Briefing binder for FedDev Ontario 2019

Regional Development Agencies (RDAs) are thefederal organizations dedicated to the economic development of the regions they serve…

The RDA model was started more than 50 years ago and evolved over time

The first established agencies were in Atlantic Canada and Western Canada (B.C., Alberta, Saskatchewan, Manitoba) in the late 1980s, followed by Quebec in 2005, and more recently in southern Ontario and the North in 2009

Budget 2021 proposed that Western Economic Diversification be split into two standalone RDAs – the Pacific Economic Development Agency of Canada and the Prairies Economic Development Canada, which was announced on August 5, 2021

Budget 2021 also proposed making the Federal Economic Development Initiative for Northern Ontario (previously a branch within ISED), a standalone Agency – the Federal Economic Development Agency for Northern Ontario, which was announced on August 10, 2021

Since 2015, all RDAs have been within the Innovation, Science and Economic Development Canada (ISED) portfolio

Mission

Promote the long-term economic development of the regions of Canada, by supporting the enabling conditions for generating economic activity and the growth of SMEs

Vision

Promote equality of opportunity across Canada by optimizing the ability of the regions to prosper in the new economy

…and they have a growing presence and role in each of Canada’s diverse regions

Traditionally, the role of RDAs was to support depressed areas facing economic challenges

RDAs are now an essential part of the Government’s plan to create jobs and economic growth/p>

  • They provide a strong federal presence across Canada
  • They are convenors that bring together key stakeholders to build collaborations and explore solutions to grow the regional economies
  • They bring regional perspectives to national policies, and develop and implement placed-based policies, programs and initiatives
  • They deliver on government priorities with a focus on local socio- economic realities and business needs in in their regions
Map of Regional Development Agencies in Canada
Text version

Province/Territory            Regional development agency support
Alberta                                Prairies Economic Development Canada (PrairiesCan)
British Columbia               Pacific Economic Development Canada (PacifiCan)
Manitoba                           Prairies Economic Development Canada (PrairiesCan)
New Brunswick                 Atlantic Canada Opportunities Agency (ACOA)
Newfoundland and Labrador       Atlantic Canada Opportunities Agency (ACOA)
Northwest Territories     Canadian Northern Economic Development Agency (CanNor)
Nova Scotia                       Atlantic Canada Opportunities Agency (ACOA)
Nunavut                              Canadian Northern Economic Development Agency (CanNor)
Ontario Northern Ontario: Federal Economic Development Agency for Northern Ontario (FedNor)
Southern Ontario: Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
Prince Edward Island      Atlantic Canada Opportunities Agency (ACOA)
Quebec Canada Economic Development for Quebec Regions (CED)
Saskatchewan    Prairies Economic Development Canada (PrairiesCan)
Yukon    Canadian Northern Economic Development Agency (CanNor)

RDAs pursue similar objectives and results, while adapting their actions to the needs and realities of their respective regions

As outlined in the Departmental Plan, FedDev Ontario works to strengthen southern Ontario’s capacity for innovation, economic development and growth…

Departmental Results
  1. Communities in southern Ontario are economically diversified
  2. Businesses in southern Ontario invest in the development and commercialization of innovative technologies
  3. Businesses in southern Ontario are innovative and growing
FedDev Ontario - Catchment Area and Census Divisions
Text version

A map of southern Ontario that shows FedDev Ontario's scope of operations, from Cornwall in the east to Owen Sound in the west, and from Pembroke in the north to Windsor in the south.

The following 37 Statistics Canada census divisions are identified in the map: Brant; Bruce; Chatham–Kent; Dufferin; Durham; Elgin; Essex; Frontenac; Grey; Haldimand–Norfolk; Haliburton; Halton; Hamilton; Hastings; Huron; Kawartha Lakes; Lambton; Lanark; Leeds and Grenville; Lennox and Addington; Middlesex; Niagara; Northumberland; Ottawa; Oxford; Peel; Perth; Peterborough; Prescott and Russell; Prince Edward and Lambton; Renfrew; Simcoe; Stormont, Dundas and Glengarry; Toronto; Waterloo; Wellington; and York.

