Canadian Government Grants for Economic Development in Northern Communities

The Federal Economic Development Agency for Northern Ontario (FedNor) provides government funding support for building strong and sustainable communities in Northern Ontario through their Community Economic Development initiative. This initiative is a major component of the Northern Ontario Development Program (NODP), which provides Canadian Government funding to accelerate the progress of Northern Ontario’s economic priorities.

Community Economic Development Funding

The Community Economic Development initiative provides support for up to 33 percent of eligible capital costs and up to 50 percent of eligible non-capital costs.


Capital Costs:

  • servicing of industrial lands;
  • waterfront development;
  • leasehold improvements; and
  • machinery, equipment and technology.



Non-Capital Costs:

  • fees for professional and technical services, including project implementation, engineering services;
  • costs related to community engagement and planning, such as facilitation, rental of facility;
  • costs related to producing and disseminating results of studies/plans;
  • marketing costs including design, promotional materials, advertising, product demonstrations and participation at trade shows; and
  • travel expenses and labour costs.








Funding would be segregated into fully repayable loans and conditional business funding grants. The contributions are normally repayable where applicants stand to profit from the project; however, FedNor determines the suitability of projects on a case-by-case basis. Applicants would also be eligible to receive an additional $27,500 in non-repayable grant funding for small business and municipalities to hire a recent post-secondary graduate through the FedNor Youth Internship Program.

FedNor Canadian Government Funding Objectives

FedNor has set a number of objectives and goals for their Canadian Government funding contributions through the Community Economic Development component of the NODP:

  • Improved identification and planning of community objectives.
  • Strengthened community economic competitiveness
  • Improved business retention/attraction.
  • Increased collaboration amongst industry and community stakeholders.

To achieve these objectives, applicants would be eligible in receiving government funding for various activities, including but not limited to:

  • Servicing of Industrial Lands
  • Waterfront Development
  • Leasehold Improvements
  • Machinery, Equipment, and Technology
  • Designing and Engineering Regional/Community Plans
  • Community Engagement Initiatives
  • Marketing and Regional Promotional Activities

Eligible Applicants for Community Development Funding

Organizations looking to apply for government grant funding through the Community Economic Development Initiative of the NODP must be classified as one of the following organizations:

  • Non-Profit Organizations (NPO) located in Northern Ontario. These would include regional economic development agencies, community or cultural organizations, and industry associations, networks, and alliances.
  • Municipalities, municipal organizations, and First Nations groups located in Northern Ontario.

Learn More About Small Business Government Grants

Mentor Works Ltd. provides Canadian government funding advice and support for SMEs looking to expand or improve their competitiveness. To learn more about the Canadian Government Grants that would apply to your business, please contact a Canadian Government Funding Expert or subscribe to our Weekly Ontario Small Business Funding Newsletter or follow our posts on Twitter, LinkedIn, Google+, and Facebook.

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