Federal Economic Development Agency for Southern Ontario
Symbol of the Government of Canada

FAQs

    General

  1. What is the Community Adjustment Fund?
  2. Why is the Government of Canada funding community adjustment?
  3. Who will benefit from CAF?
  4. Who is responsible for the Fund?
  5. How much funding is available under the program?
  6. How does CAF fit with other Economic Action Plan initiatives that have been announced?
  7. Are funds being allocated for the National Research Council-Industrial Research Assistance Program under the CAF 2010-11 funding?
  8. Are funds being allocated for Community Futures Development Corporations under the CAF 2010-11 funding?
  9. Will this be a permanent program?
  10. How will the government ensure appropriate accountability for the use of public funds?
  11. Has funding been announced for CAF in Northern Ontario?
  12. Has funding been announced for CAF in Southern Ontario?
  13. Intake One

  14. If I submitted an application for CAF in Southern Ontario, how can I find out if I received funding?
  15. How many applications were received under the program in Southern Ontario?
  16. How did you select projects for funding?
  17. Why was my application not recommended for funding?
  18. If a project wasn’t funded, what can applicants do to find out why?
  19. My project was approved for funding. What are the next steps?
  20. Do I need a federal Environmental Assessment completed for my project?
  21. Why am I required to put up an Economic Action Plan sign?
  22. How do I go about producing an Economic Action Plan sign?
  23. Why is the federal government paying for sign production?
  24. Who is responsible for installing the sign?
  25. What do I do if my sign is damaged?
  26. The majority of my project involves work taking place indoors. Where should I install a sign?
  27. How long must the sign remain after the project is completed?
  28. Work on our project will be completed shortly, do we still need to install a sign?
  29. What do I do with the sign once the 90-day period after the project construction has ended?
  30. We would like to recognize our contribution/the contributions of other partners through signage. Can we do so?
  31. I received federal funding for another project under another infrastructure program (i.e., the Building Canada Fund, Infrastructure Stimulus Fund, Recreational Infrastructure Canada Program in Ontario). Will I also be receiving a sign for that project?
  32. I have specific questions about my sign, who can I contact?
  33. Intake Two

  34. When will applicants find out if their project will be supported under the second intake of the Community Adjustment Fund?
  35. How is Intake Two different from Intake One?
  36. How is CAF Intake Two different from the Southern Ontario Development Program?
  37. How did you select projects for funding?
  38. My project was approved, but why did I not receive the full amount of funding requested?
  39. Do I need a federal Environmental Assessment completed for my project?
  40. How much funding is available?
  41. When is a contribution repayable?
  42. What are the terms for repayment?
  43. How will the Government of Canada flow funding to recipients?
  44. What costs are eligible?
  45. What costs are ineligible?
  46. How will the government ensure appropriate accountability for the use of public funds?
  47. What is the maximum percentage of total government funding that a project can receive?
  48. Is there a minimum or maximum total government funding amount for any single project?
  49. If a project was funded, what are the next steps?
  50. Will we be able to extend the construction deadline?
  51. Will any more economic development funding be available in southern Ontario?

General

Q1. What is the Community Adjustment Fund?

A. The Community Adjustment Fund is intended to provide economic stimulus to mitigate the short-term impacts of the economic downturn by creating employment opportunities and to address transitional and adjustment challenges in restructuring industries or communities. The Fund is a national two-year, $1-billion economic stimulus measure announced as part of the Government of Canada’s Economic Action Plan



Q2. Why is the Government of Canada funding community adjustment?

A. The current global economic downturn is having a considerable impact on many communities across Canada. Canada’s manufacturing and resource-based sectors have suffered from drops in both demand and prices. Resulting job losses in sectors such as forestry, mining and manufacturing have been significant.



Q3. Who will benefit from CAF?

A. Many communities across Canada rely on industrial sectors that have been hit hard by current economic conditions, including forestry, mining, agriculture, fisheries and manufacturing. The Fund will give priority to communities that are severely affected by the global economic downturn such as resource-based communities that depend on a limited industry base.



Q4. Who is responsible for the Fund?

A. The Community Adjustment Fund is an initiative of the Government of Canada. It is being delivered across the country by the regional development agencies (Atlantic Canada Opportunities Agency, Community Economic Development for the Regions of Quebec, Western Diversification), and Indian and Northern Affairs Canada.

