FedDev Ontario recently announced their continued support for Northumberland Community Futures Development Corporation (Northumberland CFDC). The CFDC – a not-for-profit organization that delivers financing and business strategy to entrepreneurs – will receive a $1.1M expansion to their original pilot project which supported 22 tech startups in the area. The program also created 53 new jobs for the area and generated 3 patents with an initial investment of $529,000 in Ontario government funding. The program will continue its past success of funding innovative tech startups and be re-launched under the name N1M.
Qualify for Northumberland’s N1M Ontario Government Grants
The recent $1.1 million expansion to Northumberland CFDC’s startup program is expected to support 25 new tech companies while creating 23 new jobs and maintaining another 48 positions. Qualifications for the N1M program will remain similar to the pilot program provided between 2012-2014. High-potential, early-stage tech startups who are seeking to develop and commercialize new technologies will be given priority to access these funds. Each successful applicant is eligible to receive:
- Up to $30,000 in Ontario government grant funding awarded upon the completion of project milestones;
- Funding for skills training up to $2,500 (100% of eligible costs coverage); and
- Venture catalyst support (including business mentorship, industry connections, and strategic planning).
N1M Funded by FedDev Ontario’s Investing in Business Innovation
Northumberland CFDC, a not-for-profit organization, has been enabled to distribute N1M funding by FedDev Ontario through the Investing in Business Innovation (IBI) program. Through IBI’s not-for-profit stream, organizations such as Regional Innovation Centres, incubators, accelerators, angel networks and CFDCs may receive Ontario government grants to deliver funding and services to early-stage businesses who require assistance.
Small businesses may also receive Investing in Business Innovation funding directly from FedDev Ontario. Government funding is dispersed as 0% interest repayable grants for early-stage businesses with a maximum fundable amount of $1 million (or 33% of eligible project costs). Small businesses may receive funding coverage for activities including:
- Product and process applied research;
- Technology development;
- Engineering design;
- Labour and operating expenses;
- Certification; and
- Piloting and demonstration.
Resources for Innovative Tech Startups and SMEs
Certain programs such as Investing in Business Innovation may be administered by Regional Innovation Centres (RICs), incubators, and Community Future Development Corporations (CFDCs) to distribute Canadian government funding to startups. However, many tech startups will face challenges when applying for Canadian government funding because most programs require businesses to be incorporated for two years prior to receiving government investment.
Small-and-medium-sized enterprises (SMEs) who have been incorporated for at least two years may already be eligible to receive Canadian government funding. If you’re a technology-based SME or have some research and development activities ongoing in your business, browse our list of government funding for R&D to see programs available to you.
If your business has not been incorporated for at least two years, its unlikely that your government funding applications will pass through the competitive review process. In this case, you should download a free Startup Funding Checklist to uncover all the milestones your business needs to achieve to be eligible for most Canadian government funding programs.