presentation given at the 2016 Economic Developer Council of Ontario Annual Conference

1. Preparing Effective Funding Proposals
Presented by:
Ministry of Agriculture, Food and Rural Affairs
Ministry of Economic Development, Employment and Infrastructure
Economic Developers Council of Ontario 2016 Annual Conference
February 4, 2016
1

2. Session Objectives
• Explain the proposal writing process, and
components of an effective proposal
• Understand how proposals are evaluated
• Tips for managing projects
• To provide an overview of regional and rural
economic development programs
2 OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

3. The Proposal Writing Process
3
Articulate
the Need
Identify
Funding
Sources
Refine
Concept
Write &
Submit
Proposal
Proposal
Evaluation
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

4. Articulate the Project Need
What is the problem or
opportunity
• Why is it important?
• What are you planning to
do about it?
• How will you do it?
• Why your organization?
4
Articulate
Need
Identify
funding
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

5. Identify Funding Sources
Current fiscal environment:
• Competition
• Expectations
• Accountability
All are increasing.
5
Articulate
Need
Identify
funding
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

6. Identify Funding Sources
What to look for:
• What are the program
objectives (why was it
created)
• Who is eligible
• What is eligible for funding
• What is the intake process
• What previous projects have
been funded
6
Articulate
Need
Identify
funding
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

7. Identify Funding Sources
Potential sources:
• Ministry of Agriculture, Food
and Rural Affairs
• Ministry of Economic
Development, Employment and
Infrastructure
• Grants Ontario
• Northern Ontario Heritage
Fund
• Federal Government
• Other
7
Articulate
Need
Identify
potential
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

8. Refining Project Concept
• Are there any organizations
we could partner with for the
project?
• Is there any supporting
information
required/recommended?
• Develop high level plan
• Discuss project with funding
agency
8
Articulate
Need
Identify
potential
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

9. Refining Project Concept
Budget
• Be realistic – don’t underestimate
or overestimate costs
• Identify project costs (both
eligible and ineligible)
• How else will you fund the
project?
Evaluation
• What will the performance
measures be?
9
Articulate
Need
Identify
potential
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

10. Writing and Submitting the Proposal
• Read the guidelines
• Choose a good name - short and
descriptive
• Answers to application questions
• Keep language simple and direct
• Assume staff don’t know your
context
• Clarify the need for support
• Pay attention to the deadline
• Review
10
Establish
the Need
Identify
potential
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

11. Proposal Evaluation
11
Articulate
Need
Identify
potential
sources
Refine
concept
Write &
submit
proposal
Proposal
Evaluation
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

12. Proposal Evaluation - What makes a
weak proposal
• Project is not well defined
• Poor fit with program objectives
• No clear objectives & deliverables/outcomes
• Lack of financial information, supporting
documentation
• Costs and project activities not clearly defined
• Project budget, expenditure and source of funding
numbers do not match or math is incorrect
• Unsecured funding
• Incomplete application submitted
12 OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

13. Proposal Evaluation - What makes a
strong proposal
• Project objectives and deliverables are clear and
measureable
• Need for project is evident (and has research to support)
• The project is innovative and unique
• Outcomes match program objectives
• Positive economic impacts
• Financially committed partners
• Strong letters of support
• Request for eligible costs only
• Organization has capacity to complete project &
reporting requirements
13 OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

14. Tips to Improve Applications
Market Information (Understanding the Market
Opportunity)
• In what market(s) does the company currently
compete?
• How large is the market and what is the market trend?
Is it growing/flat/declining?
• Does the company have a diverse customer base/long
term contracts in place? Who are the largest customers
and how long has the company had a business
relationship with them?
• How is the market segmented, and which segments
does the company target? What is the company’s
market share?
14 OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

15. Tips to Improve Applications
Competition
• Identify (name, size and location) the major competitors
for the business.
• Does the company have a competitive advantage in the
marketplace? Explain.
• How does the company differentiate its offerings relative
to the competition?
• On what basis do companies compete: price, quality,
distribution, other?
• What are the strengths and weaknesses of the key
competitors?
15 OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

16. Tips to Improve Applications
Regional Impact
• Does the project involve a priority sector for the
region?
• Does the project contribute to strengthening the
industry/sector/cluster in the region? If so, how?
• Discuss the impact of the project on the supply chain
and supplier relationships? Quantify if possible.
• Provide the total dollar value of all the inputs
(products/services) sourced from within Ontario
annually.
• Identify (name and location) the company’s major
suppliers from within Ontario.
16 OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

17. Tips to Improve Applications
Impact of Government Support
• How would government support
enhance/improve the project outcomes?
• Would the project create more jobs? Would
the jobs be created faster?
• Would the company be able to purchase
better/more equipment?
• Would the company be able to get a product
to market faster?
17 OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

