If you are expanding your existing business operations in Northern Ontario, you can apply for funding in the form of a contribution up to $400,000 to cover 20% of the project costs, with an optional term loan of up to $600,000 to cover an additional 30% of the project costs. Or, apply for a term loan only of up to $1 million to cover up to 50% of the project costs.
Who is Eligible?
Businesses expanding existing operations in Northern Ontario.
What Projects are Eligible?
Eligible projects, activities and associated costs include, but are not limited to:
- Capital construction
- Leasehold improvements
- New or used equipment including capital leases
- Land servicing costs
- Information & communications technology (ICT) investments
- Marketing for new products and business initiatives (limited to a maximum of 20% of all other eligible project costs, or $75,000, whichever is less)
- Training costs incurred with third parties (limited to a maximum of 20% of all other eligible project costs)
Evaluation Criteria
Factors that will be considered during evaluation of applications will include but not limited to:
- Job creation
- Level of investment from other sources to be secured by the applicant
- Strength of the applicant’s detailed business plan
- Does not unreasonably impact existing Northern Ontario businesses
- Net economic benefits for Northern Ontario
Other business activities that, in the opinion of the NOHFC Board of Directors, will result in an economic development advantage for Northern Ontario may be considered.
The NOHFC Board of Directors may consider exceptions to these eligibility criteria for projects that address a priority economic need in Northern Ontario.
Funding
- The NOHFC holds four application intake rounds during the year for the Grow a Business Stream.
- Funding can be provided through three options:
- Funding in the form of a conditional contribution only of up to 20% of total eligible costs to a maximum of $400,000.
- Funding in the form of a conditional contribution of up to 20% of total eligible costs to a maximum of $400,000, plus a term loan of up to 30% of total eligible costs to a maximum of $600,000.
- Funding in the form of term loan only of up to 50% of total eligible costs to a maximum of $1,000,000.
Funding for each project is determined by the NOHFC Board of Directors, and limited funding is available. Not all projects meeting the criteria will necessarily receive funding.
What is Not Eligible?
Ineligible projects, costs and activities include but are not limited to:
- Retail and consumer service businesses that primarily earn revenue by providing products and services directly to individuals
- Ongoing operating costs including maintenance
- In-kind contributions
- Restructuring or refinancing of existing business operations
- Accommodation & food service businesses and related business activities
- Businesses that are primarily involved in wholesale activities
- Business plans / strategic plans / feasibility studies etc.
- Assets acquired through operating leases
- Research and development
- Land purchase/lease
- Rolling stock (e.g. cars, trucks & boats and motors)
- Project management costs / consulting costs / administration costs
- Mineral exploration, mine development and milling operations
- Working capital
- Cost of inventory
- Cellular and internet service projects
- Capital projects or leasehold improvements to residential or personal properties
- Acquisitions and buy-outs of existing businesses
- Electricity generation projects
The NOHFC Board of Directors may consider exceptions to these eligibility criteria for projects that address a priority economic need in Northern Ontario.
Program Requirements
- The applicant is expected to secure balance of funding/financing necessary to implement the project.
- For growing a business, it is expected that the project will result in full-time equivalent jobs creation or retention in Northern Ontario.