Federal Economic Development Agency for Southern Ontario – Application Guide

Overview

This Application Guide has been developed to provide instructions to applicants on how to complete FedDev Ontario's Application for Funding for the following three streams of programming:

  • Stream 1: Business Scale-up and Productivity
  • Stream 2: Regional Innovation Ecosystem
  • Stream 3: Community Economic Development and Diversification

In addition to this Guide, please review the applicable Stream Guidelines for information on strategic objectives, eligibility criteria, funding levels, information requirements, and/or application review process.

The purpose of the Application for Funding is to:

1) provide a detailed description of the proposed project, what the business or organization hopes to achieve by undertaking the project, and how the project will benefit southern Ontario; and

2) demonstrate that the applicant has the management, technical and financial capacity to complete the project.

This Guide is organized according to the sections of the Application for Funding. Fields in the Application for Funding that are self-explanatory are not referenced in this Guide. When completing the Application for Funding, applicants are expected to complete the fields in each section or indicate if a field is not applicable.

Please limit individual answers to the space provided in the Application for Funding. The use of point form (or bulleted lists) is acceptable, provided that the information is clear. Supplementary materials other than those identified in the Application for Funding will not be reviewed as part of the submission.

Use the best available information at the time of completion of the Application for Funding. A FedDev Ontario representative may follow up with applicants to obtain clarification or further information on any of the content provided in the Application for Funding.

By signing and submitting the Application for Funding, the applicant acknowledges that the information contained therein is subject the Access to Information Act and the Privacy Act.

Applicants are encouraged to contact FedDev Ontario if they have any questions regarding the Application for Funding. For more information call 1-866-593-5505.

Completing the Application for Funding

This section provides information on how to complete the various sections of the Application for Funding.

Applicant information

  • Legal name of Applicant: The name of the incorporated business or organization.
  • Operating name: The name under which business is publicly conducted. e.g., 123456 Ontario Ltd operating as XYZ Technologies.
  • Is the Applicant a subsidiary? If yes, identify the parent entity and its location: A subsidiary is a company which has a controlling interest in its shares owned by another company. Provide the legal name of the parent entity and head office location.
  • Business Number: The business number is a unique 9-digit number assigned by the Canada Revenue Agency.
  • Nature of your organization? Please select what industry most accurately reflects the organization, not the project activities.
  • Applicant Location: The complete address where the headquarters of the company is located.
  • Date of Incorporation (YYYY-MM-DD): The date stated on the company's Articles of Incorporation.
  • If applicable, number of years the organization was in operation before incorporation: This is to indicate when business operations first started, if they pre-date incorporation. These are the years in which business revenue was reported in a Canada Revenue Agency tax return.
  • Is the Applicant a public or private corporation? A public corporation is one which has its shares traded on a public stock exchange. For not-for-profit organizations and all other businesses, indicate "private corporation."
  • Number of full-time employees in Canada: A full-time employee usually works between 35-40 hours or more in a regular work week.
  • Number of part-time employees in Canada: A part-time employee usually works less than 35 hours in a regular work week.
  • Number of employees outside of Canada: Indicate the total number of employees (full-time and part-time) working for the business or organization outside of Canada.
  • Is the applicant, its directors or officers a party to legal proceedings that may adversely affect the business? Indicate if there are any current legal actions which could, directly or indirectly, affect the company.
  • Will the project occur in an Official Language Minority Community? Official Language Minority Communities generally consist of Francophone minority communities in southern Ontario.

Authorized Project Contact

  • Provide contact information for the person who is authorized to represent the business or organization, and who will be the main point of contact regarding the project. Note this cannot be a consultant, as FedDev Ontario will only communicate with the applicant.
  • If the contact person is not a signing officer of the business or organization, confirmation of that person's right to represent the company may be required.

