Advanced Manufacturing Fund Guidelines

FedDev Ontario is no longer accepting applications through the Advanced Manufacturing Fund (AMF).

These guidelines are for reference only.

Background

Manufacturing is critical to Canada's prosperity, provides high-quality, well-paying jobs, and is an important contributor to strong economic growth in Ontario. While Ontario firms have competitive advantages in some knowledge-intensive sectors, they lag competitors in innovation, Information and Communications Technology (ICT) adoption, productivity and market diversification.

To address these challenges and support the efforts of manufacturing firms in Ontario to become more competitive, the federal government is providing $200 million dollars over five years to create the Advanced Manufacturing Fund (AMF).

Advanced manufacturing includes the development and/or adoption of cutting-edge technologies that demonstrate a commitment to product, process, and technological innovation.

Objectives

AMF will promote the long-term growth, productivity, and competitiveness of Ontario's manufacturing sector by:

Eligibility

I. Eligible applicants

AMF will support investments by manufacturing firms. There are two types of eligible applicants:

Note: Please read a more detailed definition of anchor firm.

Under both streams, applicants must provide evidence of at least 50 percent support to the total project costs from industry (non-government sources).

All applicants must clearly demonstrate how their project responds to the following criteria:

II. Eligible activities

AMF supports investments that create new and innovative products or production methods, with market entry or commercialization within five years. Technologies developed and/or adopted under AMF must be new, or applied in a unique and innovative manner. Eligible activities in all projects include:

Eligible activities in projects led by not-for-profit organizations, in addition to the above, include industry-relevant, scientifically-advanced research in cutting-edge technologies with the potential to support commercial applications and a long-term competitive advantage for manufacturing in Ontario.

III. Eligible costs

Eligible costs may include:

All costs must be reasonable, necessary, and directly related to eligible activities.

IV. Ineligible and/or unsupported costs

Any costs determined not reasonable, and/or not necessary, and/or not directly related to the eligible project activities will be ineligible. Any costs that are ineligible under the Agency's terms and conditions and program policies will not be supported.

Costs incurred prior to the eligibility date as defined in the FedDev Ontario contribution agreement will not be supported. Additionally, any costs incurred after December 31, 2018, will not be supported.

Activities in support of regular maintenance, operation costs, the purchase of conventional machinery and equipment, adoption of conventional technologies, and/or the retooling or duplication or expansion of existing equipment, production lines, facilities, or acquisition of land and buildings will be ineligible.

V. Ineligible recipients/projects

Ineligible funding recipients include:

Priorities

Priority may be given to projects involving sophisticated niche sectors and/or sectors in which Ontario has a competitive advantage.

Funding

For-profit applicants

For-profit corporations will be considered for an unconditionally repayable contribution. The contributions provided will normally be between $10 million — $20 million per project for up to one-half (50 percent) of total eligible project costs. Projects seeking more than $20 million may be considered. Applicants must provide evidence of industry support for at least 50 percent of the remaining project costs.

Contributions will be unconditionally repayable. 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. Repayments will begin no later then one year following the completion of the project.

Financial assistance from government programs may have tax implications for your business. It is recommended that advice be obtained from a qualified tax professional.

Not-for-profit applicants

Not-for-profit corporations will be considered for a non-repayable contribution. The contributions provided will normally be between $10 million — $20 million per project for up to one-half (50 percent) of total eligible project costs. Applicants must provide evidence of industry support (non-government sources) for at least 50 percent of the remaining project costs.

Up to 10 percent of the contribution can be allocated to project administration costs.

Note: No transfer of funds to a for-profit project participant from a not-for-profit recipient will be permitted.

Disbursement of funding

If a project receives approval, a contribution agreement will be negotiated and executed. Funding will be disbursed based on the percentage of funding approved for eligible costs incurred.

To receive funding, approved recipients must submit claims forms that summarize eligible costs incurred and paid in a period. Generally, these periods will be of a duration of no more than once a month and no less than twice a year.

Application process

There will be two timed intake periods during which applications can be submitted. Intake 2014 will start at 12:00 a.m. on December 9, 2013 and end at 11:59 p.m. on October 1, 2014. Intake 2015 will start at 12:00 a.m. on January 1, 2015 and end at 11:59 p.m. on October 1, 2015. Applications cannot be submitted during the three month hiatus in between the two timed intakes. Applications will be assessed as they are received.

Only one project can be submitted by an applicant per intake period. Eligible applicants who are not successful during Intake 2014 are welcome to submit a revised or new proposal in Intake 2015. Applicants who successfully secure funding as part of Intake 2014 cannot submit another application during Intake 2015.

Prior to submitting an application, potential applicants are encouraged to contact the Agency to discuss their project's fit with AMF's criteria and objectives.

As part of the application process, applicants will be asked to provide the following documentation:

  1. Incorporation documents and a summary of all related and affiliated parties, governance and ownership;
  2. Evidence of unencumbered rights to use the background intellectual property required for the project;
  3. Documentary evidence of the project's cost estimates;
  4. A comprehensive proposal satisfactory to the Agency that demonstrates:
    1. How the company and project meet the eligibility criteria and objectives of the initiative;
    2. How the project is innovative;
    3. The likely market relevance of the project;
    4. The likely spillover/economic benefits of the project;
    5. The likelihood that the project will be executed successfully in a timely manner;
    6. Compliance with all relevant statutes, regulation and other funding agreements;
    7. The track record of the management team and investors;
    8. Proof of adequate funding for the duration of the project;
    9. The extent to which the project is consistent with the capacity of the organization; and
    10. Compliance with all previous agreements with Government of Canada funding agencies.

Application review

FedDev Ontario will review applications as they are received. Funding will be made available as of April 1, 2014.

All applications will be screened initially for completeness. Incomplete applications cannot be assessed and considered for funding.

All project activities must be completed by December 31, 2018.

Complete applications are those that include all prescribed documentation containing all information needed to complete the review. Information should be accurate, verifiable, relevant and consistent.

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 (applicable to all funding streams)

Recipients must submit to FedDev Ontario, reports of project expenditures and completion of deliverables, including achievement of performance indicators identified in contribution agreements.

Contact us

For more information on FedDev Ontario's Advanced Manufacturing Fund, please email us or call 1-866-593-5505.

Assessment criteria definitions

All projects must clearly demonstrate the following criteria:

1. Innovation

For the purposes of this program, innovations will be either:

Innovations result in new or significantly improved goods or production or delivery methods that are: novel; novel at the proposed scale and specifications in Canada; or, novel for a given industry or sector in Canada.

Activities that would proceed in a normal course of business development such as regular maintenance, operations, retooling or expansion of existing equipment or facilities, or the purchase of conventional machinery and equipment, and adoption of conventional technologies, are not considered innovations for the purposes of the program.

An applicant must demonstrate:

Return to the Eligible applicants section to continue reading the guidelines.

Return to the Application process section to continue reading the guidelines.

2. Market relevance

Innovation(s) are market relevant if they are expected to:

An applicant must clearly demonstrate:

An applicant must clearly describe:

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3. Spillovers/economic benefits

Spillovers are benefits generated by a project, in excess of those accruing to a participating applicant, which strengthen supply chains, sectors, and shared assets.

These can be addressed in terms of short-, medium- and long-term benefits to Canada.

An applicant must demonstrate:

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4. Anchor firm

An anchor firm is a manufacturing firm committed to maximizing the potential of the project's innovation(s) internally and throughout its supply chain and the regional economy. It should demonstrate:

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