Overview

The new targeted intake of the Rural Economic Development (RED) program will support projects that implement strategies to attract and retain workers, create jobs and provide funding for eligible:

  • municipalities
  • not-for-profit organizations (e.g. Chambers of Commerce and business development organizations)
  • Indigenous communities
  • Local Service Boards

The RED program provides cost-share funding to support activities that create strong rural communities in Ontario and opens doors to rural economic development by funding projects that:

  • better position rural communities to attract and retain jobs and investment
  • address barriers to economic development
  • enhance economic growth and build community capacity for economic development
  • help to diversify and grow local economies

These guidelines are for a one-time, targeted RED program intake and are not the same as those for other intakes for the regular RED program. Preference under this intake will be given to projects that can be completed before December 31, 2023.

The RED program is application-based and projects are selected using a competitive process. Please read the program guidelines before completing your application form.

Projects need to meet the following criteria:

  • benefit rural Ontario
  • have tangible outcomes
  • demonstrate regional, sector or value chain impacts

All applications are assessed based on these guidelines. These guidelines are subject to change without notice.

Contact us

If you have questions or need help with your application, contact us by:

Who is eligible

You are eligible to apply if you are:

  • a municipality
  • an incorporated not-for-profit business or organization
  • an Ontario Indigenous community or organization
  • a Local Services Board

If you are eligible, you must also comply with all other requirements of these guidelines.

Agreement and applicant roles

Applicants include the lead applicant and any co-applicants must sign a Contribution Agreement with the ministry. These agreements do not include partners.

Single Lead applicants are eligible to apply, but we encourage you to have Co-applicants or partners. This will make your application stronger.

Due to the competitive nature of the program, we discourage multiple applications from the same lead applicant.

Role

Description

Lead applicant

The lead applicant is the primary contact for the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA). If their project is selected for funding, they sign the contribution agreement, assume joint and several liability for the project, receive all payments and submit all invoices.

Co-applicant

Co-applicants are directly engaged in the project and assume the same level of responsibility for the success of the project as the lead applicant. Co-applicants must meet the same eligibility criteria as applicants and contribute within the necessary financial thresholds or in-kind resources to the project and, if their project is selected for funding, sign the contribution agreement with the ministry. Co-applicants do not directly receive project-related payments or submit project-related claims to OMAFRA. Fill out a form for each Co-applicant.

Partner

Partners contribute financial or in-kind resources to the project. They do not sign the contribution agreement with the ministry.

Organizations or community groups that provide you with a letter of support without committing financial or in-kind support are not considered partners.

Employees of the Ontario Public Service cannot be partners and will not provide letters of support for any application.

Who is not eligible

You are not eligible to apply if you are:

  • a business
  • an individual
  • a research institution or organization whose core business or primary activity is research and development (for example, universities)
  • a not-for-profit organization that is not incorporated

Project types

There are two eligible project types within this intake. You are required to identify if your project type is for:

  • attraction and retention of workers, immigrants and youth
  • redevelopment of vacant and/or under-utilized buildings

Attraction and retention of workers, immigrants and youth

Projects that implement strategies for labour force attraction and retention. Example projects include:

  • collaborative labour attraction marketing campaigns
  • workforce-oriented policy/regulatory improvements
  • career days/events
  • network development (service providers/businesses)
  • intern/apprentice matching system
  • employee-pooling projects

The maximum provincial cost-share funding for eligible costs is 70%, up to a maximum amount of $150,000 per approved project of this type.

All costs for projects of this type must be non-capital costs.

Redevelopment of vacant and/or under-utilized buildings

Projects that include minor capital costs and equipment to redevelop interiors of vacant and or under-utilized buildings to achieve an economic development outcome related to labour force attraction and retention. Example projects could include redeveloping vacant or under-utilized buildings to become a:

  • innovation hub
  • newcomer/youth centre

The maximum provincial cost-share funding for eligible costs is 50%, up to a maximum amount of $250,000 per approved project of this type.

