Are you a manufacturer, processor or technology company in southwestern Ontario seeking government funding to expand operations, create new products, acquire equipment, recruit and train staff, enter new markets or pursue research and development?
Whatever your goals, our grants and incentives experts can help. At Baker Tilly Windsor, we believe a modern accounting firm should be able to help clients through any opportunity or issue that may arise. That’s why we offer expanded services beyond the traditional areas of audit, tax and advisory.
Recognizing small‑ and medium‑sized enterprises (SMEs) may need support in a range of areas, we offer these services and more all under one banner. Instead of dealing with multiple boutique firms, save time and money by partnering with us.
Did you know there are nearly 2,000 government‑funded incentives in Canada? In fact, as a country, we have one of the largest pools of funding available for businesses. Yet, with such a vast array of potential options, searching, identifying and applying for the right incentives can be a daunting task – unless you have an experienced and knowledgeable advisor guiding you every step of the way.
Our team of experts has helped a broad range of SMEs secure funding to establish, build, expand and diversify their businesses. From government grants to tax credits and interest‑free loans, we make the process clear and seamless, allowing you to plan and execute your business goals with confidence and gain a competitive edge.
Let’s take a look at some of the funding opportunities that may be available to your business.
Grants and incentives for expansions or upgrades
FedDev Ontario Business Scale‑up and Productivity Program
- Provides repayable interest-free loans covering up to 35 per cent of eligible project costs
- Intended to assist high‑growth firms to scale up, expand and support technology demonstration and commercialization of new technologies
- Encourages early adoption/adaptation of leading‑edge technologies and processes to improve productivity; increase capacity to grow via market diversification and entry into global markets; and foster innovation, technology adoption and digital connectivity in rural areas
- Applications processed on a first‑come, first‑served basis
Southwestern/Eastern Ontario Development Fund (Ontario)
- Provides support for projects and investments of a minimum of $500,000 ($200,000 in rural areas)
- Companies must employ at least 10 people (five if located in a rural area) and commit to hiring five new employees
- Available streams include up to 15 per cent interest‑free loans that, based on achievement, can be forgiven up to 30 per cent, as well as up to 15 per cent grant funding for companies outside major urban centres
Ontario Automotive Modernization Program (O‑AMP)
- Provides a 50 per cent non‑repayable contribution up to $150,000 for eligible costs and supports projects focused on one or both of the following categories:
- Process technology adoption to implement advanced manufacturing hardware, software and/or training
- Tools and technologies to support new product development and lean manufacturing
CME Technology Investment Fund
- Provides direct financial assistance to SME manufacturers in southern Ontario in the form of a matching contribution of 50 per cent up to $50,000 to implement projects involving robotics, artificial intelligence and other machine learning applications, and advanced networks and the Internet of Things (IoT)
- Eligible costs can include capital equipment, materials, training on new equipment, installation of new equipment, professional service fees, as well as a company’s direct labour devoted to project management and completion
Grants for training employees
Canada‑Ontario Job Grant
- Enables employers to invest in training their workforce
- Provides a grant for up to 5/6 of total training costs for employers with less than 100 employees, or half of training costs for those with more than 100 employees, capped at $10,000 in government support per person for training costs
- Requires training to be delivered by an eligible third party trainer
- Applications processed on a first‑come, first‑served basis
Yves Landry Foundation AIME Green Initiative
- Provides manufacturers in south, central and eastern Ontario up to $100,000 to offset training expenses related to upskilling and retraining their workforce to adopt and adapt green manufacturing principles at the shopfloor level
- Applications processed on a first‑come, first‑served basis
R&D incentives
Industrial Research Assistance Program (IRAP)
The IRAP helps companies conduct R&D for new or improved products/processes. Here, R&D should relate closer to its true definition. Eligibility requirements include:
- Must be a SME in Canada, incorporated and profit‑oriented, with 500 or fewer full‑time equivalent employees
- It is important to have the objective to grow and generate profits through development and commercialization of innovation and technology
- IRAP involvement occurs prior to project start, can include advisory assistance via internal government agencies and could cover up to 80 per cent of direct labour costs
Scientific Research & Experimental Development (SR&ED) tax credit
- SR&ED projects qualify after they have occurred and must contain technological uncertainties, iterative activities/testing and related technological advancements
- Corporations earn Investment Tax Credits (ITCs) at either a 15 or 35 per cent rate on qualified expenditures, depending on ownership structure and taxable capital
- Funding can include labour, subcontracts, third party payments and materials consumed
- For every eligible labour dollar, the government provides an additional 55 per cent for overhead costs
- ITCs can reduce tax payable (non‑refundable 15 per cent position) or come as refundable/cash at the 35 per cent rate; in Ontario, if eligible for the 35 per cent rate category, an additional eight per cent refundable provincial credit with potential for an extra non‑refundable 3.5 per cent credit is added
Put our expertise to work
The above is a brief overview of the funding options and resources potentially available to your business. The details and stipulations can seem overwhelming, but that’s exactly what we’re here for. Whether you’re just starting up your enterprise or ready to take it to the next level, contact your Baker Tilly advisor today and let’s make it happen. Because our business is all about helping you manage and grow yours.
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