FAQs: Investing in Business Growth and Productivity for SMEs
IBGP stands for Investing in Business Growth and Productivity. The program has two streams of funding available. One for small and medium sized businesses (SMEs) and one for not-for-profits(NFPs). This article provides additional information on the Ontario government grants program for SME’s.
What is the Purpose of IBGP Ontario government grants and loans?
The funding from this project is directed towards projects that improve the efficiency and productivity of SMEs or that provide SMEs with the opportunity to access global markets or improve market diversification.
For the SME stream, who is eligible to apply for IBGP Ontario government grants & loans?
Applicants must meet the following criteria:
- Be located in southern Ontario
- Be Canadian owned
- Have between 15 and 1000 employees
- Demonstrate the in-house skills and expertise to complete the proposed project
- A strong financial and project success track record
- 75% or more of the project costs as cash or available funding from other verifiable sources
What types of projects will the IBGP government grants support?
IBGP will support the following types of projects:
- Market development
- Market diversification
- Improvements to business productivity
- Business expansion
- Improvements to or expansion of facilities
What costs are eligible for reimbursement through IBGP?
All costs that are eligible for reimbursement must be reasonable and directly related to the project. Eligible costs include: labour, third party expertise, non-capital costs and capital costs.
What costs are not eligible for IBGP Ontario government grants and loans?
Costs that are incurred prior to project approval and the signing of an agreement with FedDev Ontario are not eligible. The cost of ongoing or overhead for running the business are not eligible. Neither is the purchase of lands or buildings. All projects must be completed and all expenses incurred by December 31, 2018.
How much funding is available through the IBGP program?
IBGP will fund up to 25% of the eligible project costs to a maximum of $20 million as a loan to the SME. The SME must provide evidence of having secured the remaining 75%. Note that in-kind funding is not eligible to be a part of the 75%. Stacking of funds with federal funds to a maximum of 75% of the project costs is permitted.
When is the deadline to apply for the IBGP program?
IBGP accepts applications on a continuous basis. Applications are reviewed and assessed when they are received.
Learn More about IBGP Funding for Small Business
Find out more by choosing from one of the following blogs:
How do we find out more about this government grants and loans Ontario program?
Contact a government funding expert at Mentor Works. Please follow Mentor Works on the social media network of your choice for regular updates on funding opportunities for your business: LinkedIn, Twitter, YouTube, Google+, Facebook, or Tumblr.