…and it has been a strong federal presence in southern Ontario for more than 12 years…

FedDev Ontario was created following the economic downturn in 2009 with an original five year mandate to support economic growth in southern Ontario

  1. FedDev Ontario has been a permanent Agency since 2019 (announced in Budget 2019)

The Agency normally has ~260 (March 31, 2020) employees based in its four offices across southern Ontario…

  1. Waterloo (Headquarters)
  2. Toronto
  3. Ottawa
  4. Peterborough

….however, with temporary COVID relief and recovery measures currently being delivered, the number of employees in the Agency is at 297 as of August 2021

Normally the Agency’s annual, ongoing budget is ~$196 million (2021-22)…

  1. Including ~$166 million in annual, ongoing Grants and Contributions funding, and ~$30 million for operating and maintenance

….however, the Agency’s budget has temporarily more than tripled as it continues delivering COVID-19 relief and recovery measures in the region – reaching close to $634 million in 2021-21, before decreasing again in future years

…under the leadership of its President and Key Agency Executives

President

As the Deputy Head of the Agency, the President is responsible for its overall strategic direction to deliver on theMinister’s mandate, supported by the following leadership team:

Office of the President Programs Policy and Partnerships Corporate Human Resources Communications
Brigitte Charron Linda Cousineau Chris Padfield Lisa St-Amour Raquel Fragoso Kerri Dunning
A/Chief of Staff
Laurie-Ann Fortier
Corporate Secretary
Vice-President
Business, Innovation and Community Development
Vice-President
Policy, Partnerships and Communications
Chief Financial Officer Director General, Human
Resources
Director*
Communications
Manages coordination between Minister’s office and the Agency.

Responsible for managing the Agency’s program delivery and making project investment recommendations to the Minister.

Responsible for strategic issues management, program and policy development, results reporting, stakeholder engagement and communication. As well as some targeted program delivery. Manages the Agency’s Budget and is responsible for corporate functions such as technology assets, security, and information management. Responsible for the strategic and corporate leadership in the delivery of HR policies, programs and services, including talent attraction and acquisition, classification and organizational design, employment equity and diversity, and labour Responsible for the management and planning of Ministerial events and announcements.
*Reports to the VP of Policy, Partnerships and Communications.
Email:
Brigitte.Charron@feddevontario.gc.ca
Tel: 613-222-7541
Email:
Laurie-Ann.Fortier@feddevontario.gc.ca
Tel: 343-572-2114
Email:
Linda.Cousineau@feddevontario.gc.ca
Tel : 519-590-9255
Email:
Chris.Padfield@feddevontario.gc.ca
Tel: 613-355-5588
Email:
Lisa.St-Amour2@feddevontario.gc.ca
Tel: 613-790-6493
Email:
Raquel.Fragoso@feddevontario.gc.ca
Tel: 613-799-5824
Email:
Kerri.Dunning@feddevontario.gc.ca
Tel: 416-456-9845

FedDev Ontario plays key roles for the federal government in southern Ontario…

Co-investor

Making strategic investments to support the government’s economic growth priorities through regionally tailored programs that stimulate economic growth, create jobs and drive innovation in Canada’s most populous region

Convenor

Bringing together key stakeholders to build collaborations and explore solutions to grow the region’s economy

Champion

Promoting southern Ontario’s assets to raise its profile nationally, and advocating for the region’s interests within government to fulfill priorities in the region

Pathfinder

Helping businesses and organizations find the best support for their needs by working closely with partners across the federal government, and with key Province of Ontario ministries

…including making strategic investments through three flexible ongoing regional streams, …

With an annual ongoing program grants & contributions (Gs&Cs) budget of around $154 million*

*In 2021-22 and 2022-23, FedDev Ontario is delivering an additional $21.9 million / year over 5 years announced in Budget 2018

