First Step Announced in Government's Transformation of Business Supports
St. Thomas, November 13, 2019 - The Ontario government is launching the first part
of its commitment to transform business supports to deliver value for money for
taxpayers and create sustainable opportunities for businesses and communities in
eastern and southwestern Ontario.
Last week, Vic Fedeli, Minister of Economic Development, Job Creation and Trade,
introduced the Regional Development Program, which will invest more than $100 million
over four years while taking a new approach to supporting business growth in eastern
and southwestern Ontario communities.
Under the program, businesses can get financial support through the Eastern Ontario
Development Fund (EODF) and the Southwestern Ontario Development Fund (SWODF) and
access to a range of complementary services and supports. As well, there is a clear
60-business day service commitment for when an applicant is notified of a funding
decision, and on eligibility to receive additional complementary supports and services,
so that applicants can plan their investments and know when to expect a decision.
"Our government made a clear commitment to review business supports with a view
towards balancing economic growth and jobs with delivering value for money for taxpayers,"
said Minister Fedeli. "The government listened to stakeholders and regional leaders
about what is important to them to support regional priorities and challenges. As
a result, we are introducing the Regional Development Program for eastern and southwestern
Ontario to help companies and regions invest, grow and attract talent. This is a
balanced, sustainable and reasonable approach to supporting businesses and job creators."
"This investment is another example of our government's continued commitment to
supporting regional and rural communities in Ontario," said MPP Jeff Yurek. "I know
businesses in Elgin-Middlesex-London and in other parts of southwestern and eastern
Ontario are going to benefit from this important program which will see growth,
job creation and economic opportunity for years to come."
The Regional Development Program is part of the government's business supports transformation
initiative, one of five key recently announced priority Smart Initiatives. These
are large-scale, multi-phased projects to build smarter government and transform
how the public sector delivers services and achieve better outcomes for businesses
The new program retains many of the successful elements of the existing EODF and
SWODF and includes some critical changes to support job creators. They include:
- Introducing a coordinated government-wide approach offering complementary services
to support business growth.
- Making it easier for small- and medium-sized businesses to qualify by reducing the
job creation threshold from 10 to five.
- Shifting to performance-based loans as a smarter way to support businesses and ensure
fiscal sustainability, while continuing grants for small businesses in rural communities
to help them grow and expand.
- Expanding financial support to eligible municipalities, industry groups and not-for-profits
for projects that could lead to long-term regional sustainability and advance local
- Introducing a new project assessment process that takes into account regional impact
and directs funding to communities that will benefit the most.
- Simplifying applications through system improvements which will save time and resources.
The complementary services and supports will provide businesses with coordinated
access to a range of government programs and tools that can best meet their needs
to succeed. These include advisory services, assistance with compliance and approvals,
accessing skills and training supports, and information on tax credits.
“Over the last several years, the Southwestern Ontario Development Fund (SWODF)
has been a key marketing piece to attract investment to our region, both internally
and externally, and I couldn't be more pleased to see it reinstated in a way that
simplifies and shortens the process for businesses,” said Sean Dyke, CEO, St. Thomas
Economic Development Corporation. “The payback on incentives for growth is almost
immediate and I can't wait to see what new opportunities this funding will offer
to our business community.”
“This announcement is exciting news for businesses in Elgin County,” said Alan Smith,
General Manager Economic Development, County of Elgin. “The support from the Southwestern
Ontario Development Fund will help grow local business by providing for investment
in technology, productivity, and exploration into new markets; which will help create
jobs and strengthen our local economy.”
The Regional Development Program is part of Ontario's plan to build smarter government
and protect our core programs and services. Our goal is to ensure sustainability,
now and for future generations.
- In the 2019 Budget, the government introduced the Open for Jobs Blueprint to help
transform Ontario's business support programs.
- Business supports transformation put into action recommendations of the EY Canada
Line-by-Line Review and the Planning for Prosperity consultations.
- There are over 470,000 small businesses (with 1-99 employees) in Ontario, accounting
for almost 98 per cent of all businesses in the province.
- According to Stokes Economics, eastern and southwestern Ontario accounted for over
$184 billion or more than 23 per cent of Ontario's economy in 2018.
- Since June 2018, employment in Ontario has risen by 272,400.