Overview

Ontario’s RED program provides cost-share funding to support activities that create strong rural communities in Ontario and opens doors to rural economic development.

This targeted intake of the Rural Economic Development (RED) program is focused towards regional economic development with short-term response projects that are regional in scope or focus and identified in existing economic plans or strategies.

These guidelines are for a one-time targeted RED intake. Read carefully as the criteria are not the same as the regular RED program and all costs must be incurred before March 31, 2021.

Projects will not be extended beyond this date.

Projects must meet the following criteria:

  • benefit rural Ontario
  • have outcomes that align with at least one of the following RED priorities:
    • jobs created or retained
    • businesses attracted, retained or expanded
    • investment attracted or retained
    • enhanced strategic economic infrastructure
    • regional partnerships that drive growth
  • have expected outcomes and impacts beyond one county, region, district or Indigenous community
  • be identified in an existing economic plan or strategy

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

Contact us at 1-877-424-1300 or ag.info.omafra@ontario.ca to connect with a Regional Economic Development Advisor who can assist with your application.

Refer to the glossary for definitions and terms.

Who is eligible

This targeted RED intake is for not-for-profit regional organizations or upper-tier municipalities with economic development projects that support multiple counties/regions/districts/Indigenous communities or the province.

Applicants must follow all requirements of law.

The applicant is the primary contact with the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) and receives all payments. The applicant must sign a contribution agreement. Only one application per applicant can be submitted for this intake, although one application can include multiple activities.

Activity types

The maximum provincial cost-share for eligible costs is 70%, to a maximum of $75,000 per project.

The majority of costs for projects must be non-capital.

The project can include one or more of the following activities. Each activity type(s) being applied for, must be identified.

Activity typeDescriptionExample activities
Entrepreneurship / business successionProjects that support business start-up or succession in a region
  • Business succession support (e.g., connecting buyers and retiring business owners)
Business retention and expansionProjects that proactively engage the business community to identify and implement actions that address barriers to business growth
Attraction and retention of workers / immigrants / youthProjects that implement strategies for attracting and retaining people across a broad region to address labour challenges
  • Workforce-oriented policy/regulatory improvements
  • Destination marketing
  • Network development (service providers / businesses)
Skills training and developmentProjects that implement strategies focused on identified regional skill requirements (e.g. robotics, carpentry, lean manufacturing)
  • Sector-based training
  • Employee training
  • Youth training
  • Intern/apprentice matching system
Collaborative marketing and outreachProjects that implement marketing or promotional activities outlined in an existing marketing or communications plan that will have an impact across sectors, value chains, or multiple communities in a region
  • Regional promotional campaigns (e.g. foreign and domestic investment attraction, tourism)
  • Virtual regional events (e.g. innovation)
Sector/value chain developmentProjects that implement strategies to strengthen and coordinate collaboration across sectors or value chains spanning multiple regions
  • Buyer-Seller forums
  • Network development (e.g. virtual events, coordination)
  • Specialized business training
  • Identify and inventory existing assets and businesses

What is eligible

Eligible costs must be:

  • necessary to complete the project
  • 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

Eligible costs include:

  • new hires
    • wages and mandatory employer related costs (MERCs) for new hires to work 100% on project-related activities
    • other costs for new hires who work 100% on project-related activities, including:
      • laptops, computers, software
      • travel in Ontario, specifically 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)
  • project management
    • project-related professional fees, including legal, architectural, engineering, environmental, surveys, management, or accounting
  • technology
    • project-related computer, communications and audio/video equipment (for example, camera, laptop)
    • project-related software (for example, customer relationship management, survey, design, virtual meeting applications)
  • marketing or promotion-related costs, including media, promotions, branding/design, collateral and tools, outreach (for example, an awareness program)
  • third-party project-related administrative costs, including printing, postage, or data
  • training development and speaker fees (not including travel)

You are not eligible to apply if you are:

  • a lower-tier and single tier municipality
  • a not-for-profit organization (except those identified above)
  • a Local Services Board
  • a Regional Tourism Organization
  • a Workforce Planning Board
  • a business
  • an individual
  • a research institutions or organizations whose core business or primary activity is research and development (for example, universities)
  • an organization that is not incorporated