The majority of costs for projects of this type must be minor capital costs.

What is eligible

Eligible costs must be:

  • necessary to complete the project
  • incurred after the project has been approved in writing by OMAFRA and within the period identified in the Contribution Agreement (between the Effective Date and project completion date)
  • incurred in Ontario
  • incurred by following a process that is transparent, fair and promotes the best value for money (prices must be competitive and not more than the fair market value)
  • paid to an arm's length third party

In-kind contributions are not eligible for funding or reimbursement but can be noted on the application to demonstrate a commitment from applicants and partners.

Eligible cost items for all projects

The following are eligible costs:

  • costs of new hires wages and mandatory employer related costs (MERCs) for new hires directly employed by the applicant who work one hundred per cent (100%) of their time on project-related activities
  • other costs for new hires directly employed by the applicant who work 100% of their time on project-related activities, including:
    • laptops, computers, software
    • travel in Ontario, specifically the costs of meals and mileage (in compliance with the province's Travel, Meal and Hospitality Directive)
    • portable internet services, cell phones, cellular network services if travel is required
    • professional development fees (for example conference or workshop registration)
  • professional fees
    • project-related professional fees, including legal, architectural, engineering, environmental, surveys, project management or accounting fees
  • technology
    • project-related computer, communications and audio or video equipment (for example camera, 3D printer or smart boards)
    • project-related software (such as a customer relationship management platform, survey, design or virtual meeting applications)
    • marketing or promotion-related costs, including media, promotions, branding/design, collateral and tools, or outreach awareness programs
  • third-party project-related administrative costs, including printing, postage or data.

Eligible cost items for projects under the attraction and retention of workers / immigrants youth type only

  • workshop and training related materials and supplies costs (not including travel)
  • venue rental fees (dependent on local public health restrictions)

Eligible cost items for projects under the redevelopment of vacant and/or under-utilized buildings type only

  • contractor's fees
  • cost of materials or supplies (for example electrical, plumbing, ventilation, structural, internet/Wi-Fi hardware and finishings) and labour for the redevelopment of the interior or exterior (excluding roofs) of an existing vacant or under-utilized building
  • equipment and machinery costs (for example 3D printer, industrial sewing machine)
  • costs of furniture (internal or external) and major appliances
  • costs of products designed to remove access barriers for persons with physical disabilities (for example ramps, railings, lighting, signage)

What is ineligible

Ineligible projects

The following projects are ineligible for funding under this intake:

  • submissions with incomplete applications
  • projects not directly related to labour force attraction and retention
  • projects receiving any amount of other provincial funding
  • projects that do not meet the eligibility criteria
  • academic research
  • debt restructuring, fundraising, financing or redistributing RED Program funds
  • influencing or lobbying any level of government
  • major capital costs projects (for example, new building construction, roads, bridges, paved walkways, water/wastewater treatment facilities, utility distribution, broadband, playgrounds)
  • marketing and outreach projects that do not have an impact across sectors, value chains, or at least two lower-tier or one single-tier jurisdictional boundary
  • projects that primarily benefit an individual business
  • projects receiving any amount of provincial funding from any other provincial funding program.

The following projects are ineligible for funding if their primary purpose is to:

  • become compliant with current Requirements of Law (for example, Accessibility for Ontarians with Disabilities Act, 2005 (AODA))
  • develop or deliver training or skill development initiatives
  • develop strategic plans (for example, economic development, feasibility, marketing, research or evaluation plans)
  • identify and inventory existing assets (for example, industrial land inventories, business directories)
  • ready a property or asset for immediate or imminent sale

Ineligible costs

The following costs are ineligible for all projects:

  • any cost not specifically required for the successful execution of the approved project
  • costs incurred prior to the effective date or after the project completion date set out in the contribution agreement, if approved
  • activities that influence or lobby any level of government
  • contingencies
  • deposits (prepayments) for expenses that have yet to be fully incurred
  • direct wage subsidies for existing staff or any other staff not working 100% on project related activities, or administrative fees charged by the applicant(s)
  • financing and financing charges, debt restructuring, loan interest payments, and bank fees
  • fundraising
  • honorariums, membership costs
  • hospitality costs, (for example catering, food, refreshments and alcohol)
  • in-kind contributions
  • gifts or incentives
  • major capital costs, including:
    • construction of buildings, construction or rehabilitation of paved, bricked or concrete surfaces, road/highway bridges, structures (mobile and fixed), gateway signs and major infrastructure (for example water/wastewater systems, storm water management, transportation facilities, roads, and streetlights)
    • additions to buildings, teardowns or rebuild of the entire structure
    • purchase and installation of modular facilities
    • infrastructure and equipment costs for airports, seaports, railways, marinas, and commuter/tourist transportation systems
    • site preparation
    • purchase or lease of land, buildings, facilities, and structures
  • mileage and meal allowance above what is in the province's Travel, Meal and Hospitality Directive
  • normal business practices, including:
    • insurance and taxes
    • meetings not directly related to the project
    • office space, utilities, regular or deferred maintenance
    • office supplies, stationary, business cards and promotional items
    • phone, cell phone and internet usage charges
    • uniforms
  • per diems
  • permits and approvals
  • preparing an application for any program, including the RED program
  • preparing claim submissions or reporting requirements for any program, including the RED program
  • promotional items (for example, branded pens, buttons, notepads, etc.)
  • refunds or rebates, including any you are eligible to receive
  • sponsorship of conferences and events
  • taxes, including all Harmonized Sales Tax (HST)
  • travel and meals for consultants and existing staff
  • utilities, power lines, chargers, generation systems, broadband infrastructure, and water or wastewater lines outside of a building
  • vehicles, transportation equipment, material handling equipment (powered and unpowered), and agriculture, construction, mining machinery (for example farm equipment)

Project length, work plan, budget and funding sources

Length of project

Single and multi-year projects are eligible for funding. Preference will be given to projects that can be completed before December 31, 2023 under this intake.

Project work plan and budget

Proposed project work plans and budgets will be assessed based on the level of detail provided, but particularly how the project activities are described and organized.

The proposed project budget must:

  • forecast the eligible costs and activities for each year of the project
  • indicate that costs will be accrued and claimed each year for completed work
  • demonstrate impacts within the first year of the project

Proposed project activities should be broken down into eligible, in-kind and ineligible costs in the application. Please include the following in the application:

  • a detailed explanation of how the project will be successfully completed by filling out the project work plan and budget template on the application form
  • the project work plan should list:
    • each activity required to complete the project (such as conducting public community consultations)
    • the specific eligible items associated with that activity (such as venue rental, printing, marketing or promotions)
    • the estimated cost of the activity
    • the anticipated start and end date of the activity
  • eligible costs must be broken down by calendar quarter and align with the timelines outlined in the project work plan

Funding sources for projects

The applicant(s) must disclose all sources of public funds for the project in the application. Funding from federal government programs (for example, Community Futures Development Corporations) can be used toward proposed project costs, assuming it is permitted under applicable federal programs. Combined federal and RED program funding cannot exceed 90% of the project's eligible costs. Failure to disclose all funding or possible funding sources may result in the termination of the application or contribution agreement.

Projects receiving any amount of provincial funding from any other provincial funding program are not eligible to apply for or receive funding under this RED Program intake. Provincial funding includes but is not limited to funds administered by:

  • provincial ministries
  • Friends of the Greenbelt Foundation
  • Ontario Trillium Foundation
  • Northern Ontario Heritage Fund Corporation
  • Regional Tourism Organizations
  • workforce planning boards

Submitting an application

Only applications with full and complete information will be assessed. Please include the following:

Mandatory

Optional but recommended

We encourage you to include supplemental documentation with your application. This may make your application stronger. Examples include:

  • letters from partners and co-applicants indicating their respective support for the project, including any in-kind contributions to the project, if applicable
  • quotes / estimates to support the project budget
  • feasibility studies, strategic plans, reports, relevant research or anything else that supports the need for the project and anticipated impacts

How to submit an application

Please submit your completed applications, including all supporting documentation and the Co-applicant form (if applicable) via email to RED@ontario.ca.