In Northern Ontario, the Minister of Industry and Minister responsible for FedNor has responsibility for the program. In Southern Ontario, the Minister of State responsible for the Federal Economic Development Agency of Southern Ontario (FedDev Ontario) has responsibility for the program.



Q5. How much funding is available under the program?

A. In 2010-11, CAF is providing $127.8 million for projects in southern Ontario, via an intake process.



Q6. How does CAF fit with other Economic Action Plan initiatives that have been announced?

A. The Community Adjustment Fund is one of several initiatives in Canada’s Economic Action Plan that will help mitigate the impacts of the global economic downturn on our communities. Other investments include the $4-billion Infrastructure Stimulus Fund that provides funding to renew aging infrastructure; the $1-billion Green Infrastructure Fund that assists with projects like public transit, sustainable energy and waste management; and the $500-million Recreational Infrastructure Canada initiative that supports construction of new community recreational facilities and upgrades to existing facilities across Canada.



Q7. Are funds being allocated for the National Research Council-Industrial Research Assistance Program under the CAF 2010-11 funding?

A. Our strategic investment in the National Research Council-Industrial Research Assistance Program ($27.5 million through FedDev Ontario and $17.5 million through the Community Adjustment Fund) is supporting job creation for R&D-intensive small- and medium-sized businesses across southern Ontario. The Agency is now building capacity to manage and deliver its own programming.



Q8. Are funds being allocated for Community Futures Development Corporations under the CAF 2010-11 funding?

A. CFDCs are eligible to submit applications under the intake process.



Q9. Will this be a permanent program?

A. No. The Community Adjustment Fund is a two-year program. Although the focus of CAF will be to help create and maintain jobs in the short-term, projects that address transitional and adjustment challenges yielding economic benefits over longer terms will also be considered.



Q10. How will the government ensure appropriate accountability for the use of public funds?

A. The Community Adjustment Fund is designed to complement existing government programs and services. Projects eligible for funding under other existing federal infrastructure programs will be ineligible for CAF. Recipients are required to report quarterly on activities and outcomes as projects are being implemented.



Q11. Has funding been announced for CAF in Northern Ontario?

A. Should you have questions or inquiries with regard to the Community Adjustment Fund in Northern Ontario, please visit www.ic.gc.ca/caf.



Q12. Has funding been announced for CAF in Southern Ontario?

A. Up to $102 million will be invested through the Community Adjustment Fund (CAF) and it is the government's intention to support a total of 90 projects in communities across Southern Ontario that are struggling with the effects of the global economic downturn.

Investments in these projects will provide relief for communities experiencing the effects of the global recession by creating jobs and stimulating local economic activity.



Intake One

Q13. If I submitted an application for CAF in Southern Ontario, how can I find out if I received funding?

A. A complete list of funded projects in Southern Ontario is available online.



Q14. How many applications were received under the program in Southern Ontario?

A. There was a great deal of interest in the first intake of the Community Adjustment Fund. Municipalities, not-for-profit and First Nations organizations submitted nearly 600 applications with total requested funding of more than $750 million. There were many good applications that allowed us to fund as many projects as we did. However, the demand was far more than the total funding available for the intake.



Q15. How did you select projects for funding?

A. All project applications were reviewed against the eligibility requirements, including the ability for the project to be substantially completed by March 31, 2010, and priority was given to projects that demonstrated the greatest ability to meet the following criteria:

  • project readiness;
  • generate immediate employment;
  • create the most jobs per dollar invested;
  • leverage funds from the province and other funding partners;
  • build on collaboration agreements already in place (e.g. federal-provincial agreements and existing programs); and
  • provide a legacy of longer-term ecological and/or economic benefits.


Q16. Why was my application not recommended for funding?

A. Many good applications were submitted and therefore some difficult decisions had to be made. All project applications were reviewed against the eligibility requirements and priority was given to projects that best met the selection criteria. However, the demand was far more than the total funding available for the intake.



Q17. If a project wasn’t funded, what can applicants do to find out why?

A. Applicants should contact FedDev Ontario at 1-866-593-5505 or by email.



Q18. My project was approved for funding. What are the next steps?

