Prosperity Initiative Guidelines

Background

The recent global economic recession had a significant impact on southern Ontario. The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is targeting its investments to support strategic projects that will create a southern Ontario Advantage.

The Prosperity Initiative aims to encourage businesses and/or not-for-profit organizations to undertake projects that will result in the diversification and enhanced competitiveness of southern Ontario regions and sectors through:

• The adaptation and adoption of new technologies, processes and skills to enhance business productivity in southern Ontario;
• The development of new industries or opportunities that will help diversify the economy of a region or community of southern Ontario; and/or
• The development and expansion of strategic economic clusters that will build on the assets and strengths of southern Ontario and increase its competitiveness within the global economy.

The initiative will have a two-phased application process. In Phase 1, applicants will complete a Statement of Intent outlining the applicant's intent, project scope, alignment with Prosperity Initiative objectives, project stakeholders, future outcomes, overall costs and funding sources. Upon written confirmation from FedDev Ontario that the application may proceed to Phase 2, applicants may submit a full application and business plan for review.

Objective

The Prosperity Initiative aims to build on the strengths of businesses, not-for-profit organizations and regions to increase southern Ontario's competitive advantages by supporting projects aligned with the following objectives:

1. Productivity Enhancements – Projects aligned with this objective will accelerate the adoption of new technologies, processes and skills to enhance businesses and sectors in southern Ontario to achieve higher output in relation to their investments. See Annex A for project guidelines related to Productivity Enhancements.
2. Regional Diversification – Projects aligned with this objective will increase the number of new industries or opportunities in southern Ontario communities and regions with the potential to have long-term impacts on the community's or region's economic diversity. See Annex B for project guidelines related to Regional Diversification.
3. Building a Competitive Advantage – Projects aligned with this objective will build on the assets and strengths of southern Ontario businesses and regions to create or expand economic clusters and enhance their global competitiveness. See Annex C for project guidelines related to Building a Competitive Advantage.

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Annex A

Productivity Enhancements

Eligibility

Applicants must be planning to undertake projects that result in the adaptation and adoption of new technologies, processes and skills development that will enhance business productivity in their sector or industry.

Priority will be given to projects most able to engage not-for-profit or private sector participation and generate significant long-term economic benefits.

I. Eligible Recipients

Eligible recipients will be not-for-profit corporations located in southern Ontario. Priority may be given to organizations representing a sector or industry in the following areas:

• Environmental science and technologies;
• Natural resources and energy;
• Health and related life sciences and technologies, including the food and beverage industry; and
• Information and communications technologies.

For the purposes of eligibility, southern Ontario is defined by the following 2006 Statistics Canada Census Regions:

Stormont, Dundas and Glengarry; Prescott and Russell; Ottawa; Leeds and Grenville; Lanark; Frontenac; Lennox and Addington; Hastings; Prince Edward; Northumberland; Peterborough; Kawartha Lakes; Durham; York; Toronto; Peel; Dufferin; Wellington; Halton; Hamilton; Niagara; Haldimand-Norfolk; Brant; Waterloo; Perth; Oxford; Elgin; Chatham-Kent; Essex; Lambton; Middlesex; Huron; Bruce; Grey; Simcoe; Haliburton; and Renfrew.

A list of the communities that form part of each census division is available online.

Additional information about priority areas for the Productivity Enhancements component of the Prosperity Initiative is provided under Application Review.

II. Ineligible Recipients

Ineligible recipients include:

• Federal and provincial government departments, agencies, boards, corporations and commissions;
• Municipal governments;
• Post-secondary institutions (e.g. colleges, polytechnic institutes, universities and teaching institutions); and
• For-profit organizations.

III. Eligible Activities

The Prosperity Initiative will support eligible recipients to undertake activities within southern Ontario including:

• Improvements to enhance the productivity of an industry/sector;
• Adaptation and adoption of new technologies, processes and skills development in an industry/sector leading to significant productivity improvements.

IV. Eligible Costs

Direct eligible costs for project activities may include:

• Labour and operating expenditures;
• Materials and supplies;
• Capital costs, excluding land and buildings;
• Consulting and/or professional fees (limited to market rate);
• Travel and meeting costs;
• Minor and non-capital acquisitions (e.g., software); and
• Administration (to a maximum of five per cent of eligible and supported costs).