Project Information

  • Estimated Start Date of Project: This date is the first day you anticipate incurring expenses for your project, typically the date of a submitted application.
  • Estimated End Date of Project: This date is the last day you anticipate incurring expenses for your project. This date cannot be after the program end date of December 31, 2023.
  • Innovation Stream: Select the Stream that best describes your project. The Stream selection will be reviewed by, and may be modified by FedDev Ontario officials.
    • Stream 1: Business Scale-up and Productivity aims to accelerate the growth of firms and assist with the adoption and adaptation of new, innovative technologies that support scale-up, productivity, development of and entry into new markets to help companies become globally competitive.
    • Stream 2: Regional Innovation Ecosystem aims to create, grow and develop strong and inclusive regional networks that support business growth and innovation, as well as the entrepreneurial environment necessary to foster more innovative regional economies and increase the competitiveness of small- and medium-sized enterprises (SMEs).
    • Stream 3: Community Economic Development and Diversification aims to develop, diversify and transform local economies by promoting small business development, community innovation and strategic collaborations.
  • Provide a short project description (2-3 sentences) summarizing the project and outlining the project's expected results: Briefly describe the project's main activities and the anticipated outcome(s) of the project.
  • Outline the objectives and detailed expected result(s) anticipated from the project: The objectives are the organization's reason(s) for undertaking the project and the outcomes are the anticipated results from the project. These should be described from the organization's perspective, and would be applicable whether funding is obtained or not.
  • List any key project partners and their role and contribution to the project: Key project partners may include for-profit and not-for-profit organizations, post-secondary institutions, community stakeholders and other government departments (federal, provincial or municipal) invested in the completion and/or the success of the project through the provision of either financial and/or non-financial contributions. Please describe the financial and/or non-financial contributions made by each identified key project partner.
  • If project partners are providing financial or in-kind contributions, please complete the following table: List any identified project partners in the table provided. Add the value of their contribution(s) in dollars.
    • Cash contribution: Cash asset transactions that are provided by interested parties in support of a federally approved transfer payment project or initiative.
    • In-kind contribution: In-kind contributions involve non-cash asset transactions (e.g., securities, equipment, use of facilities, labour, goods, etc.) that are provided by interested parties in support of a federally approved transfer payment project or initiative. Please note that in-kind contributions cannot be considered as part of the eligible investment in Stream 1 or for projects led by incorporated businesses in Stream 3.  For greater clarity on all other project proposals, Applicants are encouraged to contact FedDev Ontario to inquire whether or not in-kind contributions can be considered as part of the eligible investment.
  • Describe the need for FedDev Ontario funding and the impact on the project if funding is not received: Please explain whether the project will proceed without funding, whether the scope of the project will be smaller, and/or whether the timelines will be affected if FedDev Ontario funding is not received.
  • Business Applicants: If you are not a business applicant, please indicate "not applicable."  Business applicants must complete this question. Indicate the impact your project will have on your business' competitive position and market share. If applicable, provide estimates of market share increases.
  • Not-for-profit Applicants: If you are not a not-for-profit applicant, please indicate "not applicable". Not-for-profit applicants must complete this question. Provide context on similar or comparable projects already being undertaken globally or in Canada, and describe how this project is different or complements the efforts of other players in the ecosystem and positions Canada and southern Ontario to seize new market opportunities.
  • Describe the project's key risks and mitigation strategies: Examples of risk may include: financial, trade, regulatory, implementation, and/or any risks that may impact a successful project outcome.
  • Are any of the activities of the proposed project expected to occur on federal lands?  Federal lands are defined in the Canadian Environmental Assessment Act, 2012:
    • Lands that belong to Her Majesty the Queen in Right of Canada, or that Her Majesty the Queen in Right of Canada has the power to dispose of, and all waters on and airspace above those lands, other than lands under the administration and control of the Commissioner of Yukon, the Northwest Territories, or Nunavut;
    • The following lands and areas:
      • The internal waters of Canada, in any area of the sea not within a province;
      • The territorial sea of Canada, in any area of the sea not within a province;
      • The exclusive economic zone of Canada, and
      • The continental shelf of Canada.
    • Reserves, surrendered lands and any other lands that are set apart for the use and benefit of a band and that are subject to the Indian Act, and all waters on and airspace above those reserves or lands.

