Invest in a funding strategy

Government grants and loans for manufacturing innovation can help offset costs for many significant initiatives, such as major business expansion projects. MangoStar_Studio/iStock/Getty Images Plus

Is your business aware that the Canadian fabricating and welding sector is within a key demographic to benefit from government funding? With a substantial range of programs available, government grants and loans for manufacturing innovation can help offset costs for many significant initiatives, such as major business expansion projects.

By investing in a funding strategy to obtain support for strategic innovation projects, companies may leverage financial grants and/or loans to help meet their goals at a faster and oftentimes more successful rate. Eligible businesses in the sector can access funding for business expansion projects such as adopting new technology or processes to maximize efficiency, target market research, events, marketing, and automation.

Delivered through the federal and provincial governments across the country, the following are five of the top government funding programs available to help Canadian manufacturing businesses with high-growth-potential projects focused on business expansion.

1. Business Scale-up and Productivity Program

Two Business Scale-up and Productivity Program (BSP) program streams are administered by the regional agencies FedDev Ontario and Western Economic Diversification Canada (WD). Offering slightly different levels of support, both programs focus on helping Canadian businesses with high-growth-potential projects to adopt or adapt innovative processes in advanced manufacturing, digital technology, value-added agriculture, and clean technology that support productivity, grow operations, and increase exports to global markets.

The FedDev Ontario BSP program provides Southern Ontario businesses with expansion loans of up to 35 per cent of project costs to a maximum $10 million. Applications are accepted on an ongoing basis with no submission deadlines.

The WD BSP provides up to 50 per cent of eligible project expenses to a maximum $5 million per project and $10 million per applicant for businesses located in Western Canada. The next application period has yet to be announced, but there are typically at least two intakes per fiscal year.

2. Eastern/Southwestern Ontario Development Fund

The Eastern Ontario Development Fund (EODF) and the Southwestern Ontario Development Fund (SWODF) are two business expansion funding programs that incentivize companies to invest in new facilities and equipment, as well as support economic development organizations, municipalities, and consortia in investing in infrastructure or implementing strategies to advance regional priorities. Eligible applicants can receive from $500,000 to $5 million in government funding through two project streams:

• The Business Stream attracts large-scale projects that have a significant impact on business productivity and create new employment opportunities within the company. Through the program, successful applicants receive grants or a combination of grants and repayable funding (government loans) to offset project costs.
• The Community Economic Development Stream supports community economic development projects that lead to business growth; generate broad positive economic impacts; and encourage innovation, collaboration, and cluster development.

3. FedDev Ontario Community Economic Development and Diversification Program

Administered by FedDev Ontario, the Community Economic Development and Diversification (CEDD) program aims to create sustainable economic growth for small communities located in Southern Ontario. Applicants can be businesses or not-for-profit organizations in the region that are working to diversify and transform their local economies.

Eligible applicants can receive up to $5 million in funding. The FedDev CEDD program has two program streams:

• The CEDD For-Profit Stream supports projects that foster economic development and diversification through increased competitiveness and employment opportunities in small and rural communities in Southern Ontario. It offers no-interest, repayable contributions from $250,000 up to $5 million per project for incorporated businesses, including Indigenous businesses.
• The CEDD Not-For-Profit Stream supports projects that address economic risks and needs of rural and small Southern Ontario communities and leads to economic development and diversification in the region. It offers non-repayable contributions from $250,000 up to $5 million per project for not-for-profit organizations.

4. Next Generation Manufacturing Program

The Next Generation (NGen) Manufacturing Super-cluster provides support for collaborative technology development projects that help Canadian manufacturing businesses compete globally. Administered by NGen Manufacturing Canada, the program supports groups of businesses that research and develop high-potential, innovative technologies to generate groundbreaking process transformation to de-risk the adoption of new technology.

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Through the NGen Manufacturing Program, innovative partnerships, comprising an eligible business working with at least three private-sector partner companies, can receive up to 44.4 per cent of eligible costs for projects valued between $500,000 and $20 million.

Eligible projects typically span 18 to 36 months and are complete upon the successful implementation of a new, technology-based manufacturing innovation.

5. Strategic Innovation Fund Program

The Strategic Innovation Fund (SIF) is a unique program targeted to support Canada’s industrial and technology sectors. The program oThers financial support (both grants and loans) of up to 50 per cent of project costs for activities that drive sustained productivity and economic benefits. SIF focuses on large-scale projects that request at least $10 million in contributions, meaning the minimum project size must be at least $20 million.

Five streams of funding are provided through SIF, and applicants can align their projects to address one of the following areas: (1) research, development, and commercialization, (2) business growth and expansion, (3) investment attraction and retention, (4) collaborative technology development and demonstration, and (5) national ecosystems.

The SIF program is open to businesses from all sectors across Canada, but potential applicants should keep in mind that this is an extremely competitive program. While an eligible company may qualify for funding, it must also demonstrate high growth potential and the ability to drive innovation in a strong technological development project.

Alena Barreca is the marketing co-ordinator at Mentor Works, 28 Bett Court, Guelph, Ont. N1C 1B9, 888-599-3111, www.mentorworks.ca.

Eligible businesses in the fabricating and welding sector can access funding for business expansion projects such as adopting new technology or processes to maximize efficiency. Sviatlana Lazarenka/iStock/Getty Images Plus