Deadline: applications will only be accepted until March 7, 2022 at 11:59 p.m. ET.

If your attachments are greater than 10 MB, please send multiple emails and ensure the subject line remains consistent.

Applicants will receive confirmation with an application number within five business days of the receipt of application. If you do not receive confirmation, please contact the Agricultural Information Contact Centre at 1-877-424-1300 or ag.info.omafra@ontario.ca.

Selection process

Once you submit your application and the intake period closes, your application will be assessed based on the following criteria:

Stage 1: eligibility screening

Your application must meet the following basic eligibility criteria in order to move on to Stage 2:

Stage 2: project assessment

Your application will be assessed based on the following criteria.

Assessment criteria

Strong RED program projects identify the following, through the application and supporting documents

Reducing economic barriers: the project reduces economic barriers to economic development related to labour force attraction and retention that have been identified through a previously completed community assessment (for example, BR+E, strategic plan).

  • Specific labour force related economic barriers that will be reduced by the project
  • Labour force related barriers substantiated by supporting documents
  • How project actions will reduce those economic barriers

RED program outcomes: The project addresses one or more of the following RED program outcomes:

  • jobs created or retained at the conclusion of the project
  • investment attracted or retained
  • businesses attracted, retained, and/or expanded
  • enhanced strategic economic infrastructure
  • regional partnerships that drive growth
  • Strong alignment with three or more RED program outcomes that will be addressed by the project
  • Provide detailed description of how actions undertaken through the project will address those outcomes

Project work plan: The project has a detailed work plan listing each activity or key milestone required to complete the project, the specific eligible items associated with that activity, their estimated cost, and the anticipated start and end date of that activity.

  • Preference will be given to projects that will be completed by December 31, 2023
  • Provides a detailed plan that supports the successful completion of the project, including all of the following:
    • detailed description of eligible activities and their estimated cost
    • realistic timelines to complete each activity

Collaboration and regional impacts: Communities or organizations beyond the lead applicant are offering financial or in-kind support for the project. 

The project’s ability to generate impacts in multiple communities, sectors, or across parts of a value chain.

Please note: organizations or community groups that provide a letter of support without committing financial or in-kind support are not considered partners.

  • Demonstrates commitment of financial or in-kind contributions from at least one co-applicant
  • Provides a detailed and well-supported description of how the project will create impacts across multiple communities

Sustainability: the project will contribute to longer-term economic development outcomes after RED program funding ends, through activities like:

  • sustainability plans
  • activities to encourage sustainability (for example, knowledge and technology transfer)
  • Demonstrates significant efforts to encourage longer-term contributions to economic development after RED program funding ends

Project budget: the project budget identifies eligible costs that are reasonable and well-supported.

  • Cost items meet all of the following criteria:
    • eligible and described in sufficient detail
    • reasonable
    • in alignment with the project work plan
  • Substantiated by supporting documentation (for example quotes, proposals)

Project oversight: the project will be managed by organizations and individuals that have experience.

  • Provides details about specific individual(s) who will be leading the project
  • The project lead's experience as it relates to the project
  • Examples of similar projects that were overseen by the project lead

Financial commitment: applicant(s) have made a financial commitment to the project.

  • For the attraction and retention of workers, immigrants and youth projects:
    • financial commitment equal to or greater than 30% of eligible project costs by the applicant(s)
  • For the redevelopment of vacant and/or under-utilized buildings projects:
    • financial commitment equal to or greater than 50% of eligible project costs by the applicant(s)

Financial capacity: all applicants, except for a municipality, are required to provide financial information that demonstrates capacity to implement the project. Information which may be accepted to demonstrate financial capacity includes either:

  • three years of audited financial records and disclosures supplied that indicate each applicant has the financial ability to cash flow the project without difficulty or has a secure source of funding letter from applicant's financial institution confirming financial capacity to cash flow the project in its entirety
  • Information provided demonstrates strong financial capacity to implement the project

Stage 3: approvals

All eligible applications that complete stage 2 will be reviewed by the Rural Economic Development Advisory Panel (REDAP). Panel members have expertise in rural economic development and the agri-food sectors. REDAP will make non-binding recommendations to the Minister of Agriculture, Food and Rural Affairs on funding.