(i) Business Scale-up and Productivity (ii) Regional Innovation Ecosystem (iii) Community Economic Development and Diversification
Provides interest-free loans to help companies adopt and develop new, innovative technologies that support growth, productivity, and the development of and entry into new markets Provides non-repayable funding to non-profit organizations to help develop strong and inclusive regional projects that support business growth and innovation Provides non-repayable funding to non-profit organizations and interest-free loans to companies for projects that help small and rural communities fully-participate in economic growth opportunities
Pivotal Project – APAG Elektronic Pivotal Project – Innovate Cities Pivotal Project – Aboriginal Impact Capital
With $4 million in support from FedDev Ontario, the Switzerland-based producer of electronics and ambient lighting components for automotive customers established a 32,000 square-foot state-of-the-art North American Headquarters in Windsor and will create over 100 jobs With more than $11 million in support from FedDev Ontario, Innovate Cities, a not-for- profit network of innovators, is developing an urban innovation cluster, focused on the creation of safer, more sustainable and resilient communities With more than $10 million in support from FedDev Ontario, the Two Rivers Community Futures Development Corporation established Aboriginal Impact Capital to mange an Indigenous Capital Pool that provides Indigenous mid-market companies opportunities and tools to participate in the southern Ontario economy

… regionally delivered ongoing national programs, …

Along with the other RDAs, FedDev Ontario also delivers two ongoing national programs in southern Ontario with annual Gs&Cs budgets of around $12 million…

Community Futures Program Economic Development Initiative
Supports the operations of southern Ontario’s 37 Community Futures Development Corporations (CFDCs), who provide business advice and administer loan pools, to help rural communities develop and implement strategies for a changing economy and support the growth of rural businesses. Supports Francophone and bilingual organizations that provide business and economic development programs or services in French to Francophone areas to facilitate sustainable and inclusive growth
Pivotal Project – Renfrew CFDC Pivotal Project – La Cite Collegiale
With a loan from the Renfrew CFDC, Bishop Water Technologies positioned itself with the needed resources to facilitate the company’s growth and market expansion, tap into markets across Canada and in the eastern United States, and drive innovation in rural southern Ontario. With a FedDev Ontario EDI contribution of $1.35 million to La Cite Collegiale is supporting La Factorie, an innovation hub in Ottawa offering business services, including coaching services to 350 francophone entrepreneurs in sectors such as bio-innovation, smart prototyping and agri-food, to accelerate the commercialization of innovative products and services.

…the Agency also delivers targeted, time limited programs that have responded to government priorities and the broader economic environment

...targeted, temporary programs providing relief during the COVID-19 pandemic, …

The Agency swiftly responded to the COVID-19 Pandemic:

The RDAs mobilized quickly to deliver the $2B Regional Relief and Recovery Fund (RRRF) – a vital tool for businesses and a key backstop to other federal relief measures

  1. FedDev Ontario was allocated more than $536.4 million to provide support to businesses in southern Ontario since May 2020 – more than twice the Agency’s typical annual funding level
  2. The Agency’s RRRF funding directly helped SMEs in southern Ontario weather the worst of the pandemic
  3. Funding was also provided to NFP organizations (e.g., Tourism Industry Association of Ontario, Digital Main Street) to support additional SMEs and other organizations through the pandemic
  4. In addition, the region’s Community Futures Development Corporations provided RRRF-supported loans to support rural SMEs throughout southern Ontario

Pivotal Project – Digital Main Street

$50-million investment through the Regional Relief and Recovery Fund, to support key partners across Ontario use their expertise to help main street businesses and SMEs transform their operations so that they can compete now and prosper in the post-COVID-19 economy.

Over 90% of the Agency’s client firms in the repayment period of their loans took advantage of the flexibility offered, representing $39.9 million in cash flow relief

FedDev Ontario also:

  • Provided support and new flexibilities to existing client businesses, such as repayment deferrals totalling, advance project payments and support for PPE, to help support their operations through the worst of the pandemic;
  • Approved projects that directly support the production of PPE to help local manufacturers quickly pivot and retool their production lines to respond to Canada's needs during this health crisis; and
  • Is delivering the Regional Air Transportation Initiative ($24.2M for southern Ontario) to help businesses and organizations in regional air transportation ecosystems remain operational through the pandemic and continue to support economic growth

…targeted, temporary assistance to help drive economic recovery from the COVID-19 pandemic….