A. Over the coming weeks, staff from FedDev Ontario will develop a Letter of Offer with you to provide an implementation framework and contracting details, as well as outline environmental assessment, communications and signage requirements for funded projects. Recipients may begin construction and are able to incur eligible costs as of the announcement date of August 27, 2009. However, funding recipients must meet the terms and conditions outlined in the Letter of Offer before being reimbursed for costs incurred.



Q19. Do I need a federal Environmental Assessment completed for my project?

A. To allow construction to begin more quickly after funded projects are announced, a preliminary environmental assessment (EA) screening has been completed.

Some projects will require a federal EA before construction can begin and a Project Officer will be in contact with all funding recipients shortly to discuss these requirements.



Q20. Why am I required to put up an Economic Action Plan sign?

A. On January 27, the Government of Canada launched the Economic Action Plan to stimulate the economy as a response to the global economic downturn. The federal government has recently developed a comprehensive signage strategy to ensure that all projects funded under the Economic Action Plan follow a single, consistent brand. This will ensure that all programs, services and initiatives related to the Economic Action Plan are visible, accessible and accountable to Canadians.

In order for this strategy to be executed in a timely and efficient manner, we are requesting that all Economic Action Plan project signs be installed within one week of receiving them.



Q21. How do I go about producing an Economic Action Plan sign?

A. You do not need to have an Economic Action Plan sign produced; the sign will be mailed to you within the coming weeks.



Q22. Why is the federal government paying for sign production?

A. The federal government is producing signage as a bulk order given the priority the government places on Economic Action Plan signage, the fact that authority documents such as Letters of Offer have not yet been sent to recipients, and since there were categories of recipients that were eligible who are not as familiar with government signage requirements.



Q23. Who is responsible for installing the sign?

A. Funding recipients are responsible for installing the sign at the site location. You will be sent the sign as well as mounting posts in the coming weeks.



Q24. What do I do if my sign is damaged?

A. Please contact the FedDev Ontario by phone at 1-866-593-5505 or by email if your sign is damaged.



Q25. The majority of my project involves work taking place indoors. Where should I install a sign?

A. Please install your sign in a visible location outdoors, even if the work is taking place indoors.



Q26. How long must the sign remain after the project is completed?

A. A sign should remain installed at the project site for 90 days after construction is completed.



Q27. Work on our project will be completed shortly, do we still need to install a sign?

A. Yes, all projects should have a sign installed for the duration of the 90 day period after the project is completed.



Q28. What do I do with the sign once the 90-day period after the project construction has ended?

A. Please arrange for sign removal and recycling following the 90-day period. However, if any other funding partner has installed a sign on-site, the federal government sign should remain installed until other such signs are removed.



Q29. We would like to recognize our contribution/the contributions of other partners through signage. Can we do so?

A. Project signage is an important way to promote awareness of infrastructure projects taking place in communities across Canada. The Government of Canada recognizes that there may be other contributors to your project. You are welcome to install a sign that represents the other contributors to the project, and/or others involved in the project, such as design, engineering, construction or project management companies.



Q30. I received federal funding for another project under another infrastructure program (i.e., the Building Canada Fund, Infrastructure Stimulus Fund, Recreational Infrastructure Canada Program in Ontario). Will I also be receiving a sign for that project?

A. Each program has its own signage requirements. Please check the requirements for the specific programs under which your other project was approved. For the Building Canada Fund and the Infrastructure Stimulus Fund, please refer to www.bcfontario.ca. For the Recreational Infrastructure Canada Program in Ontario, please refer to www.rinc-on.ca.



Q31. I have specific questions about my sign, who can I contact?

A. Please contact FedDev Ontario by phone at 1-866-593-5505 or by email.



Intake Two

Q32. When will applicants find out if their project will be supported under the second intake of the Community Adjustment Fund?

A. Local announcements will be taking place over the coming weeks.



Q33. How is Intake Two different from Intake One?

A. Over the past few months, FedDev Ontario has been talking to stakeholders about their challenges and how the Agency’s programs can help. We have incorporated some of that feedback into this intake process. The most notable example is that SMEs are now eligible under CAF.

Intake two differs from Intake One in the following ways:

  • commercial enterprises (with a focus on small- and medium-sized enterprises, defined as having up to 1,000 employees) have been added as eligible applicants;
  • projects must be completed by March 31, 2011;
  • a business plan or business case must be submitted in support of the application; please refer to the templates provided on the website for Business Plans and for Business Cases; and
  • for ease of applying and to allow for the uploading of larger attachments, you may now submit your application online.