Project Outcomes

  • Describe how this project aligns with FedDev Ontario's priorities: All applicants must demonstrate how the proposed project aligns with the objectives of the Government of Canada's Innovation and Skills Plan and FedDev Ontario priorities to increase competitiveness, support leading-edge technological advancements, and diversify communities in southern Ontario.
    • Special consideration may be given to projects that improve the region's ability to overcome low investment in new technologies and machinery; increase the number of scale-up firms; improve productivity and competitiveness of firms; increase commercialization outcomes; and lead to longer-term, transformative initiatives that advance innovation in the ecosystem in areas where southern Ontario can 'double down' on its innovation advantage.
    In completing this section, applicants should describe:
    • Clusters or sector alignment - How the project is aligned with an established or emerging economic sector or cluster in southern Ontario, including a description of the relative size and competitive advantages of the identified sector or cluster, and how the project will impact this sector or cluster on regional, national and/or global level.
    • Regional competitive advantage - How the project will generate real economic impacts, investments in innovation, commercial results, and global leadership for southern Ontario and Canada, including but not limited to: market disruption due to first-in-Canada creation or adoption of leading-edge technology; job creation and/or retention; and results of commercialization (including impact in sales by supporting a first sale or growth through market diversification), creation of intellectual property, environmental improvements; increased participation of underrepresented groups in the workforce, etc.).
    • Gaps and opportunities – how the project addresses a significant gap and would strengthen southern Ontario's competiveness, and how the proposed economic and/or innovation impacts address the objectives of the stream.

  • Please refer to the Guidelines for more information on the key objectives and eligible activities.

Economic Benefits

All values provided under this section must be measurable and verifiable. If the applicant selects "No" for any of the options, then it is not necessary to provide a value in the "Amount" column.

All amounts reported in this section must be measured from the estimated Start Date of the Project to the End Date of the Project. Any benefits that fall out of this timeframe that the applicant wishes to highlight should be included in the prior question relating to how the project aligns with FedDev Ontario's priorities.

Increased domestic sales: Indicate the total value of increased sales within Canada for your organization and/or collaborators. These sales must be a direct result of the project activities and cannot include increased sales from other activities undertaken by your organization. Estimate the cumulative value of the increase in sales from the estimated start date of the project to the end date of the project. Do not include sales that will be realized beyond project completion.

Increased foreign sales: Indicate the total value of increased sales outside of Canada for your organization and/or collaborators. These sales must be a direct result of the project activities and cannot include increased sales from other activities undertaken by your organization. Estimate the cumulative value of the increase in sales from the start date of the project to the end date of the project. Do not include sales that will be realized beyond project completion.

Increased clean tech sales: Clean technology refers to any process, products or service that reduces environmental impacts. Indicate the total value of clean technology sales as a direct result of your project. These sales can either be in Canada or outside of Canada.  Clean technology can be considered to consist of any product, process, or service designed with the primary purpose of contributing to remediating or preventing any type of environmental damage.

Foreign investment in Canada: Indicate if the project will result in new foreign direct investment in Canada. This investment must be a direct result of the project activities and cannot include investments that would have occurred if the project did not proceed. Estimate the cumulative value of the investment from the estimated start date of the project to the end date of the project. Do not include investments that will be made beyond project completion.

Number of businesses supported: Indicate the number of businesses forecasted to be supported as a direct result of this project. In order to be deemed a supported business, the business must receive a direct benefit from the project (e.g., direct funding from FedDev Ontario or funding or services provided directly from the applicant to an ultimate recipient). If the applicant is the only business or organization supported, then indicate "1" for the number for businesses/organizations supported.

Number of collaborations/partnerships established:  Indicate the forecasted number of formal collaborations or partnerships that will established during the project. A formal collaboration must include a signed agreement outlining each party's role and contribution toward the project. A collaboration or partnership must be specific to the project activities and contribute to the overall objectives of the project.

Number of collaborations/partnerships established with a higher education institution: Indicate the forecasted number of formal collaborations or partnerships with higher education institutions that will be established during the project. A formal collaboration must include a signed agreement between project partners outlining each party's role and contribution toward the project. A collaboration or partnership must be specific to the project activities and contribute to the overall objectives of the project.

New intellectual property (IP) created or licensed: Indicate the number of new intellectual property expected to be created or licensed as a direct result of this project. This can include IP created or licensed by either the applicant or a project partner.

Number of new products or services commercialized: Indicate the number of new products or services that will be commercialized as a direct result of this project. This can include products or services commercialized by either the applicant or a project partner.

Funding leveraged: Funding leveraged is calculated by subtracting the FedDev Ontario contribution from the total eligible and supported project cost. This can include funding provided by the applicant, project partners or other funding organizations.

  • If applicable, please indicate if your business or organization is led or majority owned by one or more of the under-represented groups listed on the Application for Funding.

    Led or majority owned organizations constitutes an individual and/or a group from one of the identified under-represented groups listed either:
    1. Owning 50 percent of more of the organization
      or
    2. Having long-term control and management of the business, contribution of capital and an active role in both strategic and day to day decision making
  • If applicable, please indicate if your project will influence any of the federal inclusive growth priorities listed on the Application for Funding.

