FedDev Ontario — Business Scale-up and Productivity
Up to $10M in repayable contributions for scaling Ontario businesses
Overview
$500K to $10M for Ontario businesses ready to scale
FedDev BSP is the federal government's scale-up program for Southern Ontario. Unlike grants, BSP provides interest-free repayable contributions — you pay it back over time, but there's no interest and no equity dilution.
The program targets companies that have validated their product and need capital to scale production, expand capacity, or adopt new technology. Revenue-generating companies with a clear growth trajectory are the sweet spot.
This is not early-stage funding. FedDev BSP expects a business plan, financial projections, and a clear explanation of how the funding drives job creation and economic growth in Ontario.
Who Qualifies
Hard Gates — Must Have
Southern Ontario location
Must operate in the FedDev Ontario region
Revenue-generating
Must have existing revenue (not pre-revenue)
Growth plan
Clear plan for how funding drives scale-up
Job creation
Funding must result in new jobs or retained positions
Soft Gates — Nice to Have
Technology adoption
Projects involving new tech or process improvement score higher
Export potential
Companies with international growth plans preferred
How Much
Range
$500K – $10M
Rate
Repayable contribution (0% interest)
Example Recovery
$2M repayable contribution (0% interest, 10-year term)
Interest-free, repayable over 10 years. Typical repayment starts after a 2-year grace period. Not a grant — it's better than a loan but must be repaid.
Worked Example
Your spend
$2M manufacturing expansion
You recover
$2M repayable contribution (0% interest, 10-year term)
Note
2-year grace period, then equal installments
Application Process
Expression of interest
Submit EOI through FedDev Ontario portal with project summary.
Full application
If invited, submit detailed business case, financials, and project plan.
Due diligence
FedDev conducts financial and project review.
Contribution agreement
Negotiate terms, sign agreement, begin project.
Disbursement
Funding released in tranches tied to milestones.
Common Mistakes
Treating it like a grant
BSP is repayable. Budget for repayment starting year 3. Companies that treat it as free money run into cash flow issues later.
Weak job creation narrative
FedDev cares about economic impact. If your project doesn't clearly create or retain jobs, the application will be deprioritized.
Applying pre-revenue
BSP is for scale-up, not startup. If you don't have revenue yet, look at IRAP or Futurpreneur instead.
Key Deadlines
Intake
Rolling
No fixed deadline, but budget allocations are annual. Apply early in the federal fiscal year (April).
Related Programs
Check if you qualify for FedDev Ontario — Business Scale-up and Productivity
32+ programs. 2-minute scan. See your eligibility, estimated recovery, and recommended next steps.