18. Project Administration
If your proposal is accepted
• Review the funding agreement
• What documentation is required?
• Is the proposed project timeline still
accurate?
• What are the reporting
requirements for the for the
project?
• Find out when you can start
project activities
• Set up reporting system
• Coordinate for public
announcement
18
Articulate
Need
Identify
funding
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

19. Project Administration - Reporting
• When/how often must you report on
progress?
• What key indicators do you need to
report on?
• Who has the appropriate authority
to sign off on the reports?
• Can you provide the necessary
back-up documents (receipts, etc.)?
• Communicate early if there are
unexpected project delays
19
Articulate
Need
Identify
funding
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

20. Funding Sources
20 OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

21. 21

22. The RED Program
• The Rural Economic Development (RED) program
provides cost-shared funding support for projects that
will strengthen rural Ontario.
• With the support of the RED program, rural communities,
organizations and businesses are better positioned to
create jobs and attract investment.
• Since 2003, Ontario has invested more than $185 million
in almost 600 RED program projects, generating more
than $1.2 billion in economic activity and creating and
retaining 37,000 jobs
OMAFRA - Rural Economic Development
Program
22

23. RED Program Objectives
RED provides funding to projects that help rural businesses and
communities work toward achieving the following outcomes:
• Increased ability to identify priorities and measure economic
performance and outcomes
• Collaboration for economic growth
• Increased economic competitiveness and diversity
• Innovative businesses and communities
• Increased efficiency and productivity for rural businesses
• Expansion of markets
• Creation and retention of jobs
• Development of a highly skilled and knowledgeable workforce
23 OMAFRA - Rural Economic Development
Program

24. RED Program Streams
The program has two streams:
• Community Development
• Business Development
For both streams, projects receiving other provincial
funding are not eligible to apply for or receive funding under
the RED program.
• A project is defined as one set of new activities
undertaken to achieve a specific outcome.
24 OMAFRA - Rural Economic Development
Program

25. Community Development Stream
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• The Community Development Stream is open to the
following applicants:
• Not-for-profits
• Community organizations
• Municipalities
• Local Service Boards
• First Nations, Inuit or Métis community
• The level of support under the Community Development
Stream:
• Cost-share – up to 50%
• No cap
OMAFRA - Rural Economic Development
Program

26. Business Development Stream
26
• The Business Development Stream is open to all
businesses except:
• Retail
• Commercial developments
• The level of support under the Business Development
Stream :
• Cost-share – up to 20%
• Cap of $1 million (provincial share)
OMAFRA - Rural Economic Development
Program

27. Rural Eligibility
Applicants must demonstrate how projects will benefit rural
Ontario.
• Project takes place in rural Ontario, or
• Evidence is provided that demonstrates benefits to rural
Ontario through:
• jobs created and/or retained in rural Ontario
• purchase of supply inputs from rural Ontario
• training of workforce in rural Ontario
• strengthening/improving the value chain that includes
businesses/linkages with rural Ontario
• strong collaboration with partners from rural Ontario with letters of
support
27 OMAFRA - Rural Economic Development
Program

28. Eligible Projects
Program categories:
Planning
1. Plans or strategies
2. Applied research and analysis to support planning
and priority-setting
Implementation
3. Business or sector development and diversification
4. Marketing, promotional or branding activities
5. Workforce attraction, retention and development
28 OMAFRA - Rural Economic Development
Program

29. Eligible Costs
• Project management and project-related professional fees
• Minor capital, including: equipment, renovations and retrofits
to existing structures
• Technology upgrades
• Training
• Marketing or promotion-related costs
• Travel costs in Canada and the continental United States,
• Studies
• Administrative costs directly related to project implementation
• Wages for new hires to work 100% on project-related
activities
29 OMAFRA - Rural Economic Development
Program

30. Approvals Process
30
Staff undertake an assessment & technical due
diligence review
Assessments presented to the RED Panel
RED Panel makes recommendations to the
Minister
Minister makes final decision
OMAFRA - Rural Economic Development
Program

31. Project Assessment
Eligible applications will be assessed on criteria including:
• Alignment with RED program's project categories and
outcomes
• Demonstrated need, issue or opportunity
• Applicant financial contribution to the project
• Demonstrated benefit to rural Ontario
• Reasonable and eligible project costs
• Demonstrated project management experience and skills
• Innovation
• Sustainability beyond the project timelines
• Degree of collaboration
31 OMAFRA - Rural Economic Development
Program

32. Project Assessment
For large business projects, eligible applications will be
assessed on criteria including:
• Productivity
• Market access
• Training
• Regional/sector benefits
32 OMAFRA - Rural Economic Development
Program

