Two manufacturers, Hammond Manufacturing Company and Ontario Drive & Gear Limited, will receive government funding valued up to $6.6 million to expand their operations. This government funding, among other benefits, will help the two businesses to purchase new, innovative technologies and train their employees on how to best use the equipment.
By receiving Ontario government funding such as the Investing in Business Growth and Productivity (IBGP) and CME SMART Advanced Technologies for Global Growth, the manufacturers will be able to enhance productivity, generate and maintain up to 165 jobs, and create other opportunities within the Canadian economy.
Continue reading this blog to learn more about the two businesses, their projects, how much funding they were awarded individually, and how your Ontario manufacturing business can access government grants and loans.
Hammond Manufacturing Company: $3.46 Million in Ontario Small Business Loans
The Hammond Manufacturing Company of Guelph, Ontario will receive up to $3.46 million in business expansion funding. With this Ontario small business funding, the company will purchase new machinery that increases production output. In addition to modifying their existing plant, the company will also be enhancing their new plant to make it a state-of-the-art manufacturing facility.
In a separate announcement recently made about the company, Hammond will also receive up to $100,000 in Ontario government grants from the CME SMART Advanced Technologies for Global Growth program. This small business grant, intended exclusively for Ontario manufacturers, assists with technology assessments and adoption projects that provide enhanced productivity and new exporting abilities.
Ontario Drive & Gear Limited: $3.14 Million in Ontario Government Funding Support
Ontario Drive & Gear Limited, located in New Hamburg, will use their government funding to purchase new gear manufacturing equipment, expand their advanced engineering department by up to 10,000 square feet, and develop new product lines that can be sold domestically and internationally.
The company is experienced with using Ontario government funding, as shown by their previous wins with the FedDev Ontario Training and Productivity Initiative. When used in combination, Investing in Business Growth and Productivity (IBGP) and the Training and Productivity Initiative will help businesses to purchase new equipment, then train their employees on how to use it safely and efficiently.
Ontario Government Grants & Loans for Manufacturing Business Expansion
Ontario manufacturers should consider the following government grants and loans when considering new growth projects:
IBGP offers repayable government funding support valued up to 25% of eligible project costs to a maximum $20 million. Ontario manufacturers can access these funds to expand their facilities, integrate innovative technologies, and increase production to leverage export markets. IBGP provides their funding as 0% interest loans, which for businesses provides an excellent opportunity to extend cash flow and complete their project at an accelerated pace.
Ontario small businesses may receive up to 35-50% of project costs to a maximum $100,000 in Ontario government grants towards advanced technology assessments and the purchase/installation of innovative manufacturing equipment that leads to improved productivity and export sales. Manufacturers may use this program to learn about bottlenecks in their production cycle and then purchase the tools to overcome their difficulties.
Become the Next Government Funding Success Story
Hammond Manufacturing Company and Ontario Drive & Gear Limited are clients of Mentor Works who are increasing their competitiveness by accessing Canadian government funding. Want to learn more about how your business can access these programs like these companies did? The following resources will help get you started.
By accessing Mentor Works’ Canadian Small Business Funding Guide, businesses can develop an understanding to the Canadian government funding landscape, including types of funding that they may wish to pursue.
Afterwards, businesses can use the Project Expense Planning & Funding Calculator to determine the value of government grants and loans that your project may be eligible to receive. With these resources, business owners and executives will become more confident in using government grants and incentives to fund their projects.
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