V. Ineligible Costs

Costs that are deemed unreasonable, not incremental and/or not directly related to the eligible project activities will be ineligible. Costs incurred prior to the date of approval of a Prosperity Initiative proposal will not normally be supported.

Food and accommodation costs will not be supported.

FedDev Ontario support is not intended to fund ongoing core operational costs or to replace available commercial financing. Any portion of expenditures that could be financed by cash equity, commercial financing and/or capital markets will not normally be supported.

Funding

Not-for-profit corporations representing a sector or industry will be eligible for non-repayable contributions toward direct eligible project costs to a maximum of $20 million. Applicants will normally be expected to contribute a minimum of 10 per cent of eligible project costs. Contributions to not-for-profit corporations are normally non-repayable, provided the benefits from the contribution will accrue broadly to the industry or sector as a whole.

The applicant may propose to further distribute the contribution to third-party small- and medium-sized enterprise (SME) recipients in the form of non-repayable contributions to a maximum of $100,000 per third-party recipient. Such further distributions must comply with all other conditions of the initiative and require a minimum 50 per cent contribution from the SME recipient to the project.

Application Process

To apply to the Prosperity Initiative, applicants must first submit a Statement of Intent. Upon written confirmation from FedDev Ontario that the application can proceed to Phase 2, applicants will be asked to submit a full application.

Phase 1 — Statement of Intent:

1. Complete a Statement of Intent application form;
2. Complete and submit an Applicant Declaration on Lobbying;
3. Attach a brief summary of how the proposed project will result in each of the following outcomes:
   • Acceleration of the adoption/adaptation of new technologies, processes and skills that will result in productivity enhancements across a sector or industry;
   • The creation and strengthening of market-oriented collaborative initiatives or strategic alliances;
   • Creation of long-term employment and high-value jobs; and
   • Improved productivity of businesses within a sector or industry.
4. Attach a copy of the applicant organization's most recent year-end financial statements.

Statements of Intent for the Prosperity Initiative can be submitted online or by mail to FedDev Ontario's Kitchener office. Statements of Intent will be accepted on a continuous basis.

Phase 2 — Full Application:

Upon written confirmation from FedDev Ontario that the application may proceed to Phase 2, applicants must submit a detailed business plan. Information required in the business plan and submission details will be provided to applicants who receive written confirmation to proceed to a full application.

Note

• A complete Statement of Intent application package must be submitted to determine your proposal's eligibility.
• Before completing your application, carefully review these guidelines to ensure your organization is an eligible recipient and your proposal activities and objectives fit within the Prosperity Initiative objectives and criteria for Productivity Enhancements.
• Written confirmation that an application may proceed to Phase 2 of the application process should not be interpreted as FedDev Ontario approval of the proposed project.

Application Review

Applications will be evaluated on their ability to achieve Prosperity Initiative objectives and to meet the following criteria:

• Applicant can demonstrate it has an established track record in the delivery of projects relating to industry enhancements and large-scale collaborative project delivery;
• Applicant has the management, technical, program development and other expertise and resources required to complete the proposed project;
• Applicants applying on behalf of a sector or industry represent the key project stakeholders;
• Applicants have established a clearly articulated project governance structure and decision-making process;
• Project addresses a need identified by end users and will not duplicate existing efforts or projects;
• Project will achieve outcomes such as:
  • Acceleration of the adoption/adaptation of new technologies, processes and skills that will result in productivity enhancements across a sector or industry;
  • The creation and strengthening of market-oriented collaborative initiatives or strategic alliances;
  • Improved productivity of businesses within a sector or industry;
  • Increased competitiveness and economic growth in southern Ontario;
• Accountability mechanisms are in place to ensure due diligence in administering public funds and ability to report on performance measures; and
• Identification of a person and position responsible for project delivery.

All project activities must be completed by March 31, 2014.

Multiple Applications for Government Funding

FedDev Ontario will take other government funding into consideration when determining eligibility. Contributions under the Prosperity Initiative will be conditional upon total government assistance (as defined in the Treasury Board Directive on Transfer Payments) being limited to 100 per cent of eligible costs. In no instance will the total government assistance be allowed to exceed the eligible costs. Recipients must confirm with their investors whether any of their funding comes from other government sources.

