The Jobs and Growth Fund (JGF) is a new $700-million federal government funding program that aims to support Canadian economies with long-term growth and jobs creation following setbacks from the global COVID-19 pandemic. Also, JGF includes up to $70 million for small businesses established after January 2020.

“By investing in our job creators and the organizations that support them, the Jobs and Growth Fund will help to create quality jobs, pursue inclusive and clean growth opportunities, and empower businesses and communities from coast to coast to coast.”
– Mélanie Joly, Canada’s Minister of Economic Development and Official Languages.

These businesses must meet the program’s eligibility criteria. Highlighting this is crucial, as most grant and loan programs need businesses to be well established, meaning there is less funding for startups and entrepreneurs.

JGF financial support is being administered by Canada’s regional development agencies, including FedDev Ontario for Southern Ontario applicants and Western Economic Diversification Canada (WD) for applicants in Western Canada.

Funding snapshot: Jobs and Growth Fund (JGF) for Ontario and Western Canada

Applications are now being accepted on a continuous intake basis until March 31, 2024, or until funding is fully allocated. The Jobs and Growth Fund (JGF)  supports projects that stimulate job creation and long-term growth for Canadian organizations through a diverse focus on rebuilding the Canadian economy following the trials and tribulations of the COVID-19 pandemic.

Funding amount

• Eligible businesses may receive interest-free repayable contributions for up to 50% of eligible costs
• Eligible not-for-profit organizations could receive non-repayable contributions for up to 90% of eligible costs
• Eligible Indigenous organizations may receive contributions for up to 100% of eligible project costs
• Project contribution amounts do not normally exceed $10 million

Applicant eligibility

• SME Businesses, including co-operatives
• Not-for-profit organizations and community economic development partners
• Indigenous organizations

Eligible projects

To be eligible for the Jobs and Growth Fund, projects must:

Strengthen the capacity in sectors critical to Canada’s recovery and growth:

• Support scale-up and market expansion activities
• Develop emerging areas of global competitive advantage
• Support supply chain adaptation and diversification opportunities in critical sectors such as food production, medical supplies, and biomanufacturing

Foster an inclusive recovery:

• Support businesses owned or majority-led by underrepresented groups
• Increase the participation of underrepresented groups in the economy by supporting not-for-profit organizations that provide funding, business services, training, etc. for a more equitable workforce

Preserve Canada’s competitiveness and future-proof SMEs through digital adoption:

• Support the development or adoption of digital and technological solutions (i.e. Industry 4.0) to increase and promote business productivity
• Invest in technologies that help scale businesses, enhance their capabilities, and increase resilience

Support the transition to a green economy:

• Support the development and adoption of clean technology
• Help communities and businesses plan and drive clean, sustainable economic growth
• Partner with organizations to catalyze the development of green regional clusters
• Work with organizations supporting businesses to transition to a green economy

Program timeline:

• Applications will be accepted on a continuous basis until all funding is allocated.
• Certain costs may be eligible on a retroactive basis up to 12 months before the receipt of the project application, but no earlier than April 19, 2021.
• All projects must be completed prior to March 31, 2024.

If your Ontario or Western Canada organization wants government funding through the Jobs and Growth Fund (JGF), please reach out to the Mentor Works team to help streamline the application and grant writing process.

Government grants and loans for COVID-19 recovery

Although many Canadian provinces are no longer in strict COVID-19 lockdowns, and national vaccination rates are higher than any other country, many businesses across Canada are still feeling the negative impacts of the virus.

In addition to the new Jobs and Growth Fund (JGF), there are other government programs dedicated to providing COVID-19 relief and recovery funding. Stay posted on the Mentor Works COVID-19 Funding Programs Page for resources, news, programs, and COVID-19.

The post How the Jobs and Growth Fund supports Canada’s economy through COVID-19 appeared first on Trade Ready.

