Key Government Contacts
Mr. Rick Mohorovich
Senior Business Consultant
Automotive and Advanced Manufacturing Investment Branch
Ministry of Economic Development and Trade
Trade and Investment Division
5th Floor, Hearst Block
900 Bay Street
Toronto ON M7A 2E1
Tel416-325-0457
Mr. Steve Haddon
Senior Business Advisor
Ministry of Small Business and Entrepreneurship
Ministry of Economic Development and Trade
Ministry of Research and Innovation
180 Elgin Street, Suite 810
Ottawa ON K2P 2K3
Tel613-242-3841 Toll Free1-800-267-6592Ext. 233
Mr. Ken Hitchmough
Industrial Technology Advisor
Industrial Research Assistance Program (IRAP) NRC – National Research Council
Tel 613-991-4425
Ms. Ellen Yachin
Senior Advisor
Program Delivery Unit- Advanced Manufacturing Investment Strategy (AMIS)
Ministry of Economic Development and Trade
900 Bay Street
Toronto ON M7A 2E1
Tel416-325-6746
Mr. Leigh Davison
Sector Competitiveness Branch- Office of Aerospace
Ministry of Economic Development and Trade
7th Floor, Hearst Block
900 Bay Street
Toronto ON M7A 2E0
Tel416-325-1359
Main Government Programs & Incentives
Strategic Aerospace and Defence Initiative (SADI)
Program Responsibility
Industry Canada, Government of Canada
Program Description
The Strategic Aerospace and Defence Initiative supports private sector industrial research and pre-competitive development (R&D) in Canada's aerospace, defence, security and space (A&D) industries. Industry characteristics for R&D in the A&D industries such as high development costs, long development lead times and long payback periods, combined with the cyclical nature of the industry and the fact that projects are high risk, make it difficult for the private sector to entirely fund an R&D project.
Through repayable project contributions, the Strategic Aerospace and Defence Initiative will encourage strategic research and development and leverage crucial private-sector R&D investment in the aerospace, defence, security and space industries. SADI will foster collaboration between research institutions, universities and colleges, non-profit organizations and the private sector. Supporting R&D in the industry also enables Canada to attract global A&D firms and first class scientific and engineering talent.
Eligibility Criteria
SADI is open to all Canadian companies in aerospace and defence (A&D) industries. The following activities may qualify for SADI.
- Industrial research: Planned research or critical investigation aimed at discovering new knowledge, with the objective that such knowledge may be useful in developing new products, processes or services, or in bringing about a significant improvement to existing products, processes or services.
- Pre-competitive development: The translation of industrial research findings into a plan, blueprint or design for new, modified or improved products, processes or services, whether intended for sale or use, including the creation of a first prototype that could not be used commercially. Pre-competitive development may further include the conceptual formulation and design of products, processes or services, as well as initial demonstration or pilot projects.
Funding
- SADI is expected to invest nearly $900 million in five years, with funding to reach a maximum of $225 million per year.
- Contributions to SADI projects will equal approximately 30 percent of a project's total eligible costs.
- Repayment periods will average 15 years starting approximately one year after R&D has been completed.
Program Type
Research and development, Financing
Contact Information
The Strategic Aerospace and Defence Initiative is administered through Industry Canada's Industrial Technologies Office. Click here to download the Application Guide.
Derek Yue
Senior Investment Manager
Environment Technologies, Industry Canada
151 Yonge Street, 4th Floor
TorontoONM5C 2W7
Tel: (416) 973-5159
Email:
The Advanced Manufacturing Investment Strategy (AMIS) Program
Program Responsibility
Ontario Ministry of Economic Development and Trade
Program Description
The Advanced Manufacturing Investment Strategy (AMIS) program is a $500 million multi-year repayable loan program intended to encourage eligible companies operating in Ontario to transform processes and adopt leading edge technologies that will increase productivity and competitiveness. This repayable loan program is interest free for up to the first five years and will provide loans for up to 10 per cent of total project costs. No project will exceed $10 million in contributions from the program.