All recipients of financial assistance are required to inform FedDev Ontario before the start and at the end of a project of any other government assistance (federal, provincial/territorial or municipal) received or requested for the eligible costs of the project that are described in the contribution agreement. The contribution agreement also contains a "continuing disclosure" obligation concerning other government assistance and provides for the right of FedDev Ontario to reduce the contribution to the extent of any such assistance or require the recipient to repay the excess to the Crown.

FedDev Ontario reserves the right to modify these guidelines at any time without notice and may waive certain requirements on an exceptional basis.

Reporting Requirements

Recipients must submit to FedDev Ontario reports of project expenditures and completion of deliverables, including achievement of performance indicators identified in contribution agreements. Examples of performance indicators may include projected increase in sales as a result of the project, total funding leverage, productivity ratios, and person months of employment created/maintained by project.

Contact Us

For more information on FedDev Ontario's Prosperity Initiative, please email or call 1-866-593-5505.

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Annex B

Regional Diversification

Eligibility

Applicants must be planning to undertake projects resulting in the establishment of new industries or opportunities that will help to diversify the economy of a region or community in southern Ontario. Applicants must be able to demonstrate significant impact on a region (e.g., increased investment, increased long-term employment opportunities).

Priority will be given to projects most able to leverage matching private sector or other non-governmental financial support, engage not-for-profit or private sector participation and generate significant economic benefits that will continue beyond the life of the Prosperity Initiative.

Projects from communities or regions with less diversified economies that are reliant on a limited number of employers, or located within a distressed region of southern Ontario may be given priority.

I. Eligible Recipients

Eligible recipients under this objective shall normally be restricted to small- and medium-sized enterprises (SMEs) (under 1000 employees) in southern Ontario and regional or community-based not-for profit corporations in southern Ontario.

Regionally based applications and applications submitted by one organization on behalf of collaborating parties are encouraged.

Priority may be given to organizations representing a sector or industry in the following areas:

• Environmental science and technologies;
• Natural resources and energy;
• Health and related life sciences and technologies, including the food and beverage industry; and
• Information and communications technologies.

For the purposes of eligibility, southern Ontario is defined by the following 2006 Statistics Canada Census Regions:

Stormont, Dundas and Glengarry; Prescott and Russell; Ottawa; Leeds and Grenville; Lanark; Frontenac; Lennox and Addington; Hastings; Prince Edward; Northumberland; Peterborough; Kawartha Lakes; Durham; York; Toronto; Peel; Dufferin; Wellington; Halton; Hamilton; Niagara; Haldimand-Norfolk; Brant; Waterloo; Perth; Oxford; Elgin; Chatham-Kent; Essex; Lambton; Middlesex; Huron; Bruce; Grey; Simcoe; Haliburton; and Renfrew.

A list of the communities that form part of each census division is available online.

Additional information about priority areas for the Regional Diversification component of the Prosperity Initiative is provided under Application Review.

II. Ineligible Recipients

Ineligible recipients include:

• Federal and provincial government departments, agencies, boards, corporations and commissions;
• Post-secondary institutions (e.g. colleges, polytechnic institutes, universities and teaching institutions); and
• Municipal governments.

III. Eligible Activities

The Prosperity Initiative will support eligible recipients to undertake activities within southern Ontario including:

• Creation of new opportunities for economic diversification;
• Market development and expansion;
• Business attraction to diversify regional or community economies; and
• Business expansion supporting greater diversification.

IV. Eligible Costs

Direct eligible costs for project activities may include:

• Labour and operating expenditures;
• Materials and supplies;
• Capital costs, excluding land acquisition;
• Consulting and/or professional fees (limited to market rate);
• Travel and meeting costs;
• Minor capital and non-capital acquisitions (e.g., software); and
• Administration (to a maximum of five per cent of eligible and supported costs).

V. Ineligible Costs

Costs that are deemed unreasonable, not incremental and/or not directly related to the eligible project activities will be ineligible. Costs incurred prior to the date of approval of a Prosperity Initiative proposal will not normally be supported.

Food and accommodation costs will not be supported.

