Waterloo Region & Guelph

LoanFederal program

FedDev Ontario Funding for Businesses

FedDev Ontario lends interest-free, repayable funding to established businesses in southern Ontario for growth projects, such as new products, better productivity or new markets. You pay it back, usually starting a year after the project ends. It's aimed at businesses with at least 5 employees and 3 years in business.

Amount
Normally $125,000 to $10 million per project, up to 50% of eligible costs
Status
Year-roundFedDev Ontario says it is accepting applications. No deadline is listed.
Type
Repayable, interest-free contribution (up to 50%)
Run by
Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
Where
All of Ontario
Checked on
Nov 13, 2026

Who it's for

  • For-profit growing and established businesses, co-operatives and Indigenous businesses
  • Located and operating in southern Ontario when you apply
  • 5 to 500 full-time equivalent employees
  • Incorporated and registered in Canada or Ontario for at least 3 years

Not for

  • Basic and applied research and development
  • Buying land and buildings
  • Refinancing existing debt

What it covers

  • New costs essential to the project, such as labour, expertise and equipment
  • Developing, selling or producing new products, processes or services
  • Improving productivity, capacity and competitiveness
  • Expanding business lines to reach new markets or customers

How to apply

  1. Read the application guide.
  2. Gather the required documents: 2 years of financial statements plus the latest interim, 3 to 5 year projections, incorporation documents, staff bios, a company structure diagram, a work plan and a breakdown of jobs.
  3. Download the Application for Funding (For-Profit Applicants) on a computer and fill it in with Adobe Acrobat Reader.
  4. Attach your documents and submit. Keep the confirmation.

Good to know

  • This is repaid. Repayment normally starts 1 year after the project ends, and there's no penalty for paying early.
  • You cover the rest of the costs. Projects where FedDev's share is under 50% get preference.
  • Total government help can't go over 75% of eligible non-capital costs or 50% of eligible capital costs.
  • If approved, you have 30 calendar days to confirm your other funding and sign the agreement.
  • Only one application with FedDev Ontario at a time. Projects usually run 1 to 3 years.
  • FedDev Ontario's service area lists 37 census divisions, including Waterloo and Wellington.

Questions

Is Waterloo Region in southern Ontario for FedDev?

Yes. FedDev Ontario's funding page lists 37 census divisions in its service area, and Waterloo and Wellington are both on the list.

Is this a grant?

No. It's interest-free and unconditionally repayable. Repayment normally starts 1 year after the project is finished.

Can a business with 2 employees apply?

Not under this program. The official page says businesses need at least 5 full-time employees and no more than 500.

Related programs

Open, closes Jan 19, 2027Mixed

Indigenous Economic Development Fund

Not stated on the main page. The Economic Diversification Grant guide says up to $100,000 per fiscal year per applicant.

Government of Ontario (Ministry of Indigenous Affairs and First Nations Economic Reconciliation)All of Ontario

Open, closes Jan 21, 2027Loan

Southwestern Ontario Development Fund (SWODF)

Up to 15% of eligible project costs. Loans up to $5 million, interest-free during the project period (up to 4 years), with up to 30% (max $500,000) forgivable if targets are met. Grants only in limited cases: up to $500,000 for small rural firms, or $1.5 million for strategic projects.

Government of Ontario (Ministry of Economic Development, Job Creation and Trade)All of Ontario