In March 2018 the Canada-Ontario Job Grant (COJG), a useful training grant for Ontario employers, announced several changes. Among the most significant is an increase in the number of businesses who can consider themselves a “small employer”. This will allow those businesses to receive a higher percentage of training project costs than the previous version.

The Canada-Ontario Job Grant is a government funding for training program that offsets third-party employee training expenses. Employers can select training that meets their workforce development needs and choose the individuals who participate in the training.

Effective immediately, COJG funding offsets 50-83% of businesses’ training costs to a maximum $10,000 to $15,000 per trainee.

Another notable change to the program through 2018-2019 is that a sizeable portion of the government’s budget will be devoted to funding consortium groups. Consortia training, defined as two or more employers being trained as part of the same program, seeks to attract smaller employers and industry associations.

2018-19 Changes to the Canada-Ontario Job Grant

The Canada-Ontario Job Grant has been enhanced through its 2018-19 guidelines. In light of of these changes, employers should review how much support their upcoming training project may receive and ensure their training is still eligible for government funding.

Update to Employer Size and Contribution Amounts

This year’s guidelines introduce new criteria for defining small and large employers. Since the size of an employer is an important factor in determining how much funding a project qualifies to receive, this is a significant change that applicants should be aware of:

Small Employers

• More employers will qualify as a small employer due to the threshold being increased from <50 to <100 employees.
• The standard contribution rate for small employers is 5/6 (83%) of training costs to a maximum $10,000/trainee.
• By hiring and training unemployed individuals, small employers may qualify for up to 100% of training costs to a maximum $15,000/trainee.

Large Employers

• Large employers are now defined as having 100+ employees.
• The standard contribution rate for large employers is 1/2 (50%) of training costs to a maximum $10,000/trainee.
• Large employers do not qualify for increased contributions by hiring and training unemployed individuals.

Update to Consortium Training

Although consortium training has previously been supported through the Canada-Ontario Job Grant, the provincial government has introduced some significant changes to this stream of the grant.

The program’s budget has been structured so that consortium training projects can be prioritized and awarded more than in the past. This is great news for companies that can benefit from similar training projects as other firms.

So how does it work?

Consortium application requires a lead applicant, which could be one of the organizations enrolling training, the training vendor, or another party such as industry associations and other organizations that have a mandate to support multiple companies.

These “lead applicants” are expected to coordinate training by communicating with businesses to formalize a plan for who’s being trained, and collecting fees from each business to ultimately pay the training provider. They’re also responsible for submitting a government funding application on behalf of the consortium.

The same funding contribution levels apply as they do to single employers. However, funding is awarded based on the largest training participant involved. So, if one company in the training consortium has 100 or more employees, the training cost is subject to a 50% contribution rate to a maximum $10,000 per employee. If all companies participating in the training have fewer than 100 employees, the consortium is eligible for up to 83% of eligible expenses.

This option is often the most cost-effective training method businesses can engage in because they share training costs among members of the consortium. There is typically some incremental cost increase per trainee added into the program, but this pales in comparison to the cost of training if each employer purchased their own training program.

Employer Eligibility

To receive COJG funding, employers must:

• Maintain operations in Ontario
• Provide cash contributions to pay non-grant covered training costs
• Abide by the Occupational Health and Safety Act and the Employment Standards Act
• Have sufficient Workplace Safety and Insurance Board (WSIB) or private workplace safety insurance.

Training Eligibility

The Canada-Ontario Job Grant also maintains specific criteria to evaluate the eligibility of training programs. To access COJG grants, training must:

• Take place in Ontario
• Be led by a qualified third-party training provider
• Deliver training that directly related to a business’ needs
• Not exceed one year in duration

How to Apply for COJG Training Grants

To receive COJG funding for an upcoming training project, employers must submit a comprehensive application package consisting of a company overview, detailed training plans, and multiple vendor quotes. Typically, applications are reviewed within 2-4 weeks.

To discuss your business’ eligibility and learn how to optimize the application process, please contact Mentor Works.

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