Canadian small-and-medium sized businesses (SMEs) are vital to the success of the economy and well-being of all Canadians. In 2012, nearly 90% of the Canadian workforce was employed by SMEs, and these businesses were responsible for contributing close to 30% of Canada’s overall GDP. In Ontario, SMEs employ over 3.8 million people and are a key source of manufacturing, agriculture, and technical innovation for the country. While Ontario businesses need to keep innovating in their operations to stay competitive, nearly half don’t utilize Canadian government funding to advance their organization’s growth. More SMEs should consider using Ontario government loans as a means to expand their business to become more competitive domestically and internationally.
Two Ontario government loans, Investing in Business Innovation (IBI) and Investing in Business Growth and Productivity (IBGP), can be leveraged by southern Ontario businesses with targeted business growth projects.
Ontario Government Loans for Small Business Growth
The Federal Economic Development Agency for Southern Ontario (FedDev) is a Regional Development Agency responsible for the distribution of Canadian government funding to Ontario businesses and not-for-profit organizations. FedDev Ontario has launched a suite of Canadian government funding called the Southern Ontario Prosperity Initiatives (SOPIs), which provides a number of programs specifically designed to enhance productivity, growth, and increase innovation for small businesses within the province. Businesses in southern Ontario have two SOPI small business loans at their disposal: Investing in Business Innovation (IBI) and Investing in Business Growth and Productivity (IBGP). These FedDev Ontario repayable funding programs aim to help businesses expand the scale of their operations, but each have their own eligibility factors and funding details. This article will compare the two FedDev loans to help you determine the most appropriate program for your business.
Small Business Loans for Developing Innovation
FedDev Ontario’s Investing in Business Innovation repayable funding program is comprised of three streams including one for Early Stage Businesses. Recipients of IBI Early Stage Businesses funding may obtain up to $1 million (33% of eligible costs) in repayable funding towards their project. Late-stage development or early-stage commercialization activities with a high degree of innovation are ideal project types for southern Ontario businesses to receive funding for under this program. At least one-third (33%) of project funding must be provided through venture capitalist financing, and the remaining 33% can come from company contributions.
Ontario Government Funding for Productivity Improvements
The Investing in Business Growth and Productivity program offered through FedDev Ontario aims to help southern Ontario businesses upscale facilities, expand market reach, adopt new technologies & processes, and increase business capacity to participate in global markets. The program offers two streams, including one for for-profit organizations. Eligible businesses may receive up to $20 million (up to 25% of eligible costs) to enhance their production capabilities and expand revenue streams, creating jobs in the region.
Infographic: Compare FedDev Ontario Business Loans
View this infographic based on these two small business loans to compare your options. Using a side-by-side analysis, discover which small business loan will enable your strategic growth initiatives.
View the infographic and see for yourself how these FedDev Ontario small business loans can help your business’ cash flow planning and accelerate your growth.
Other Free Resources for Canadian Small Business
In addition to providing free monthly web content, such as our newest Comparing FedDev Ontario Business Loans infographic, Mentor Works hosts a variety of educational business funding webinars themed around Canada’s largest industries. You can also contact Mentor Works today and one of our Government Funding Experts will assist you with questions about government grants and loans. Connect with us on social media and join the #govfunding discussion through our Twitter account.