Budget 2021 identified RDAs to deliver more than $2 billion in funding to support regional economic recovery across Canada through nationally consistent initiatives, including more than $634 million in southern Ontario

All initiatives were launched in June and July 2021
Jobs and Growth Fund $700M/3 years
FDO: $224M
To pursue opportunities to create jobs, support inclusive and clean growth, and lift up struggling businesses and communities by investing in job creators and innovators, and those in the ecosystem that support them
Canada Community Revitalization $500M/2 years
FDO: $144.7M
To support communities, towns and cities across Canada as they invest in infrastructure that will assist with community vitality, support social and economic cohesion and help reanimate communities
Tourism Relief Fund $500M/2 years
FDO: $128.8M
To support tourism entities to strategically adapt their products and services to adjust to public health requirements, while planning for, and investing in, recovery efforts for future growth
Major Festivals and Events Support Initiative $200M/2 years
FDO: $70M
To offer financial support to Canada’s major festivals and flagship events to mitigate possible closure, offer alternate activities in light of constraints imposed by the pandemic, and position themselves for the future.
Aerospace Regional Recovery Initiative $250M/3 years
FDO: $67.5M
To support projects aimed at maintaining and enhancing innovation, productivity, and competitiveness of aerospace SMEs to ensure the sector emerges from the pandemic with the capacity to compete globally

With COVID relief and response programs, the Agency’s program Gs&Cs budget will temporarily almost triple over the next 3 years

  2021-2022 2022-2023 2023-2024
Ongoing Gs&Cs Programs
Ongoing Regional Streams
  1. Business Scale-up and Productivity (BSUP)
  2. Regional Innovation Ecosystems (RIE)
  3. Community Economic Development and Diversification (CEDD)
156,354,000 154,354,000 154,354,000
Ongoing National Programs
Community Futures Program 11,285,992 11,285,992 11,285,992
Economic Development Initiative 800,000 800,000 800,000
Total Ongoing Gs&Cs Funding 168,439,992 166,439,992 166,439,992
Temporary National Gs&Cs Programs
Budget 2018 RDA Top-up to Ongoing Regional Streams 21,932,460 21,932,460  
COVID-19 – Relief
Regional Reliefand Recovery Fund 96,500,000    
Regional Air Transportation Initiative 23,500,000    
COVID-19 – Recovery (Budget 2021)*
Aerospace Regional Recovery Initiative 12,960,000 25,920,000 25,920,000
Canada Community Revitalization Fund 70,407,627 68,501,975  
Tourism Relief Fund 48,147,586 71,608,506  
Major Festivals and Events Support Initiative 35,000,000 35,000,000  
Jobs and Growth Fund 99,008,000 86,016,000 30,016,000
Diversity and Inclusion
Black Entrepreneurship Program 7,818,668 9,121,780 9,121,780
Black Entrepreneurship Program – Top-up* (*$5,219,307 in 2024-25) 4,980,914 5,016,968 5,085,881
Women Entrepreneurship Strategy 6,266,732 6,314,425  
Total Temporary National Gs&Cs Programs 426,521,987 329,432,114 70,143,661
Total Transfer Payments 594,961,979 495,872,106 236,583,653
*Budget 2021 funding is currently pending a decision on fiscal year reprofiles, and approval from parliament in Supplementary Estimates B.

The Agency also continues to provide other ongoing services to firms and other stakeholders…

Small Business Services

Informs businesses about federal and provincial programs and services that help entrepreneurs start and grow their businesses – in 2019-20, SBS responded to 15,612 inquiries, and in 2020-21responded to approximately 20,000 inquiries, an increase of about 28%, largely attributable to pandemic-related inquiries.

Industrial and Technological Benefits

Supports the region’s aerospace and defence sectors by helping them benefit from Canadian defence and security Accelerated Growth ServicesProcurement

Helps high-growth firms grow, both domestically and globally, through coordinated and client-tailored federal support and working with partners including, the other RDAs, ISED, National Research Council (NRC), Global Affairs Canada (GAC), Export Development Canada (EDC) and Business Development Bank of Canada (BDC)

Global Skills Strategy

Supports companies and organizations to access highly qualified international talent by providing referrals to IRCC and ESDC for expedited application processing

Foreign Trade Zone (FTZ) Point Initiative

Assists organizations in establishing FTZ points in their communities helping them to market themselves as hubs for trade and investment

…continues delivering strong results for southern Ontario through its core programs…

Since November 2015, across all of its programming (excluding the RRRF, RATI and recently launched recovery programs), FedDev Ontario has committed over $1.2 billion to support over 1,050 projects with southern Ontario firms and organizations

For every $100M of FedDev Ontario’s investments through regional ongoing program streams:

