Southwestern Ontario Development Fund Opens for New Round of Applications

Application Period 19 submission period: March 19, 2025 – May 21, 2025
Notification date: August 14, 2025

Before applying, applicants are encouraged to contact our team of Economic Development Officers who can help assess the fit with the program and provide advice on application preparation by calling (519) 332 1820 or email contact@sarnialambton.on.ca

The information below is from https://www.ontario.ca/page/southwestern-ontario-development-fund

Overview

The Southwestern Ontario Development Fund provides support for projects and investments to existing businesses, municipalities and not-for-profit organizations for economic development in southwestern Ontario. The objective of the program is to provide financial support and services to help growing companies in eastern and southwestern Ontario make investments to:

grow their businesses
improve productivity
invest in innovation and skills development
pursue new markets
generate broad positive regional economic impact
create new good, sustainable jobs

A project is a distinct undertaking, separate from ongoing operations, that will result in benefits to the organization such as business growth or access to new markets.

The types of support available include:

funding support
complementary services and support

Who is eligible

The fund supports business and community economic development projects.

Business projects
To be eligible, businesses need to:

have at least 3 years of operations/financial statements
employ at least 10 people (or 5 if you are in rural Ontario)
commit to creating at least 5 new jobs (or 30% increase for companies with fewer than 15 employees)
invest at least $500,000 in their project (or $200,000 if you are in rural Ontario)
be located in, or plan to locate in, a community in southwestern Ontario

Community economic development projects
To be eligible, projects need to:

be led by municipalities, economic development organizations or sector organizations
focus on economic and business development and job creation in the community or region by investing in infrastructure or implementing strategies to advance regional economic development priorities
lead to measurable outcomes including private-sector investment, growth and job creation
invest more than $100,000
have private sector support
be used for activities that are new to the organization

Types of support

Funding

Business projects

A. Funding amount
Up to 15% of eligible project costs.

B. Loans
Up to 15% funding to a maximum of $5M, interest free during the project period (up to 4 years). If you achieve your investment and job targets, up to 30% of the loan (to a maximum of $500,000) may be forgiven.

C. Grants
Grants are available only for specific circumstances, up to 15% to a maximum:

Of $500,000 if your company has fewer than 100 employees and is based in rural Ontario (population of your community is less than 100,000 or population density is less than 100 people per square kilometre)
Of $1,500,000 for strategic projects that are foreign direct investments or from companies competing against other jurisdictions (in limited circumstances)

D. Restrictions
You are not allowed to combine (or “stack”) Southwestern Ontario Development funding with other provincial programs.

Community economic development projects

A. Funding amount
Up to 50% of eligible project costs for a maximum grant of up to $1.5 million.

B. Restrictions
You are not allowed to combine (or “stack”) Southwestern Ontario Development funding with other provincial programs.

Complementary services and support

Complementary Services and Supports are available when you submit a complete application to the Eastern Ontario Development Fund or Southwestern Ontario Development Fund through the Regional Development Program. These services are available for the duration of your project regardless of the funding outcome. Services will be coordinated by working with partner ministries until they are delivered, closed-out or finalized.

Business projects
Businesses may be eligible for other assistance related to advisory services, assistance with environmental compliance approvals, assistance in accessing skills and talent, and information related to available tax credits.

Community economic development projects
Applicants may be eligible for other assistance related to advisory services and navigation support for land-use planning and workforce development.

Application Deadline:

Submission Period: March 19, 2025 – May 21, 2025
Notification Date: August 14, 2025

For more information, visit https://www.ontario.ca/page/southwestern-ontario-development-fund

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