Question Period Note: Grants and Contributions

Grants and Contributions

• The Government of Canada is committed to supporting our communities by creating good jobs, promoting innovation, and growing our economy.

• The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) makes investments that are aligned with the Government’s priorities and the mandate given to me by the Prime Minister.

• FedDev Ontario assesses each application on the basis of priorities, program funding, and potential economic benefits to the region.

• The Agency delivers regional and national programs that are tailored to southern Ontario’s strengths and can be leveraged to invest in opportunities to promote business growth, innovation, community development and diversification.

• FedDev Ontario uses an easy-to-use application process for its regional programs so applicants can apply through two simplified streams: one for businesses and another for organizations that help businesses grow. This client-centric process enables the Agency to quickly respond to economic opportunities, and tailor investments to support a clean, inclusive and globally competitive southern Ontario. The first intake closed on November 7, 2023. The next intake will open in winter 2024.

• The Agency undertakes a thorough due diligence process prior to making investment decisions. It assesses project applications against a number of factors, including operational, financial and market risks. Projects are considered based on their economic benefits to the region and country.

• Approved projects are actively monitored. Recipients are required to report on activities and outcomes, at least annually, as projects are being implemented. Payments are also made on a re-imbursement basis to allow an additional control point for validating the eligibility of precise project expenditures and activities.

• The contribution agreements for individual projects contain provisions that establish the conditions for default and the range of remedies available to the Agency in this circumstance. The contribution agreements also contain several provisions that require a client seek the Agency’s consent prior to undertaking specific activities (e.g., sale/transfer of control of an asset funded by the project).

• Approved projects are actively and regularly monitored by Agency officials to ensure that stated outcomes are being achieved and that funds are being used for their intended purposes.

• To mitigate against risk, payments are made to recipients as their costs are incurred to control against unauthorized activities or expenditures.