Inclusive Growth is defined as a multidimensional approach to growth that includes economic and non-economic dimensions. Inclusive growth includes initiatives that ensure more equal access to these dimensions for targeted sectors of society. These initiatives lead to improvement in quality of life and chances of success in the economy for underrepresented groups.

Based on the above definition of Inclusive Growth, do project investments capitalize on the untapped entrepreneurial talent within underrepresented groups; including, but not limited to: women, Indigenous peoples, members of Official Language Minority Communities (OLMCs), youth, persons with disabilities, newcomers to Canada, and visible minorities, with the aim to reduce barriers and encourage their full participation in economic activity, yielding benefits for all?

Jobs to be created and maintained: In the chart provided, indicate the total number of full-time equivalent (FTE) jobs to be created and maintained in the time frames listed. Calculate any FTE jobs as the employment of one person full-time, or more than one person part-time, such that the total working time as equivalent of one person working full-time. Generally, full-time positions will involve between 35-40 hours in a regular work week. Do not include FTEs employed by suppliers or contracted services. Jobs must be a direct result of project activities.

Project Budget

  • By completing this section, you will be providing FedDev Ontario with the key project financing information it needs to assess whether resources requested are appropriate for further review. It is in this section where you will identify the cost of the project, broken down by year, cost category and funding source(s). It is also where you will identify the amount of assistance you are requesting from FedDev Ontario (based on eligible support thresholds outlined in the "Funding" section of the Guidelines for each Stream).
  • This section should only contain information pertinent to the project as proposed in the rest of the Application for Funding. Please refer to the Guidelines for more information on eligible funding.

Corporate Information

  • Please keep your responses brief. For management biographies, please limit 2-3 lines per person and highlight the expertise required to manage and/or complete the project. For large companies, not-for-profit organizations or communities where a description of the management team and/or technical team is more appropriate, please provide information for the key team leaders. For board of directors, please list each member's name, job title and organization.

Financial Information

  • This section will allow FedDev Ontario to assess your organization's capacity to undertake the proposed project.
  • Describe your business or organization's current financial performance (i.e. cost structure, revenue streams): Provide a description of your organization's main revenue sources. Please explain how your organization generates revenue and any notable financial pressures.
  • Describe how your business or organization will be sustained beyond the project completion: Provide an explanation for how your organization will be financially sustained beyond the project completion. FedDev Ontario funding is normally not intended to be used for ongoing operational costs.

 Annex – Technology Readiness Levels Scale Descriptions

The Guidelines for Stream 1: Business Scale-up and Productivity make reference to Technology Readiness Levels.  The Technology Readiness Level (TRL) is a scale of 1 to 9 which reflects different stages of development of a given technology. For greater clarification, please refer to the following TRL descriptions.

Technology Readiness Levels Scale Descriptions
Technology Readiness Level (TRL) Description
TRL 1—Basic principles observed and reported Lowest level of technology readiness. Scientific research begins to be translated into applied research and development (R&D). Examples might include paper studies of a technology's basic properties.
TRL 2—Technology concept and/or application formulated Invention begins. Once basic principles are observed, practical applications can be invented. Applications are speculative, and there may be no proof or detailed analysis to support the assumptions.
TRL 3—Analytical and experimental critical function and/or characteristic proof of concept Active R&D is initiated. This includes analytical studies and laboratory studies to physically validate the analytical predictions of separate elements of the technology.
TRL 4—Product and/or process validation in laboratory environment Basic technological products and/or processes are tested to establish that they will work.
TRL 5—Product and/or process validation in relevant environment Reliability of product and/or process innovation increases significantly. The basic products and/or processes are integrated so they can be tested in a simulated environment.
TRL 6—Product and/or process prototype demonstration in a relevant environment Prototypes are tested in a relevant environment. Represents a major step up in a technology's demonstrated readiness. Examples include testing a prototype in a simulated operational environment.
TRL 7—Product and/or process prototype demonstration in an operational environment Prototype near or at planned operational system and requires demonstration of an actual prototype in an operational environment (e.g. in a vehicle).
TRL 8—Actual product and/or process completed and qualified through test and demonstration Innovation has been proven to work in its final form and under expected conditions. In almost all cases, this TRL represents the end of true system development.
TRL 9—Actual product and/or process proven successful Actual application of the product and/or process innovation in its final form or function.
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