Southwestern Ontario Development Fund
$5,000,000.00
Grant
Description:
The Southwestern Ontario Development Fund provides support for projects and investments to existing businesses, municipalities and not-for-profit organizations for economic development in southwestern Ontario. The objective of the program is to provide financial support and services to help growing companies in southwestern Ontario make investments to:
1. Grow their businesses
2. Improve productivity
3. Invest in innovation and skills development
4. Pursue new markets
5. Generate broad positive regional economic impact
6. Create new good, sustainable jobs
A project is a distinct undertaking, separate from ongoing operations, that will result in benefits to the organization such as business growth or access to new markets.
Comments on Funding:
The types of support available include:
1. Funding support
For Business Projects
a) Loans: Up to 15% funding to a maximum of $5M, interest free during the project period (up to 4 years). If you achieve your investment and job targets, up to 30% of the loan (to a maximum of $500,000) may be forgiven.
b) Grants: Grants are available only for specific circumstances, up to 15% to a maximum:
i. Of $500,000 if your company has fewer than 100 employees and is based in rural Ontario (population of your community is less than 100,000 or population density is less than 100 people per square kilometre)
ii. Of $1,500,000 for strategic projects that are foreign direct investments or from companies competing against other jurisdictions (in limited circumstances)
For Community Economic Development Projects
a. Grant: Up to 50% of eligible project costs for a maximum grant of up to $1.5 million.
2. Complementary services and support
Complementary Services and Supports are available when you submit a complete application to the Southwestern Ontario Development Fund or Southwestern Ontario Development Fund through the Regional Development Program. These services are available for the duration of your project regardless of the funding outcome. Services will be coordinated by working with partner ministries until they are delivered, closed-out or finalized.
a. Business Projects: Businesses may be eligible for other assistance related to advisory services, assistance with environmental compliance approvals, assistance in accessing skills and talent, and information related to leveraging available tax credits.
b. Community Economic Development Projects: Applicants may be eligible for other assistance related to advisory services and navigation support for land-use planning and workforce development.
May 22, 2025
Eligibility:
The fund supports business and community economic development projects.
1. To be eligible, businesses need to:
a) Have at least 3 years of operations/financial statements
b) Employ at least 10 people (or 5 if you are in rural Ontario)
c) Commit to creating at least 5 new jobs (or 30% increase for companies with fewer than 15 employees)
d) Invest at least $500,000 in their project (or $200,000 if you are in rural Ontario)
e) Be located in, or plan to locate in, a community in southwestern Ontario
2. To be eligible, projects need to:
a) Be led by municipalities, economic development organizations or sector organizations
b) Focus on economic and business development and job creation in the community or region by investing in infrastructure or implementing strategies to advance regional economic development priorities
c) Lead to measurable outcomes including private sector investment, growth and job creation
d) Invest more than $100,000
e) Have private sector support
f) Be used for activities that are new to the organization
Application Steps:
1. Complete the online self-assessment tool.
2. Contact a regional advisor for assistance with your application.
3. Register for Transfer Payment Ontario (TPON).
a. TPON is Ontario’s online grant application system. Ensure you have all necessary details such as the legal business name and official documents (e.g., CRA Business Number) ready for registration. For technical assistance, contact TPON Customer Service Line at 1-855-216-3090 or email at tponcc@ontario.ca.
4. Work with your regional advisor to complete the application form and submit it through TPON, along with any required supplemental information.
Documentation Needed:
For more information about the program, please contact us by e-mail at rdp@ontario.ca or
swodf@ontario.ca
Other Things to Note:
You are not allowed to combine (or “stack”) Southwestern Ontario Development funding with other provincial programs.
About the author
Maurice