Small Business Loans Ontario: Investing in Business Innovation (IBI)

bigstock-Asian-Business-Team-29739074Investing in Business Innovation (IBI) small business loans Ontario program is run by FedDev Ontario with the aim of assisting start-up in the commercialization of new products, processes, and practices. For businesses that are having difficulty moving past the initial hurdles of commercialization, the IBI Canadian government funding for small business will accelerate the commercialization process through increasing, stimulating, and leveraging investments from angel and venture capital investments.  IBI small business loans Ontario also benefits the Angel and venture capital Investor network through attracting new investments and supporting the growth of investment funds.

IBI Canadian Government Funding Details

To be eligible for IBI, the SME will have to employee less than 50 full-time positions and be a registered Canadian business in Southern Ontario that is planning to take on a new commercialization project.  Before Investing in Business Innovation Canadian government funding can be secured, the SME must have initiated the funding process for their commercialization activities by two thirds (66%) from an angel or venture capital investor in Southern Ontario. Once this is determined, FedDev Ontario will provide a repayable 0% loan contribution for 33% of total cost, with a maximum FedDev Ontario contribution of $1 Million. SMEs can only apply to have one project funded under the IBI small government funding initiative.

Investing in Business Innovation Time Line

Investing in Business Innovation is accepting applications continuously, with funding being available from April 1, 2014.

Investing in Business Innovation Ontario Small Business Loans Success Stories

There are several examples of Ontario small and medium-sized firms that have successfully accessed IBI Canadian government funding for small business.

  • A software developer in Stratford, Ontario received nearly $1 million in 2011.  The firm’s CEO explained that not only did the funds help attract more than 22 additional investors but it also helped them do their part to help stimulate other members of the local economy.
  • A Waterloo, Ontario firm that develops electronic human resource management tools received $250,000 in funding through FedDev’s IBI small business loans program.
  • Canadian government funding for small businesses in the Waterloo Region to the tune of $6.4 million offered through FedDev in 2013.

Costs Eligible for Ontario Business Loans Coverage

The following costs can be covered by IBI small business loans Ontario:

  • Product and process applied research
  • Technology development
  • Engineering design
  • Labour and operating expenses
  • Supplies and Materials
  • Consultant fees
  • Certification
  • Piloting and demonstration

Costs Ineligible of Government Funding Canada

The following costs are ineligible for Ontario small business loans support:

  • Land, building and major capital acquisitions
  • In-kind contributions including activities related to mentoring, networking and skills developing cannot be related to the third party cash contributions
  • Any business activities not directly related to the commercialization project
  • Costs that were incurred prior to the date of FedDev approval

Ontario Small Business Loans Repayment Details

Small business loans Ontario repayment terms are negotiated depending on the SMEs forecasted repayment ability, duration of commercialization activities, and the time required to successfully commercialize the new product, process, or practice in question.  Once all of these factors are considered, the repayment cycle will begin as soon as possible.

Additional information on IBI Government Funding Canada:

This program has launched for 2014.  Learn more about this program or click on “get started” to contact a Canadian government funding expert about your application.


Learn More about Your Canadian Government Funding Options

Are you interested in learning more about Canadian government grants and small business loans available to your company?  Sign up today to receive weekly alerts via our Canadian government funding weekly e-newsletter and also don’t forget to follow us on LinkedIn.


  1. Our Group is seeking Funding and/or Government Program assistance to advance the use of Lightweight, Interlocking, Solid, Cellular Concrete Blocks and Panels as an alternative to the heavy Concrete Blocks and Panels sold to the Building Industry.


    1. Thank you for sharing Allan! I have followed up with you via email. Hopefully you can make it to our next free Canadian Government Funding Workshop, otherwise I will be happy to put you in touch with someone from our team to answer any questions you may have about this and other related programs. Best Regards~

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