Table of Contents
- The Rural Economic Development Program
1. The Rural Economic Development Program
The Rural Economic Development (RED) Program is
a community development initiative that helps rural communities
remove barriers to community development and economic growth
and develop the tools and flexibility they need to become strong
rural communities. Through the program, rural residents, business
people and municipal leaders can co-ordinate their activities,
resources and expertise to work towards common community development
goals. The coordinated actions undertaken as a result help to
build revitalized rural communities that work better for the
people who live in them.
The objectives of the RED Program are to create
diversified business climates in rural Ontario; the creation
and retention of long-term jobs; a strategic and coordinated
local and regional approach for economic development, the creation
of alliances and partnerships; and the development of information,
tools and resources to enhance rural economic development.
In 2003, the RED Program was focused to include
three priorities:
- Community (downtown) revitalization;
- Improved access to health-care services; and
- Skills training and enhancement.
Since its inception in 2001, the RED Program has assisted
numerous communities and sectors in rural Ontario to overcome
barriers to economic development and growth. It can help yours.
Contact Information
Rural Economic Development (RED) Program
Ontario Ministry of Agriculture, Food and Rural Affairs
1 Stone Road West, 4 NW
Guelph, Ontario N1G 4Y2
Tel: 1-888-588-4111
Fax: 519-826-4336
Email: red.omafra@ontario.ca
Website: www.ontario.ca/rural
Who may apply?
Eligible applicants include 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. Individuals or
individual businesses are not eligible to apply as sole applicants.
Applicants must demonstrate their ability to complete the
project and carry on needed work after the project is finished.
Applicants must establish and present the positive impact
the project will have on the rural economy.
Eligible projects must accrue benefits to rural Ontario.
For the purposes of the RED Program, rural encompasses all
of Ontario with the exception of the Greater Toronto Area
(GTA) and eight large urban areas. These large urban areas
are the cities of Hamilton, Ottawa, Greater Sudbury, Thunder
Bay, London and Windsor, and the regions of Waterloo and Niagara.
However, communities and lower tier municipalities with a
population of less than 100,000 in the GTA or in the eight
large urban areas will be
considered rural.
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Funding
Projects are cost-shared with the provincial government investing
up to 50 per cent of the project's eligible cost in most cases.
Funding may be available at up to 90 per cent of the total eligible
project costs, under special circumstances. In-kind contributions
are not eligible for cost sharing. Payments are based upon the
receipt of paid eligible invoices along with proof of payments.
Examples of eligible expenditures include, but are not limited
to:
- Development and distribution of marketing and promotional
materials;
- Skill enhancement costs (specialized training);
- Consultants, project management and/or sub-contractor
fees;
- Travel costs incurred by applicants/contractors;
- Architectural, engineering, legal, accounting or other
professional fees;
- Minor capital costs including renovations or specialized
equipment/furnishings necessary for the project;
- Feasibility and business plan preparation;
- Software and other communication technology; and
- Bank fees and charges for the project.
Ineligible expenditures include, but are not limited to:
- Land, buildings and major infrastructure;
- Direct wage subsidies for staff;
- Debt restructuring, fundraising or financing;
- Projects replacing discontinued government programs;
- Normal or on-going business and production operations
(including startups and/or expansions);
- Costs incurred prior to the approved project start date;
- Recurring costs such as reprinting; and
- Costs incurred in preparing an application.
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How to 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 immediate feedback on the fit of their proposed
project with program criteria; and
-
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.
Selection process
A Project Review Panel reviews applications and recommends
projects to the Minister of Agriculture, Food and Rural Affairs.
The panel has wide representation and the members have expertise
in business and rural economic development.
Applications are assessed according to evaluation criteria
for the Rural Economic Development Program. Evaluation is
conducted on an individual basis and includes the fit of the
project with the priorities and objectives of the Rural Economic
Development Program; level of commitment of the applicants;
demonstrated economic benefits to the broader rural community;
and the amount of financial support from private sector sources.
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Successful projects
All applicants for approved projects will be required to
sign an Agreement (i.e., contract) with the Province of Ontario.
Applicants are strongly advised to review a sample Agreement
prior to approval and to seek legal counsel regarding the
terms and conditions of the Agreement.
All parties signing Agreements with the Province of Ontario
are required to have comprehensive general liability insurance
with coverage for at least $2 million per occurrence. This
insurance must show the
Province (Her Majesty the Queen in right of Ontario) as an
additional insured on the policy and contain the endorsements
specified by the Agreement and is required throughout the
term of the Agreement.
A Certificate of Insurance from each of the applicants will
be required to be submitted to the Ministry prior to the signing
of an Agreement.
Municipalities and First Nations are required to submit a
Municipal By-law or Band Counsel Resolution allowing the municipality
or the band to enter into an Agreement with the Province of
Ontario. All companies and incorporated entities will also
be required to provide proof of current status (i.e., certificate
of status) and constituting documents (i.e., articles of incorporation
or letters patent, etc.) which indicate the full and proper
name of the organization as well as the proper signatories
to the Agreement. In the event that your business or organization
is not incorporated (i.e., sole proprietorship, unincorporated
association, etc.), please be advised that the individual
who signs the Agreement on behalf of the business or organization
will be assuming personal liability for the project. Moreover,
this individual would be subject to all the terms and conditions
set forth in the Agreement.
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Submissions
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 email 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.
Confidentiality
Application forms and supporting material submitted to the
Province of Ontario will be subject to the Freedom of Information
and Protection of Privacy Act. Any information submitted in
confidence should be clearly marked "CONFIDENTIAL"
by the applicant.
Where to get an application
or help
Information and application forms are available on our website
at www.ontario.ca/rural.
Information and advice on how to develop a project and complete
an application is also available from consultants in the regional
offices of the Ministry of Agriculture, Food and Rural Affairs.
A listing of offices and phone numbers are available on our
website or call us at 1-888-588-4111.
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