Access post-pandemic funding

There is no doubt in anyone’s mind that the COVID-19 pandemic has caused significant challenges for businesses all around the world. Due to labour shortages, supply chain constraints, and production setbacks, many businesses have closed their doors for good, and many others are struggling to hang on.

With strong recovery efforts now at the forefront, the Jobs and Growth Fund (JGF) has been announced. It is a new federal government funding program investing a total of $700 million to help Canadian businesses reach their long-term growth goals, including job retention and creation of new jobs.

The JGF is managed provincially by Canada’s regional development agencies, including FedDev Ontario for Southern Ontario applicants, FedNor for Northern Ontario applicants, and Western Economic Diversification Canada (WD) for applicants in Western Canada. Upwards of $70 million from the JGF is exclusively being set aside for small-business applicants who established their businesses after January 2020 that still meet the program’s eligibility criteria.

As Canada strives to rebuild amidst the continuation of COVID-19, it’s important that businesses stay informed of the government grants and loans programs that are available to help them meet project goals and overcome challenges caused by the pandemic.

“By investing in our job creators and the organizations that support them, the Jobs and Growth Fund will help to create quality jobs, pursue inclusive and clean growth opportunities, and empower businesses and communities from coast to coast to coast,” said Mélanie Joly, minister of economic development and official languages.

Federal Jobs and Growth Fund

The federally funded JGF supports Canadian business projects that contribute to job creation and long-term economic growth and focus on rebuilding the Canadian economy following negative effects of COVID-19.

Amount of Funding

Eligible applicants for the JGF are small and medium-sized businesses (SMEs), including co-operatives, not-for-profit organizations and community economic development partners, and Indigenous organizations.

Eligible Canadian businesses, including manufacturers, can receive interest-free, repayable contributions for up to 50 per cent of authorized costs. Not-for-profit organizations can receive non-repayable contributions for up to 90 per cent of eligible costs. Indigenous organizations may receive contributions for up to 100 per cent of eligible project costs. Project contribution amounts cannot normally exceed $10 million.

Eligible Projects

To be eligible for the JGF, manufacturing business projects must:

1. Preserve Canada’s innovation objectives and support SMEs in digital adoption.

This can be done by investing in advanced technologies that help scale businesses, enhance their capabilities, and increase resilience. It also can be done by supporting the development or adoption of digital and technological options to increase and promote business productivity.

2. Strengthen the capacity in manufacturing for Canada’s recovery and growth.

Funding recipients must develop emerging areas of global competitive advantage; support scale-up and market expansion activities; or support supply chain adaptation and diversification opportunities in critical sectors such as food production, medical supplies, and biomanufacturing.

3. Support the transition to a net-zero green economy.

Funding is available to help communities and businesses plan and drive clean, sustainable economic growth via clean technology and processes.

4. Foster an inclusive recovery following COVID-19.

Funding recipients need to increase the participation of underrepresented groups in the economy by supporting not-for-profit organizations that provide funding, business services, and training for a more equitable workforce. They also should support businesses owned or majority-led by underrepresented groups, partner with organizations to catalyze the development of green regional clusters, support the development and adoption of clean technology, and work with organizations supporting businesses to transition to a green economy.

Application Timeline

Applications will be accepted on a continuous basis until all funding is allocated, but all projects must be completed before March 31, 2024. Certain costs also may be eligible on a retroactive basis up to 12 months before the receipt of the project application, but no earlier than April 19, 2021.

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