What is ineligible

Ineligible projects

The following projects are ineligible:

  • projects receiving other provincial funding
  • projects that do not meet the eligibility criteria
  • academic research
  • marketing and outreach projects that do not have an impact across sectors, value chains, or multiple communities in a region
  • debt restructuring, fundraising or financing (for example, re-granting RED funds)
  • projects that influence or lobby any level of government
  • capital projects (for example​, new building construction, roads, bridges, paved walkways, water/wastewater treatment facilities, utility distribution, broadband)
  • projects that primarily benefit a business

The following projects are ineligible if the primary purpose is to:

  • become compliant with current Requirements of Law (for example, AODA)
  • develop strategic plans (for example, economic development, feasibility, marketing, research or evaluation plans)
  • pay for only third-party consulting costs for project management
  • host annual preplanned events (for example, conferences)

Ineligible costs

The following costs are ineligible under the RED program:

  • any cost not specifically required for the execution of the selected project
  • costs incurred prior to the effective date or after the project completion date set out in the contribution agreement
  • 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
  • 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
  • giveaway items (for example, branded pens, buttons, notepads, etc.)
  • capital costs, including:
    • construction and rehabilitation of buildings, road/highway bridges, structures (mobile and fixed), gateway signs and major infrastructure (for example,​​​​​ water/wastewater systems, storm water management, transportation facilities, paved surfaces, roads, bridges and streetlights)
    • additions to buildings, teardowns or rebuilds
    • exterior of buildings (for example, roofs, walls, siding)
    • 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
  • minor capital costs including:
    • Streetscaping and landscaping such as wayfinding signage, decorative lighting, banners, murals, street furniture, interpretive elements, public art, trees, and accessibility equipment outside a building
  • mileage and meal allowance above what is in the province’s Travel, Meal and Hospitality Directive
  • normal business practices, including:
    • equipment and machinery
    • furniture and appliances 
    • 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
    • phones, internet and networks
    • uniforms
  • per diems
  • permits and approvals
  • preparing an application for any program, including the RED program
  • 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)

Submitting an application

Final check before submitting an application

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

Mandatory

  • a completed targeted intake RED program application
  • constituting documents, such as articles of incorporation or other similar evidence of legal status
  • strategic or recovery plan
  • three years of financial statements or a letter to that effect

Application process

Request the application form from the Agricultural Information Contact Centre through ag.info.omafra@ontario.ca or by calling 1-877-424-1300.

The Agricultural Information Contact Centre will determine whether your organization and project is eligible. If you are eligible, the application will be sent to you via email.

Selection process

All applications are evaluated based only on the information submitted and will not be considered if they are incomplete. Applications are to be assessed against set program eligibility criteria outlined in these guidelines.

Applications 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 and to set the amount of funding that will be provided, even if all requirements are met.

After project approval

Notifying applicants with decision

Applicants will be notified as funding decisions are reached. This will be within six weeks from the posted intake closure date; however, timing may vary.

Next steps after approval

If you are successful, you will receive a letter of approval. You 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 on the Transfer Payment Ontario (TPON) 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.

Project completion date

All costs must be incurred before March 31, 2021. Projects will not be extended beyond that 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 and the costs incurred by the province in getting the funds back.

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% 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 entity identified as the applicant on the RED program application form. The applicant will enter into a contribution agreement with the Province of Ontario and has joint and several liability for any project that is approved.
Arm’s-length
means an entity (applicant or co-applicant) that is not related, as set out in the Income Tax Act.
Contribution Agreement
The legal 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, which is set out in the contribution agreement.
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
When a good or service has been received or completed.
Local Services Board
A Local Services Board established under the Northern Services Boards Act, 1990.
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 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 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.
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 Requirement of Law.
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

The Rural Economic Development Program is an application-based program (OIC 201/2011). In the event of conflict between these guidelines, the application and the contribution agreement, the Contribution Agreement will supersede and prevail.

Eligibility requirements

You must also comply with the following requirements:

  • have the authority to enter into a contribution agreement and be jointly and severally responsible 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, you must cooperate in any audits related to any funding received under the RED​​​​​​​ program