Q34. How is CAF Intake Two different from the Southern Ontario Development Program?

A. The Community Adjustment Fund differs from the Southern Ontario Development Program by focusing on communities that have been hit hard by current economic conditions, such as single-industry communities that depend on a limited industry base. Only projects in communities with populations of less than 250,000 and that meet other specific criteria outlined in the program guidelines are eligible.



Q35. How did you select projects for funding?

A. All project applications were reviewed against the eligibility requirements, including the ability for the project to be substantially completed by March 31, 2011, and priority was given to projects that demonstrated the greatest ability to meet the following criteria:

  • create immediate and sustained employment;
  • create the most jobs per dollar invested; 
  • build on collaborative agreements already in place (e.g., federal-provincial agreements and existing programs);
  • provide a legacy of longer-term ecological and/or economic benefits; and
  • demonstrate leveraging of other sources of financing.


Q36. My project was approved, but why did I not receive the full amount of funding requested?

A. Eligible costs under the Community Adjustment Fund include specific incremental costs that are considered reasonable and necessary for the completion of the project. Only costs that are directly related to the eligible activities were approved. Examples of eligible costs include labour costs, materials, capital costs, research and development, and administrative expenses. The funding amounts requested in applications were verified to remove ineligible project costs, which cannot be supported by CAF and these were removed.



Q37. Do I need a federal Environmental Assessment completed for my project?

A. preliminary pre-screening is done to assess whether or not a federal environmental assessment (EA) is required for the project.  If required, funding is contingent upon the successful completion of an EA and a Project Officer will be in contact with all funding recipients shortly to discuss these requirements. 



Q38. How much funding is available?

A.  Under the second intake, $127.8 million will be made available to eligible projects. 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.



Q39. When is a contribution repayable?

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

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



Q40. 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 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.



Q41. How will the Government of Canada flow funding to recipients?

A. Contributions are normally paid on a reimbursement basis, through signed contribution agreements, against eligible costs incurred once the project is approved and initiated.



Q42. What costs are eligible?

A. Eligible costs include specific incremental costs that are considered reasonable and necessary for the completion of the project. Only costs that are directly related to the eligible activities will be allowed. Examples of eligible costs include labour costs, materials, capital costs, research and development, and administrative expenses.



Q43. What costs are ineligible?

A. The following costs are not eligible:

  • cost of membership in a professional body;
  • fines and penalties;
  • capital depreciation;
  • non-incremental wages and/or fees for administrators;
  • land or vehicle purchase;
  • the tax on goods and services (GST or any similar tax) and any Ontario sales tax eligible for repayment or input tax credit;
  • the applicant’s current debts;
  • any costs that are not incremental to the applicant;
  • any costs that are not directly related to the project; and
  • ongoing or normal operating costs.


Q44. How will the government ensure appropriate accountability for the use of public funds?

A. Approved projects will be monitored by FedDev Ontario and recipients will be required to report quarterly on activities and outcomes as projects are being implemented.



Q45. What is the maximum percentage of total government funding that a project can receive?

A. Please refer to the maximum percentage funding amounts and the funding limits outlined in the program guidelines, which vary depending on the nature of the applicant and project.



Q46. Is there a minimum or maximum total government funding amount for any single project?

A. There is no minimum amount of funding for any single project. The maximum amount is $20 million per project.



Q47. If a project was funded, what are the next steps?

A. Over the coming weeks, staff from FedDev Ontario will develop a Contribution Agreement with funding recipients to provide an implementation framework and contracting details and repayment terms, if applicable, as well as outline environmental assessment, communications and signage requirements for funded projects. Funding recipients must meet the terms and conditions outlined in the Contribution Agreement before being reimbursed for costs incurred.



Q48. Will we be able to extend the construction deadline?

A. No extensions will be provided. The goal of the March 31, 2011 deadline is to create jobs in the short-term to provide timely economic stimulus. The deadline was clearly outlined in the application materials.



Q49. Will any more economic development funding be available in southern Ontario?

A. When any new funding is available from FedDev Ontario, a public announcement will be made. You are encouraged to subscribe to email updates available on the FedDev Ontario website.