Eligibility Criteria
The Advanced Manufacturing Investment Strategy (AMIS) is open to all sectors. Projects must, over 5 years, create/retain 100 or more high value jobs or have a minimum total project investment of $25 million. Eligible projects must be situated at facilities within Ontario and undertaken by companies that operate or will operate, by virtue of the project, in Ontario.
Note: The AMIS program does not provide loan funds to start-up companies, for business restructuring, or regular capital reinvestment.
Funding
AMIS will fund the best investments in high quality projects that will yield the greatest results for Ontario. If selected for funding, loan terms for the project would be negotiated on a case-by-case basis subject to, among others, the following conditions:
- Interest rates will be set at the Province's cost of borrowing for a comparable term plus 1%.
- Loan amount will be up to 10% of total project costs, to a maximum of $10 million per project.
- Interest on the loan may be forgiven for up to five years if a company achieves specified performance.
- Loans will only be made to financially established companies.
Please note AMIS is not an entitlement program, hence, companies that meet the criteria may not be automatically eligible.
Miscellaneous/Other Information
- Applications to the Advanced Manufacturing Investment Strategy (AMIS) program will be sought through a competitive “Call for Proposals” process. Please check the Ministry’s website for the latest round of closing dates. The program allows for up to three calls for proposals annually over five years.
- To download a copy of the Proposal and Business Plan Application Package click here.
- Ministry of Economic Development and Trade staff is available for a no-obligation Pre-Assessment meeting prior to the submission of your application to provide feedback on your proposal concept.
Program Type
Financing, business development
Contact Information
Advanced Manufacturing Investment Strategy (AMIS) program
Ministry of Economic Development and Trade
Sector Competitiveness Branch
6th Floor, Room 611A, Hearst Block
900 Bay Street
Toronto ON M7A 2E1
Tel: (416) 325-6867
Fax: (416) 314-7014
Email:
Website:
Canada Small Business Financing Program (CSBF)
Program Responsibility
Industry Canada
Program Description
The Canada Small Business Financing (CSBF) Program, under the Canada Small Business Financing Act, can assist small businesses in obtaining term of up to $250,000 to help finance fixed assets needs. Qualified lenders make the loans (chartered banks, caisses populaires, most credit unions, many trust, loan and insurance companies) and the leases are issued by participating lessors. CSBF loans are not available for the purpose of financing inventory, working capital or existing debt.
Eligibility Criteria
Most small businesses starting up or operating in Canada – excluding farming, charitable and religious enterprises – are eligible as long as their estimated annual gross revenues do not exceed $5 million during the fiscal year in which they apply for a loan or a lease. Businesses may be operated as sole proprietorships, partnerships or incorporated companies.
Funding
Under the CSBFA and the Small Business Loans Act (SBLA), a borrower’s maximum outstanding loan may not exceed $250,000. Loan proceeds may be used to finance up to 90% of the cost of the asset, including non-refundable taxes and duties. Lenders are obligated to take security in the assets financed.
Under the CSBFA, borrowers may choose between:
- Floating rate loans, where the interest rate fluctuates with changes in the lender's prime lending rate over the term of the loan, but cannot be more than 3% over the lender's prime lending rate; and
- Fixed rate loans, where the interest rate is fixed for the term of the loan, but cannot be more than 3% over the lender's residential mortgage rate for the applicable term
This 3 % includes an annual administration fee of 1.25% payable by the lender to the government. A loan can be prepaid and/or the interest rate can be converted to a fixed or floating rate. The lender may charge a penalty for the prepayment or conversion of the loan.
Miscellaneous/Other Information
The period during which a loan must be repaid will generally coincide with the expected economic life of the asset being financed, up to a maximum of 10 years. Installment payments on the loan principal must be scheduled at least annually, but monthly payments are usually called for depending upon arrangements between the borrower and the lender.
Program Type
Financing, business development, Financing - capital assets
Contact Information
Contact the lender of your choice to find out more about the CSBFA.
For further details about the CSBF Act, the program parameters or the list of lenders, visit the Industry Canada website: (Information aussi disponible en français)
Canada Small Business Financing Program Info line: (613) 954-5540 or 1-866-959-1699.