FedDev Ontario support is not intended to fund ongoing core operational costs or to replace available commercial financing. Any portion of expenditures that could be financed by cash equity, commercial financing and/or capital markets will not normally be supported. The purchase of 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.

Funding

For-profit enterprises will be eligible for repayable contributions of up to 50 per cent of direct eligible capital project costs and up to 75 per cent of direct eligible non-capital costs to a maximum of $20 million.

Not-for-profit corporations will be eligible for non-repayable contributions toward of direct eligible project costs to a maximum of $20 million. Normally, applicants will be expected to contribute a minimum of 10 per cent of the eligible costs of the project.

Application Process

To apply to the Prosperity Initiative, applicants must first submit a Statement of Intent. Upon written confirmation from FedDev Ontario that the application may proceed to Phase 2, applicants will be asked to submit a full proposal.

Phase 1 — Statement of Intent:

1. Complete a Statement of Intent application form;
2. Complete and submit an Applicant Declaration on Lobbying;
3. Attach a brief summary of how the proposed project will result in each of the following outcomes:
   • Increased number of new industries established in southern Ontario that will help diversify and create new longer-term opportunities in southern Ontario regional or community economies;
   • The creation and strengthening of market-oriented collaborative initiatives or strategic alliances;
   • Enhanced economic diversification and sustainability of southern Ontario regions; and
   • Creation of long-term employment and high-value jobs.
4. Attach a copy of the applicant organization's most recent year-end financial statements.

Statements of Intent for the Prosperity Initiative can be submitted online or by mail to FedDev Ontario's Kitchener office. Applications will be accepted on a continuous basis.

Phase 2 — Full Application:

Upon written confirmation from FedDev Ontario that the application may proceed to Phase 2, applicants must submit a detailed business plan. Information required in the business plan and submission details will be provided to applicants who receive written confirmation to proceed to a full application.

Note

• A complete Statement of Intent application package must be submitted to determine your proposal's eligibility.
• Before completing your application, carefully review these guidelines to ensure your organization or company is an eligible recipient and your proposal activities and objectives fit within the Prosperity Initiative Regional Diversification objectives and criteria.
• Written confirmation that an application may proceed to Phase 2 of the application process should not be interpreted as FedDev Ontario approval of the proposed project.

Application Review

Applications will be evaluated on their ability to achieve Prosperity Initiative objectives and to meet the following criteria:

• Applicant can demonstrate it has an established track record in the delivery of projects relating to industry enhancements, economic diversification, or large-scale collaborative project delivery;
• Applicant has the management, technical, program development and other expertise and resources required to complete the proposed project;
• Applicants applying on behalf of a collaboration represent the key project stakeholders;
• Applicants have established a clearly articulated project governance structure and decision-making process;
• Project addresses a need identified by end users and will not duplicate existing efforts or projects;
• Project will achieve outcomes such as:
  • The diversification of southern Ontario regions or communities towards new, sustainable economic activity;
  • The creation and strengthening of market-oriented collaborative initiatives or strategic alliances;
  • Enhanced economic diversification and sustainability of southern Ontario regions;
  • Creation of long-term employment and high-value jobs;
• Accountability mechanisms are in place to ensure due diligence in administering public funds and ability to report on performance measures; and
• Identification of a person and position responsible for project delivery.

All project activities must be completed by March 31, 2014.

Multiple Applications for Government Funding

FedDev Ontario will take other government funding into consideration when determining eligibility. Contributions under the Prosperity Initiative will be conditional upon total government assistance (as defined in the Treasury Board Directive on Transfer Payments) being limited to:

• Up to 75 per cent of eligible non-capital costs and 50 per cent of eligible capital costs to for-profit entities; and
• Up to 100 per cent of eligible costs for not-for-profit entities.

In no instance will the total government assistance be allowed to exceed the eligible costs. Recipients must confirm with their investors whether any of their funding comes from federal or provincial sources.

All recipients of financial assistance are required to inform FedDev Ontario before the start and at the end of a project of any other government assistance (federal, provincial/territorial or municipal) received or requested for the eligible costs of the project that are described in the contribution agreement. The contribution agreement also contains a "continuing disclosure" obligation concerning other government assistance and provides for the right of FedDev Ontario to reduce the contribution to the extent of any such assistance or require the recipient to repay the excess to the Crown.

