Qualify for Investing in Business Growth & Productivity: Ontario Business Loan
Please Note: IBGP is closed. Please consider the Business Scale-up and Productivity program for similar support.
The Investing in Business Growth & Productivity Ontario government funding program is one of the programs that make up the Southern Ontario Prosperity Initiatives (SOPI), administered by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario). The SOPI program, founded on a $530 million contribution from the Government of Canada, supports the growth and innovation of Ontario small and mid-sized enterprises (SMEs). Businesses eligible to receive IBGP Ontario government loans can receive up to 25% of project expenses (to a maximum $20 million) for activities which create a sustained improvement to a business’ productivity, capacity, and provide access to new markets.
Companies Eligible to Receive Investing in Business Growth & Productivity Government Loans Ontario
SMEs which would like to obtain Ontario government funding through IBGP must observe the following eligibility requirements:
- Incorporated provincially or federally;
- Have operations based in southern Ontario;
- Profitable and have two years of financial records to verify business sustainability;
- Have a cash contribution of 75% which can finance the remaining portion of project costs;
- Can obtain formalized project cost estimates;
- Have between 15 and 1000 full-time employees on payroll; and
- Have plans to grow into new markets and create long-term jobs as result of increased capacity.
IBGP Ontario Small Business Loans Project Eligibility
FedDev Ontario’s Investing in Business Growth & Productivity will provide repayable funding for projects which increase capacity, improve productivity, and enable market expansion through:
- Adoption of new technologies, processes, and related skills development;
- Facility expansion or upgrades;
- Market expansion and development; and
- Economic diversification and business development.
Projects funded through Investing in Business Growth & Productivity must not exceed a three-year period and must be completed prior to December 31, 2017 to be eligible, since FedDev Ontario requires 1 year to account for possible delays in project administration. Adherence to these timelines is essential for program eligibility.
Expenses Eligible for Investing in Business Growth & Productivity Small Business Loans Ontario
SMEs may receive up to 25% of project expenses including:
- Internal labour expenses (payroll for employees directly related to project completion);
- Consulting and contractor fees;
- Capital and equipment adoption;
- Project-related software; and
- Materials and other non-capital investments directly linked to the project.
Learn More about Investing in Business Growth & Productivity Ontario Government Loans
To continue learning and get started with Investing in Business Growth & Productivity small business loans, choose one of the options below:
Get Started Program Overview FAQ
Resources for Business Expansion and Productivity Improvements
Small businesses which are seeking to grow their company have a wide range of Canadian government funding programs to assist their efforts. However, finding the optimal combination of government funding programs to extend business cash flow can be a difficult and time consuming process. To ensure your business is maximizing the potential of Canadian government funding, contact Mentor Works and a Government Funding Expert will provide a detailed explanation of available options. Business owners can also view Mentor Works’ infographic on Comparing FedDev Ontario Government Funding, which compares IBGP and a closely related program, Investing in Business Innovation (IBI). To stay up-to-date on government grants and loans, register for Mentor Works’ weekly e-newsletter which provides business leaders with top funding news, market trends, and business events.