33. Application Process
The current intake dates for application submissions are as
follows:
• January 16, 2016 to April 15, 2016
• April 16, 2016 to July 15, 2016
• July 16, 2016 to October 15, 2016
• October 16, 2016 to January 15, 2017
33 OMAFRA - Rural Economic Development
Program

34. 34
Eastern Ontario Development Fund
Southwestern Ontario Development Fund
Program Overview
Ontario Ministry of Economic Development, Employment and Infrastructure

35. EODF and SWODF Program Objectives
Established by the Attracting Investment and Creating Jobs Act,
the purpose of the Eastern Ontario Development Fund (EODF)
and Southwestern Ontario Development Fund (SWODF)
regional funds is to:
• Provide financial assistance to promote regional economic
development in eastern and southwestern Ontario;
• Attract private sector investment;
• Create and retain jobs;
• Promote innovation, collaboration and cluster development.
There are two funding streams – one targeted to business and
the other to economic development organizations/municipalities.
35 MEDEI – EODF & SWODF Overview

36. EODF/SWODF Business Stream
Business Stream is open to businesses with:
• 10 or more employees (5 for small rural communities);
• 3+ years of operating/financial history, and
• In eligible sector (manufacturing, processing, life sciences, tourism, ICT)
Eligible Projects
• Minimum investment $500,000 (some exceptions)
• Lead to job creation
• Regional economic impact, Enhance productivity, innovation and new
markets
• For example, investments in technology leading to new products/markets
and job creation
Level of Support is up to 15%; maximum $1.5M grant.
• If a company is creating > 50 jobs and investing > $10M, support is up to
$5M loan, with $1.5M forgivable.
• No stacking with other provincial funding programs.
36 MEDEI – EODF & SWODF Overview

37. EODF and SWODF Regional Stream
• Open to municipalities and not-for-profit organizations with an
economic development mandate, industry associations, Aboriginal
organizations.
Eligible Projects
• Minimum investment $100,000
• Attract private sector investment and jobs
• Implement regional economic development priorities
• Align with provincial and regional priorities
• Eligible sector
• For example, investment in infrastructure to secure foreign direct
investment
Level of Support is up to 50%, maximum $1.5M grant.
• No stacking with other provincial funding programs
• EODF and SWODF are discretionary, non-entitlement programs
37 MEDEI – EODF & SWODF Overview

38. Eligible Region – Southwestern Ontario
38
For the purposes of the SWODF program, “Southwestern Ontario” is defined as the following 17 geographic areas
under the Territorial Divisions Act, 2002: Brant, Bruce, Chatham-Kent, Dufferin, Elgin, Essex, Grey, Haldimand, Huron,
Lambton, Middlesex, Niagara, Norfolk, Oxford, Perth, Waterloo, Wellington.
MEDEI – EODF & SWODF Overview

39. Eligible Region – Eastern Ontario
39 MEDEI – EODF & SWODF Overview

40. Eligible Costs
Eligible expenses are for one time, project specific expenditures
including:
• Project facility modifications/upgrades
• Equipment and machinery
• One-time labour and one-time materials,
• Specialized expertise
• Skills training
Projects up to 4 years long
Only costs incurred after a conditional funding agreement is
executed are eligible.
40 MEDEI – EODF & SWODF Overview

41. Application and Approval Process
• Continuous intake of applications in two stages:
• Eligibility checklist
• Full application – business case and budget, job chart
• Assessment and Due Diligence
• Review by multi-ministry senior management committee
• Decision made by the Minister of Economic Development,
Employment and Infrastructure.
• The Fund is a discretionary, non-entitlement program.
• Service standard commitment of 60 business days from
complete application to decision.
• Following approval: Legal Agreement with project deliverables
and timelines.
• Clawbacks if job creation and investment targets not met
41 MEDEI – EODF & SWODF Overview

42. Project Assessment
Eligible applications are assessed on criteria including:
• Alignment with the goals of the Funds
• Create high value added, sustainable jobs,
• Attract investment
• Regional economic benefits
• Incrementality / need for government support
• PIE (Productivity, Innovation, Export/New Markets)
• Project budget – eligible costs, sources of financing
• Risks – likelihood of project to deliver results (market,
technology, company management capacity, financing,
compliance)
42 MEDEI – EODF & SODF Overview

43. Session Summary
• Get organized
• Remember that every funding
program has different
requirements
• Develop a strong project proposal
• Where possible, tie the responses
back to the key objectives or goals of
funding program
• Demonstrate that there is capacity
to ensure the successful
completion of the project and all
reporting requirements
43
Establish
the Need
Identify
potential
sources
Refine
concept
Write &
submit
proposal
Proposal
Eval
Project
Admin
OMAFRA / MEDEI - Preparing Effective Funding Proposals Session