FedDev Ontario reserves the right to modify these guidelines at any time without notice and may waive certain requirements on an exceptional basis.

Reporting Requirements

Recipients must submit to FedDev Ontario reports of project expenditures and completion of deliverables, including achievement of performance indicators identified in contribution agreements. Examples of performance indicators may include projected increase in sales as a result of the project, total funding leverage, and person months of employment created/maintained by project.

Contact Us

For more information on FedDev Ontario's Prosperity Initiative, please email or call 1-866-593-5505.

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Annex C

Building a Competitive Advantage

Eligibility

Applicants must be planning to undertake projects that will enhance economic clusters in southern Ontario that have or are developing a significant position in producing products or services within the global economy.

Priority will be given to projects most able to leverage matching private sector or other non-governmental financial support, engage not-for-profit or private sector participation and generate significant economic benefits that will continue beyond the life of the Prosperity Initiative.

Projects from communities with less diversified economies, communities that are reliant on a limited number of employers, or communities located within a distressed region of southern Ontario may be given priority.

I. Eligible Recipients

Eligible recipients under this objective shall normally be restricted to not-for-profit corporations representing industry sectors or regions (i.e., multi-community), innovation / commercialization centres, post-secondary institutions, and small- and medium-sized enterprises (SMEs) (under 1000 employees) located in southern Ontario. Applications submitted by one organization on behalf of collaborating parties are encouraged.

Priority may be given to organizations representing a sector or industry in the following areas:

• Environmental science and technologies;
• Natural resources and energy;
• Health and related life sciences and technologies, including the food and beverage industry; and
• Information and communications technologies.

For the purposes of eligibility, southern Ontario is defined by the following 2006 Statistics Canada Census Regions:

Stormont, Dundas and Glengarry; Prescott and Russell; Ottawa; Leeds and Grenville; Lanark; Frontenac; Lennox and Addington; Hastings; Prince Edward; Northumberland; Peterborough; Kawartha Lakes; Durham; York; Toronto; Peel; Dufferin; Wellington; Halton; Hamilton; Niagara; Haldimand-Norfolk; Brant; Waterloo; Perth; Oxford; Elgin; Chatham-Kent; Essex; Lambton; Middlesex; Huron; Bruce; Grey; Simcoe; Haliburton; and Renfrew.

A list of the communities that form part of each census division is available online.

Additional information about priority areas for the Building a Competitive Advantage component of the Prosperity Initiative is provided under Application Review.

II. Ineligible Recipients

Ineligible recipients include:

• Federal and provincial government departments, agencies, boards, corporations and commissions; and
• Municipal governments.

III. Eligible Activities

The Prosperity Initiative will support eligible recipients to undertake activities to enhance the competitiveness of an industry/sector cluster, such as:

• Adaptation and adoption of new technologies, processes and skills development in an industry/sector;
• Technology demonstration and piloting;
• Business opportunity development and expansion; and
• Facilities improvement or expansion.

IV. Eligible Costs

Direct eligible costs for project activities may include:

• Labour and operating expenditures;
• Materials and supplies;
• Capital costs, excluding land acquisition;
• Consulting and/or professional fees (limited to market rate);
• Travel and meeting costs;
• Minor capital and non-capital acquisitions (e.g., software); and
• Administration (to a maximum of five per cent of eligible and supported costs).

V. Ineligible Costs

Costs that are deemed unreasonable, not incremental and/or not directly related to the eligible project activities will be ineligible. Costs incurred prior to the date of approval of a Prosperity Initiative proposal will not normally be supported.

Food and accommodation costs will not be supported.

FedDev Ontario support is not intended to fund core operational costs or to replace available commercial financing. Any portion of expenditures that could be financed by cash equity, commercial financing and/or capital markets will not normally be supported. The purchase of 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.

Funding

For-profit enterprises will be eligible for repayable contributions of up to 50 per cent of direct eligible capital project costs and up to 75 per cent of direct eligible non-capital project costs to a maximum of $20 million.

Not-for-profit corporations will be eligible for non-repayable contributions toward direct eligible project costs to a maximum of $20 million. Normally, applicants will be expected to contribute a minimum of 10 per cent of the eligible costs of the project.