E-mail:
Canadian Commercial Corporation (CCC)
Program Responsibility
Canadian Commercial Corporation is a Crown corporation reporting to Parliament.
Program Description
As Canada’s international contracting agency, Canadian Commercial Corporation helps Canadian exporters secure market access primarily in complex government-to-government markets. CCC builds confidence in Canadian exports by giving the exporters the credibility of a Government guarantee of contract performance that opens doors and leads to contracts with improved terms. The US Department of Defense business represents two-thirds of CCC's contract billings. CCC also provides export-related assistance and advice to small-and-medium-sized enterprises (SMEs).
The following are some of the principal products/services CCC offers:
Business Leads helps Canadian exporters to identify and pursue qualified leads and to support their international sales efforts.
- SourceCAN opportunity matching
Market Access breaks down the barriers by giving foreign buyers and Canadian exporters access to government-to-government vehicle that simplifies and streamlines the procurement process.
- International prime contractor solution
- U.S. General Services Administration (GSA) schedules submission service
- U.S. Department of Defense prime contractor solution
- NASA prime contractor solution
Export Contracting help exporters to close sales by securing the best possible terms and conditions.
Program Type
Export business development
Contact Information
Canadian Commercial Corporation
50 O'Connor Street, 11th floor
Ottawa ON K1A 0S6
Tel: (613) 996-0034
Toll-free in Canada : 1-800-748-8191
Email:
Website:
Export Development Canada
Program Responsibility
Export Development Canada is a Crown Corporation that is financially self-sufficient and operates on commercial principles.
Program Description
Export Development Canada (EDC) provides innovative financing, insurance and bonding solutions to Canadian companies that export goods and services, or invest in other countries. In 2005 EDC‘s services and deal structuring capabilities helped to facilitate $57.5 billion in transactions for nearly 7,000 Canadian companies. Approximately 90 per cent of EDC’s customers are small and medium-sized businesses.
The following are some of the EDC financing and risk management programs for Canadian companies and their international customers.
For Canadian companies that export and for foreign customers:
- Pre-shipment Financing
- Foreign Exchange Facility Guarantee (FXG)
- Security Compliance Loan
- Foreign Buyer Financing
- Equity Investments
- Lines of Credit
- Corporate Loan Syndication
- Project Finance
Credit insurance for export transactions and Contract insurance for capital goods, service contracts and projects:
- Accounts Receivable Insurance (ARI)
- EXPORT Protect
- Performance Security Insurance (PSI)
- Contract Frustration Insurance (CFI)
- Political Risk Insurance (PRI)
Contract Bonding Services
- Performance Security Guarantee (PSG)
- Surety Bond (re) Insurance (SBI)
Program Type
Business development, export, financing, Financing - Exports, Advice and Consultation
Contact Information
Export Development Canada
151 O'Connor
Ottawa ON K1A 1K3
Tel: (613) 598-2500, 1-866-283-2957
Fax: (613) 237-2690
Website:
Capital Leasing Pilot Project
Program Responsibility
Industry Canada
Program Description
The Capital Leasing Pilot Project, under the Canada Small Business Financing Act (CSBFA), assists small businesses in obtaining capital leasing up to $250,000 for new and used equipment. Capital leases are made directly by participating leasing companies (lessors). The Capital Leasing Pilot Project was created to help small businesses access additional financing through capital leases, to finance new or used equipment for the expansion or creation of their business.
Eligibility Criteria
Most small businesses starting up or operating in Canada – excluding farming, charitable and religious enterprises – are eligible as long as their estimated annual gross revenues do not exceed $5 million during the fiscal year in which they apply for a capital lease. Businesses may be operated as sole proprietorships, partnerships or incorporated companies.
Funding
Capital leases may be used to finance:
- new or used equipment necessary for the operation of a business
- registration fee equal to 2% of the financed cost of the equipment, provided that the total amount of the capital lease does not exceed $250,000.
- the total outstanding balance of all capital leases made under the Pilot Project and of all loans made under the CSBFA and the Small Business Loans Act (SBLA) cannot exceed $250,000.
