The Investing in Business Innovation (IBI) small business loans program was created as part of the $530 million Southern Ontario Prosperity Initiatives (SOPIs). Provided through the Federal Agency of Economic Development for Southern Ontario (FedDev Ontario), IBI provides funding for early stage businesses to commercialize new, innovative products and processes. For many businesses overcoming technology and innovation commercialization challenges, the provision of extra capital resources may assist in bringing their new innovative offering to market. IBI small business loans provide up to $1 million at a 0% interest rate, making this fund a great option for businesses looking to expand their cash flow.
Company Eligibility Requirements for IBI Small Business Loans Ontario
The Investing in Business Innovation fund’s Early Stage Businesses stream will provide business loans worth up to 33% of eligible project costs (to a maximum $1 million). The remaining 2/3 of project funding must be raised internally with a minimum 33% provided through venture capital. Projects must be backed by venture capital before applying for the IBI program to ensure innovative focus and market support once a solution has been developed.
General Eligibility for IBI Ontario Government Loans
Companies wishing to leverage Investing in Business Innovation loans need to follow certain eligibility requirements prior to applying for funding. Businesses must:
- Be incorporated (either federally or provincially);
- Have headquarters in southern Ontario; and
- Employ between 1-50 full-time staff with plans to create new jobs.
Project and Expenses Eligibility
Investing in Business Innovation is specifically designed to assist in commercialization projects. For full project and expenses eligibility, view our blog on specific IBI eligibility criteria.
IBI Ontario Government Funding Success
Small businesses from across southern Ontario have already taken advantage of Investing in Business Innovation funding. Discover how their innovative projects were able to receive government funding through these stories:
- Four early stage businesses were awarded a total of $4.5 million in IBI funding for innovative technology and systems improvement projects.
- Over 22 Northumberland tech startups have received funding to finish development and begin the commercialization of new technologies.
- $1.4 million in IBI funding was awarded for two projects, including a web-based business which is developing technological features to differentiate itself from
Learn More about Investing in Business Innovation Ontario Loans for Small Business
Additional Resources for Ontario Small Businesses
For a quick comparison of IBI and another similar fund, Investing in Business Growth and Productivity (IBGP), view our Comparing Business Expansion Loans infographic to understand the similarities and differences of each program. Mentor Works is the Canadian Government Funding Expert and can help your business explore ways to increase cash flow and complete new projects. In addition to Mentor Works’ free government funding e-newsletter, businesses are welcome to attend an upcoming small business grants and loans webinar to learn more about programs tailored towards their industry or project type.