  • ~ 40 projects are supported that lead to strengthening southern Ontario’s economy
  • 6,500+ jobs are created and maintained
  • $225M is leveraged in additional investment

FedDev Ontario’s pivotal projects can be found here

Recipient firms tend to outperform comparable to businesses on:

  • +14% Revenue
  • +18% Employment growth
  • +38% R&D spending
  • +4% Productivity

…through the Agency’s delivery of COVID-19 relief funding…

Regional Relief and Recovery Fund

FedDev Ontario allocated more than $530 million to help over 40,000 SMEs and organizations, and maintain an estimated 70,000+ jobs:

  • $305 million to directly help almost 1,300 SMEs maintaining over 25,000 jobs
    • 61% of approved projects (almost 800) being led by a member of an underrepresented group
  • Almost $117 million to help 34 not-for-profit organizations support more than 39,000 SMEs and organizations maintaining more than 40,000 jobs
  • Through CFDCs, funding an additional 2,000 rural SMEs maintaining over 6,000 jobs in smaller communities
    • over 45% of SMEs assisted led by women, 15% of SMEs led by youth, and 7.5% of SMEs led by a member of a visible minority group

Regional Air Transportation Initiative

FedDev Ontario also approved 10 RATI projects, investing $19.8 million

  • Helping maintain, restore or create up to 12 regional air routes
  • Supporting restoration of passenger volumes to reach a minimum of 22,250

… and near-term support for diversity and inclusion through targeted initiatives and across all programming

  • All new recovery programs emphasize inclusive growth and provide special considerations for Indigenous applicants (e.g., Indigenous set-aside under Tourism Relief Fund)
  • Projects that support inclusive growth may be prioritized through all programs, and applicants are encouraged applicants to voluntarily self-declare as underrepresented groups (including women, Indigenous peoples, members of Official Language Minority Communities, persons with disabilities, Black communities and other racialized communities, LGBTQ2 and others) to improve data quality
  • Eligible recipients are required to sign contribution agreements that incorporate diversity, equity and inclusion considerations
  • Collaborates with experts (e.g., Ryerson University’s Diversity Institute, the Federal Anti-Racism Secretariat, etc.) to seek feedback and recommendations on how best to incorporate diversity, equity and inclusion across the Agency’s activities

The Women Entrepreneurship Strategy commits to advancing gender equality and women's economic empowerment and to supporting women entrepreneurs. As part of this Strategy, the Ecosystem Fund helps to address gaps and build capacity in the entrepreneurship ecosystem for women

  • FedDev Ontario is delivering about $34 million through the Women Entrepreneurship Strategy Ecosystem Fund (over 5 years, ending March 31, 2023) – including the additional $4.7 million through the top-up to support women entrepreneurs to navigate the COVID-19 crisis

PROJECT EXAMPLE: $1.45M to the National Aboriginal Capital Corp. Association to develop capacity, tools and supports for Indigenous women to undertake entrepreneurship as well as develop a proof of concept for an Indigenous women's microfinance fund

The Black Entrepreneurship Program is a partnership between the Government of Canada, Black-led business organizations and financial institutions to help Black Canadian business owners and entrepreneurs growth their businesses and succeed. As part of this broader initiative, the Ecosystem Fund supports not-for-profit Black-led business organizations across the country in their capacity to provide support, mentorship, financial planning, and business training for Black entrepreneurs

  • FedDev Ontario is delivering $45 million of the Black Entrepreneurship Strategy Ecosystem Fund (over 4 years, ending March 31, 2025) – including $19 million in additional funds, provided in B2021, to increase support for black entrepreneurs and business owners

PROJECT EXAMPLE: $5M to the Black Business and Professional Association to nationally expand its Business Advisory Implementation Development Services (BAIDS) – will assist 325 SMEs and create 327 jobs

Near term priorities for the Agency and region…

  • Prepare for the transition to a new government
  • Continue to advance projects and build project pipelines through ongoing and new recovery programming for a new government
  • Continue managing COVID-19 relief projects
  • Renew engagement efforts as we look to establish go-forward investment priorities for the agency and future programming
  • Build on efforts to promote equity, diversity and inclusion within the Agency and through its programming.
  • Manage the safe return to the office