Capital leases under the pilot project are not eligible:
- if the cost of the equipment exceeds $250,000
- if equipment for which the financed cost is greater than 100% of the cost of the equipment
- if the financing is used for: real property or immovables; equipment that is the subject of a conditional sale or a sale-lease back; and software related to the operation of the small business.
The imputed rate of interest (which is used to calculate the scheduled payments) cannot exceed 13.25% plus the Government of Canada bond rate for the term of the lease. This interest rate includes an administration fee of 1.25%.
Miscellaneous/Other Information
Contact participating lessors to find out more about this pilot project. The list of the participating leasing companies in the Capital Leasing Pilot Project is regularly updated on the Web site:
Program Type
Business Development, financing, Financing - capital assets
Contact Information
For further details about the CSBF Act, the program parameters or the list of lessors, visit the Industry Canada website:
Canada Small Business Financing Program Info line: (613) 954-5540 or 1-866-959-1699.
E-mail:
Ontario Commercialization Investment Funds Program (OCIF)
Program Responsibility
Ministry of Research and Innovation
Program Description
The Ontario Commercialization Investment Funds program intends to facilitate the commercialization of technology derived from research and development performed in Ontario. The program provides a grant to leverage seed capital for spin-off technology companies created by faculty, staff or students of research institutes.
How the program works
- A research institute or a group of research institutes, as sponsor(s), applies to the Ministry of Research and Innovation for registration of a corporation or partnership as an Ontario Commercialization Investment Fund corporation or partnership (OCIF).
- The ministry reviews the application and related documentation. If approval is granted, a registration number is assigned and a certificate of registration is issued.
- The OCIF raises capital from eligible investors.
- When an OCIF corporation/partnership plans to invest or has invested in an eligible business, it will apply to the Ministry of Research and Innovation (MRI) for a certificate indicating that the investment is an eligible investment and the amount of the grant available in respect of the investment.
- If approval is granted, MRI will issue a certificate stating that the investments or proposed investments are eligible, and specifying the amount of grant available.
Eligibility Criteria
Please refer to the publication “A Guide to the Ontario Commercialization Investment Funds Program” for a description of the following program elements. Click here to download the Guide.
- Sponsors
- Registration of an OCIF
- Restrictions
- Eligible investors
- Eligible investment
- Eligible business
- Investment Certification
Funding
The Ontario Commercialization Investment Funds Program provides research institutions in Ontario with an alternative source of the investment capital necessary to promote growth and create jobs. Once a year, the OCIF applies to the Ministry of Research and Innovation for a grant, which is calculated as 30 per cent of the amount of eligible investments. The maximum amount of grant available to one or more OCIFs in respect of a particular eligible business and all businesses related to the eligible business is $225,000 (maximum investment of $750,000).
Program Type
Research and development, financing, tax incentive
Contact Information
For information regarding eligible investments, eligible businesses or for an application for an OCIF investment certificate, please contact:
John Marshall, Director
Economic Development and Innovation Directorate
Ministry of Research and Innovation
56 Wellesley Street, 11th Floor
Toronto ON M7A 2E7
(416) 325-6644
(416) 326-9654 (Fax)
Email:
Website:
ecoEnergy for Renewable Heat
Program Responsibility
Natural Resources Canada
Program Description
The ecoENERGY for Renewable Heat program will invest $36 million over four years to: increase the use of renewable thermal energy; help develop renewable thermal energy industry capacity; and contribute to cleaner air by displacing fossil fuel-based energy use for space heating and cooling, and water heating in Canadian buildings.
Incentives will be offered to the industrial/commercial/institutional entities to support the installation of solar space and water heating. Natural Resources Canada estimates suggest the program will support installations in about 700 buildings by 2011.
ecoENERGY for Renewable Heat will also help establish solar and geothermal (ground-source heat pump) technologies in the marketplace by supporting the development of industry standards and certification processes, promoting the adoption of these technologies by building codes and provincial and municipal regulations, and training system designers, technicians and installers.