

A. For capital projects, up to 50 percent funding is available for eligible costs which include:

Machinery and equipment needed for the project.
Working capital requirements related to an expansion project.
Site improvements such as land clearing and paving required for the project.
Leasehold improvements required for the project.
Leased equipment and expenditures under conditional sales contracts.
Infrastructure (such as water and sewer) required for a specific business development initiative.
Intangible assets such as patents, trademarks and licenses.
Start-up costs such as insurance and interest capitalized during construction.

For non-capital projects, up to 75 percent funding is available for eligible costs which include:

Marketing: Includes the development of a marketing plan, the hiring of marketing expertise to implement the plan, and related marketing activities such as labelling, packaging, promotional materials, advertising, product demonstrations and participation at trade shows.
Training: Includes the development of a training plan, the hiring of training expertise to implement the plan and related activities such as training materials, seminar fees, and wages during the time that employees received off-the-job training.
Productivity/Quality Improvement: Includes the development of a productivity or quality improvement plan, the hiring of expertise to implement the plan, and related activities such as obtaining a recognized quality certification such as ISO, and the cost of needed technical equipment.
Innovations: Includes costs related to researching and developing new or improved products, services and processes such as the labour costs of expertise, materials, special equipment, testing and patents.
Consultant Advice: Includes the cost of hiring a qualified consultant to prepare a business plan, feasibility study, investigate licensing opportunities, conduct a venture capital search, technology transfer search or provide advice to improve your business skills.
Contract bidding: Includes the cost of improving your competitive ability to bid on and acquire public and private sector contracts.
Business proposal development: Includes the cost of turning your idea into a viable business proposal, example the completion of feasibility study, prototype development, and gathering information on markets and raw material suppliers.

These funding limits do not apply to Aboriginal recipients, non-commercial projects from for-profit organizations or projects where total government assistance is $100,000 or less.

Proposals are expected to present a balanced financing package including client equity contributions and commercial financing, with government support levels determined on a needs basis. In all cases, applicants are expected to contribute a minimum of 10% of the eligible costs of the project.

Please note the funding limits represent thresholds for total government funding, including federal and provincial contributions.

Q.Will environmental assessments be required for projects?

A. As part of its project assessment process, the Agency requires that all projects conform with the environmental guidelines set out in the Canadian Environmental Assessment Act.

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Investment in OCC EMA Program

Q. What is the OCC’s Export Market Access Program?
Q. Why are you announcing funding for the OCC’s EMA program?
Q. What projects qualify for the OCC’s EMA Program?
Q. What is the deadline to apply under the EMA Program?
Q. How do I apply for OCC’s EMA funding?
Q. When will OCC EMA approve projects?
Q. How does this funding fit into FedDev Ontario’s role in supporting economic and community development, innovation, and economic diversification?

Q. What is the OCC’s Export Market Access Program?

A. The Export Market Access Program is an initiative of the Ontario Chamber of Commerce aimed at increasing small- and medium-sized enterprises’ (SMEs) access and growth in new foreign markets. To date, direct funding to almost 200 companies has been provided through the Export Market Access (EMA) program.

Q. Why are you announcing funding for the OCC’s EMA program?

A. In today’s global economy, it is imperative to help Southern Ontario businesses access international markets so they can remain competitive. The Government of Canada is pleased to partner with the Ontario Chamber of Commerce for this initiative, which will increase export sales of Ontario goods and services.

As part of FedDev Ontario’s effort to use existing programs and partnerships to expedite the provision of funds, the EMA program is an excellent vehicle to leverage investments that will increase export sales of Ontario’s goods and services, thereby strengthening the economy. It will also support two trade missions: one to China and Hong Kong, and one to India.

As this program has a proven track record, the Government of Canada’s investment of $1.6 million is a way of extending the life of a successful initiative to increase productivity and create jobs across Ontario.

Q. What projects qualify for the OCC’s EMA Program?

A. For a full list of program criteria and eligibility, please visit the OCC’s EMA Program website at http://exportaccess.ca or contact the EMA team at 416-482-5222.

Q. What is the deadline to apply under the EMA Program?

Q. How do I apply for OCC’s EMA funding?

A. Applicants can submit proposals containing up to two markets and are able to apply under more than one category. EMA will provide a decision within 30 business days upon receipt of a complete application. To access the application form, please visit http://exportaccess.ca/ and follow the instructions contained in the User Guide for the On-Line Application. Applications must be submitted on-line.

For more information on the EMA program, visit http://exportaccess.ca/ or contact the EMA team at 416-482-5222.

Q.When will OCC EMA approve projects?

A. EMA is a continuous intake program and as such applications are processed as they are received. Applicants are encouraged to submit their project-ready applications to the Ontario Chamber of Commerce. Applications will be assessed based on merit and against EMA criteria. The EMA will provide a decision within 30 business days upon receipt of a complete application. The Ontario Chamber of Commerce will announce funded projects on a quarterly basis.

Q. How does this funding fit into FedDev Ontario’s role in supporting economic and community development, innovation, and economic diversification?

A. Through the Southern Ontario Development Program, the Government of Canada has committed to providing funding to support productivity, innovation, commercialization, community economic development and diversification across the region. This investment in the OCC EMA Program promotes the competitiveness and productivity of Ontario enterprises and supports the provision of goods and services exporters in markets around the world.

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General Intake for 2009/10

Investment in CME SMART Program

Intake for Food and Beverage Processing Sector

Investment in OCC EMA Program

General

General Intake for 2009/10

Investment in CME SMART Program

Intake for Food and Beverage Processing Sector

Investment in OCC EMA Program