The Minister of Agriculture, Food and Rural Affairs has exclusive discretion to:

  • select or reject any application, even if all requirements are met
  • notwithstanding the limits set out above, set the maximum amount of funding that will be provided for those that are approved

Applicants are not entitled to funding simply by reason of having submitted an application and meeting the eligibility requirements.

After project approval

Notifying applicants with decision

You will be notified in writing as funding decisions are reached, which is usually within three months from the posted intake closure date. However, timing may vary.

Recognition signage

Selected projects in the redevelopment of vacant and/or under-utilized buildings project type will be required to install a permanent sign recognizing the support of the RED Program. You will be notified whether you are required to do so in your letter of approval. You are required to submit the design of the sign to OMAFRA for approval before producing and installing the sign. The province will reimburse 100% up to $100 of the total costs of the design, fabrication and installation of the sign once submitting a claim.

Next steps after approval

If you are successful, you will receive a letter of approval. You and all co-applicants (if applicable) are required to sign a contribution agreement. All parties are required to sign the contribution agreement prior to receiving any funds.

You will be required to register in the Government of Ontario's Transfer Payment Common Registration (TPCR) system. Instructions will be provided once your project is approved.

Submitting claims

Claims are submitted through an online portal. Instructions will be provided on how to receive access once your project is approved. In order for your claim to be processed, all submitted expenses must be eligible, incurred, and paid in full. You will also be required to provide a progress update on the status of your project every time you submit a claim.

Claims must be submitted by the Lead Applicant only.

If you have not incurred all the funds allocated within a specific fiscal year (between April 1 and March 31) as identified in your contribution agreement, you are at risk of losing those funds, unless the province agrees to an amendment to your contribution agreement.

Project completion date

Your project must be completed within the timeframe identified in the contribution agreement. If you do not complete your project by the project completion date, you may be required to repay any and all funds provided to you, including interest on them, as well as the costs incurred by the province to recover the funds and interest.

Final report

In order to close your project, you are required to submit a final report by the deadline stated in the contribution agreement. There is a 10 per cent holdback of your project reimbursement until your final report is received and accepted by OMAFRA, and all other requirements have been met.

Glossary

Applicant: means the organization identified as the applicant and includes the lead applicant and any co-applicants.

  • Lead applicant: means the entity identified as the lead applicant on the RED program application form. The lead applicant will enter into a contribution agreement with the Province of Ontario and will jointly and severally liable for all recipient's obligations for a project that is approved.
  • Co-applicant: means an entity identified as the co-applicant on the RED program application form. The co-applicant must meet the same eligibility requirements as the lead applicant and enter into a contribution agreement with the Province of Ontario. The co-applicant will be jointly and severally liable for all recipients' obligations for a project that is approved for funding.

Arm's-length: means an entity (applicant or co-applicant) that is not related, as determined under the Income Tax Act (Canada).

Community: locations defined by lower-tier, single-tier and first nations jurisdictional boundaries.

Contribution Agreement: The legal conditional funding contract between the applicant(s) and the Province of Ontario.

Cost-share funding percentage: The percentage the province will pay towards the project.

Economic development: The process of fostering an environment that results in the creation of wealth and well-being for communities.

Effective date: The date the Minister of Agriculture, Food and Rural Affairs approved your project, and which is set out in the contribution agreement.

Equipment and furniture: equipment/furnishings (internal or exterior to the building) necessary for the ongoing execution of the project, and not used for construction purposes.