Application Process

To apply to the Prosperity Initiative, applicants must first submit a Statement of Intent. Upon written confirmation from FedDev Ontario that the application may proceed to Phase 2, applicants will be asked to submit a full proposal.

Phase 1 — Statement of Intent:

1. Complete a Statement of Intent application form;
2. Complete and submit an Applicant Declaration on Lobbying;
3. Attach a brief summary of how the proposed project will result in each of the following outcomes:
   • The development and expansion of a strategic economic cluster that will build on the assets and strengths of southern Ontario and increase its competitiveness within the global economy;
   • The creation and strengthening of market-oriented collaborative initiatives or strategic alliances;
   • Improved competitiveness and sustainability of southern Ontario regions; and
   • Creation of long-term employment and high-value jobs.
4. Attach a copy of the applicant organization's most recent year-end financial statements.

Statements of Intent for the Prosperity Initiative can be submitted online or by mail to FedDev Ontario's Kitchener office. Applications will be accepted on a continuous basis.

Phase 2 — Full Application:

Upon written confirmation from FedDev Ontario that the application may proceed to Phase 2, applicants must submit a detailed business plan. Information required in the business plan and submission details will be provided to applicants who receive written confirmation to proceed to a full application.

Note

• A complete Statement of Intent application package must be submitted in order for FedDev Ontario to determine your proposal's eligibility.
• Before completing your application, carefully review these guidelines to ensure your organization or company is an eligible recipient and your proposal activities and objectives fit within the Prosperity Initiative objectives and criteria for Building a Competitive Advantage.
• Written confirmation that an application may proceed to Phase 2 of the application process should not be interpreted as FedDev Ontario approval of the proposed project.

Application Review

Applications will be evaluated on their ability to achieve Prosperity Initiative objectives and to meet the following criteria:

• Applicant can demonstrate it has an established track record in the delivery of projects relating to industry enhancements, economic diversification, or large-scale collaborative project delivery;
• Applicant has the management, technical, program development and other expertise and resources required to complete the proposed project;
• Applicants applying on behalf of a collaboration represent the key project stakeholders;
• Applicants have established a clearly articulated project governance structure and decision-making process;
• Project addresses a need identified by end users and will not duplicate existing efforts or projects;
• Project will achieve outcomes such as:
  • Increased capacity to access new or expanding markets through development of critical infrastructure;
  • Increased diversification of southern Ontario regions towards new, sustainable economic activity;
  • The creation and strengthening of market-oriented collaborative initiatives or strategic alliances;
  • Creation of long-term employment and high-value jobs;
  • Improved competitiveness and economic growth in southern Ontario;
• Accountability mechanisms are in place to ensure due diligence in administering public funds and ability to report on performance measures; and
• Identification of a person and position responsible for project delivery.

All project activities must be completed by March 31, 2014.

Multiple Applications for Government Funding

FedDev Ontario will take other government funding into consideration when determining eligibility. Contributions under the Prosperity Initiative will be conditional upon total government assistance (as defined in the Treasury Board Directive on Transfer Payments) being limited to:

• Up to 75 per cent of eligible non-capital costs and 50 per cent of eligible capital costs to for-profit entities; and
• Up to 100 per cent of eligible costs for not-for-profit entities.

In no instance will the total government assistance be allowed to exceed the eligible costs. Recipients must confirm with their investors whether any of their funding comes from federal or provincial sources.

All recipients of financial assistance are required to inform FedDev Ontario before the start and at the end of a project of any other government assistance (federal, provincial/territorial or municipal) received or requested for the eligible costs of the project that are described in the contribution agreement. The contribution agreement also contains a "continuing disclosure" obligation concerning other government assistance and provides for the right of FedDev Ontario to reduce the contribution to the extent of any such assistance or require the recipient to repay the excess to the Crown.

FedDev Ontario reserves the right to modify these guidelines at any time without notice and may waive certain requirements on an exceptional basis.

Reporting Requirements

Recipients must submit to FedDev Ontario reports of project expenditures and completion of deliverables, including achievement of performance indicators identified in contribution agreements. Examples of performance indicators may include projected increase in sales as a result of the project, total funding leverage, and person months of employment created/maintained by project.

Contact Us

For more information on FedDev Ontario's Prosperity Initiative, please email or call 1-866-593-5505.