Prime Minister announces support for Small Businesses in Southern Ontario

October 15, 2010

VAUGHAN, ONTARIO – Prime Minister Stephen Harper today announced the launch of a new business innovation program that will help start-up businesses in southern Ontario create new jobs and gain a competitive edge in today’s modern economy.  The Prime Minister was accompanied by Gary Goodyear, Minister of State (Science & Technology and the Federal Economic Development Agency for Southern Ontario), and Peter Kent, Minister of State (Foreign Affairs – Americas).
 
“Our Government is committed to creating jobs and making Canada’s economy more robust, diversified and competitive,” said Prime Minister Harper.  “This program will provide start-up businesses in Ontario with the tools they need to attract investment capital, get new products to market and generate wealth and jobs.”
 
The Investing in Business Innovation program is based on direct feedback from business leaders, academics and community leaders from across Southern Ontario who suggested the Government take action to address funding challenges for emerging businesses.  It is supported through FedDev Ontario’s Southern Ontario Development Program.  
 
The program will encourage greater collaboration between entrepreneurs and investors, provide improved access to financing for start-up businesses, boost private sector investment in start-up businesses, and help accelerate the research and development of new products and ideas and bring them to the marketplace.
 
The Harper Government created FedDev Ontario in 2009 as part of Canada’s Economic Action Plan.   FedDev Ontario invests in innovation, research and development, skills and training and supports initiatives which increase economic productivity in southern Ontario.
 
Since July 2009, Canada’s Economic Action Plan has contributed to the creation of more than 420,000 net new jobs in the Canadian economy.  Since last May, more than 211,000 new jobs have been created in Ontario.
 


Backgrounder
 
CANADA’S ECONOMIC ACTION PLAN
 
INVESTING IN BUSINESS INNOVATION PROGRAM
 
The Harper Government is committed to creating jobs and making Canada’s economy more robust, diversified and competitive.  The Government seeks to provide Canadian businesses with the tools and advantages they need to prosper and create jobs and economic growth in today’s modern, knowledge-based economy.
 
In keeping with these objectives, the Government will allocate up to $190 million over the next four years to FedDev’s Investing in Business Innovation program, which will help start-up businesses in the region thrive and grow.
 
Investing in Business Innovation is a direct result of feedback from business leaders, academics and community leaders from across southern Ontario, who suggested the Government address funding gaps for emerging businesses.
 
The program will:

• Provide improved access to financing for start-up businesses:  Start-up businesses (50 employees or less) are eligible to apply for up to $1 million in repayable funding if they have funding commitments from accredited angel or registered venture capital investors.
• Boost private sector investment in start-up businesses: Not-for-profit angel investor networks are eligible to apply for one-time non-repayable funding of up to $50,000 to support outreach and promotion activities. An angel investor network must be located in southern Ontario, registered with the National Angel Organization - Ontario or another reputable industry association, and planning to undertake defined investment attraction activities. Organizations representing southern Ontario angel investor networks are eligible to receive up to $2 million to help attract new investors and encourage the growth of investment funds.
• Help accelerate the research and development of new products and ideas and bring them to the marketplace:  The program will help start-up businesses bring new services, processes and practices to consumers through increased private sector investment.

 
For more information, please refer to the Program Guidelines available on the web site at www.feddevontario.gc.ca.