Funds: The money the province provides to applicant(s) to complete the project.

In-kind contributions: Non-financial goods and services provided to support the project. For example, salaries, use of equipment, materials and supplies, or use of facilities.

Incurred: In relation to costs, means a cost that a recipient has become liable for, regardless whether actual payment has occurred.

Labour force: Employed and unemployed persons actively seeking work in a defined geographic area.

Local Services Board: A Local Services Board established under the Northern Services Boards Act, 1990.

Major capital costs: Costs for significant infrastructure, including:

  • transportation infrastructure
  • construction and rehabilitation of buildings
  • construction or rehabilitation of paved, bricked or concrete surfaces, bridges, structures (mobile and fixed)
  • gateway signs;
  • additions to buildings, teardowns or rebuilds
  • purchase and installation of modular facilities
  • site preparation or purchase or lease of land, buildings, facilities and structures

Minor capital costs: Costs that include contractor's fees; costs of materials or supplies and labour; redevelopment of the interior or exterior (excluding roofs) of an existing vacant or under-utilized building.

Municipality: A geographic area whose inhabitants are incorporated as described in the Municipal Act, 2001, S.O. 2001, c. 25.

Not-for-profit: A legal entity that is a:

  • registered charity as defined in the Income Tax Act (Canada) and that is in good standing with the Canada Revenue Agency, or
  • corporation incorporated as a not-for-profit corporation or similar entity under an act of Canada or a province or territory of Canada and that is in good standing under its incorporating act.

OMAFRA: Ontario Ministry of Agriculture, Food and Rural Affairs.

Ontario Indigenous community or organization: means a First Nations community in Ontario; Métis community in Ontario; Political Territorial organizations in Ontario; Tribal Councils in Ontario; or Métis organizations in Ontario that apply on behalf of and with the support of the communities they represent, and that have a substantiated record of representing those communities.

Partner: an organization that contributes financial or in-kind resources to Project completion.

Project: A set of activities undertaken to achieve specific outcomes as defined in the program application.

Requirements of Law: means all applicable requirements of law as may be set out in statutes, regulations, by-laws, codes, rules, ordinances, official plans, approvals, permits, licenses, authorizations, decrees, injunctions, orders and declarations, or any other similar instrument.

Rural Ontario: means all Statistics Canada census subdivisions (including lower-tier and single-tier municipalities) that either have a population of less than 100,000 people, or have a population density of 100 people per square kilometre or less, as identified in the most recent Statistics Canada Census of Canadian Population. Refer to the RED program “Rural and Urban Areas” map.

Legal

Confidentiality

Application forms and supporting material, claims and reports submitted to the Province of Ontario are subject to the Freedom of Information and Protection of Privacy Act, 1990 (FIPPA). Any information intended to be submitted in confidence should be clearly marked “confidential” by the applicant. Nevertheless, information supplied to the RED program may be disclosed by OMAFRA where it is obligated to do so under FIPPA or by an order of a court, tribunal or pursuant to a legal proceeding. Information contained in an application to the RED program may also be disclosed by OMAFRA to verify compliance with other provincial and federal funding initiatives administered by OMAFRA, other provincial or federal ministries, or a third-party delivery agent, to ensure that there is no duplication of funding. Inquiries about confidentiality should be directed to the RED program.

Order in Council & conflict resolution

The Rural Economic Development program is an application-based program that was established by Order in Council 201/2011. In the event of conflict, error or omission between these guidelines, the application form, the Contribution Agreement and the Order in Council, these guidelines will prevail over the application form; the Contribution Agreement will prevail over the guidelines, and the Order in Council will prevail over the Contribution Agreement.

Eligibility requirements

You and your Co-applicant(s) or Partner(s) must also comply with the following requirements:

  • have the capacity and authority to enter into a contribution agreement and take on joint and several liability for the project
  • be in compliance with all Requirements of Law and agree to remain in compliance throughout your project if approved

If your project is approved, cooperate in any audits related to any funding received under the RED program.