Rural Economic Development (RED) Program
What is it?
A financial support program to help rural communities thrive and
grow. It supports projects -including food processing projects -
that remove barriers to community development and economic growth.
Under RED, "rural communities" include all of Ontario
with the exception of the Greater Toronto Area (GTA) and eight large
urban areas.
However, the program does have a fairly broad definition of "rural"
- so even communities with fewer than 100,000 people that are located
within the GTA - for example, the town of Newmarket - are considered
rural. It's recommended that you check the RED website (listed below)
or speak with one of the program's advisors to determine whether
the community you are in qualifies as "rural" under the
RED program.
But your company does not have to be located in
"rural" Ontario as long as your project has strong benefits
to rural Ontario - for example, by raising employee skill levels,
creating jobs, investment, or innovation in a rural area.
The priorities for the RED program are:
- Support the Food Processing Sector
- Community Revitalization
- Improve Access to Skills Training and Enhancement
RED Program Objectives:
- Diversified business climate in rural Ontario
- Strategic and coordinated approach for rural development projects
- Creation of alliances or partnerships and increased quality
of participation of rural stakeholders. Eligible clients include
partnerships between individuals, businesses, community organizations
and municipalities
- Development of information, tools and resources to enhance rural
economic development
The program contributes to:
- Skills development and enhanced opportunities
- Sector internship initiatives
- Access to skills enhancement opportunities in remote areas
- Rural economic development training initiatives (municipal
and community capacity for economic development)
- Rural skills through innovation
- Revitalized communities
- New community development tools
- Sustainable rural economies
- Improved business opportunities
What is the benefit to my company?
Typically, you could receive up to a 50% grant to reimburse costs
that are actual cash outlays to third parties, which you wouldn't
otherwise incur, such as:
- Marketing and promotional costs
- Professional fees (legal, architectural, accounting)
- Travel costs
- Studies
- Consultants/sub-contractor fees
- Equipment (Research & Development)
- Internship funding for youth and displaced workers
- Skills upgrading - needs assessment training labour force identification
and screening
- Minor capital including engineering, architectural and renovations
- Skills development
- Food processing equipment and some capital cost
Skills Development projects are classified in two ways:
- Direct, specialized training that is delivered by a third party
(e.g. colleges can provide training if they are not a partner
to the application). Eligible training costs can include translation
and curriculum development.
- In-house training that supports an internship. Employers can
receive up to $1,500 for each intern to help offset their salary
and in-house training costs.
Skills Development projects can include upgrading
the skills of your existing staff.
Who qualifies?
- Individual food businesses are eligible to apply as sole applicants;
however letters of support are encouraged.
- Partnerships/strategic alliances between any combination of
individuals, businesses, community organizations (including not-for-profit)
and municipalities, with an arm's length relationship from each
other.
- All applicants must share in the risks of the project, invest
in the project, and have a vested interest in completing the project.
While not all partners must invest financially - they can contribute
through "in kind" contributions -- the strength of the
partnership and project is measured by the investment made by
partners.
***The strength of your proposal is critical. A
project could technically meet the criteria, but not be a "strong"
proposal. For example, the partnership may be rated as "weak"
when one partner is taking on all or most of the risk.
For Example….
- A confectionery company qualified for RED funding to implement
an effective employee recruitment strategy for its plant start-up.
The project includes comprehensive training so employees can operate
sophisticated equipment safely and efficiently, and translation
of manuals and other documents. It also includes a market study
which involves developing test marketing and promotional materials
to help evaluate the business case for moving more production
lines to Ontario.
- One Region in Ontario received RED funding to create an innovation
and competitiveness strategy for its manufacturers. The goal is
to stabilize the sector by providing a skilled workforce that
is up-to-date with technology so manufacturers can increase productivity
and competitiveness. Four separate, but linked activities include:
career information, workplace learning and performance-retooling
for the existing workforce, an internship program, and milling
technology expertise.
How do I apply?
The application process for the Rural Economic Development Program
is as follows:
An Optional Pre-proposal:
Whereby applicants submit a brief description of their proposed
project and receive feedback on the fit of their proposed project
with the program criteria.
Full Application:
Whereby applicants provide a full description of their project
for assessment and approval.
Project approval will be based on a fully developed application
that must include a clear demonstration of the need for the project
(including the economic barrier it will assist in overcoming); a
sound financial plan, including satisfactory assessment of the applicants'
financial viability, and demonstrated project feasibility; the economic
development potential of the project and specific outcomes and performance
measures.
Pre-proposals and full applications are accepted on an on-going
basis and may be submitted either in hard copy (one unbound copy)
or electronically by mail to the RED program. Allow up to eight
weeks for the review of your application prior to the approvals
process, which may require additional time.
Please note a copy of the application will be appended to the Final
Agreement.
Where can I find more information?
Rural Economic
Development Program
Ontario Ministry of Agriculture, Food and Rural Affairs
1 Stone Road West, 4 NW
Guelph ON N1G 4Y2
Tel: 1-888-588-4111
Fax: 519-826-4336
Email:
red.omafra@ontario.ca
