Helping to Grow the North

Helping to Grow the North

Presented by : Joel Lafrance, Northern Development Officer

Wawa Funder’s ForumJune 2013

Prepared September 2010Jennifer van der Valk – NOHFC Marketing

Background

• The Corporation was established on June 1, 1988 with $30 million per year, for 12 years.

• NOHFC current annual budget is $100 million.• The mandate of NOHFC is to partner with northerners to create jobs and

strengthen the northern economy. • Together with its northern partners, the NOHFC is:

• exploring new innovations in emerging technologies• mobilizing motivated entrepreneurs• providing exciting career opportunities for northern youth• forging strong private and public sector partnerships• enhancing the vital infrastructure that makes Northern Ontario a vibrant place to

live and work• encouraging innovative solutions to alternative renewable energy generation


NOHFC Priority Themes and Programs

Growing JobsYouthFirst NationsCommunity DevelopmentEnergy Emerging Technologies & Telecommunications

Enterprises North Job Creation ProgramEntrepreneur ProgramYouth Internship and Co-op ProgramYoung Entrepreneur ProgramInfrastructure and Community Development Emerging Technology ProgramNorthern Energy Program

Programs

Themes


Enterprises North Job Creation

New and existing enterprises that will create jobs in Northern Ontario

Capital construction costs, leasehold improvements, purchase of new or used equipment/machinery, staff training, marketing, land servicing and intellectual capital that results in job creation in Northern Ontario.

Assistance to any one project generally will not exceed 50 % of eligible capital costs up to $1 million.

Up to one-half of NOHFC funding may be in the form of a conditional contribution with the remainder in the form of a repayable loan.

NOHFC Funding

Types of Assistance

What is Eligible

Who is Eligible


Northern Ontario Entrepreneur Program

Capital costs related to starting a new business and marketing costs totalling up to 20% eligible project costs.

Conditional contributions

Assistance generally will not exceed 50% of eligible costs up to $125,000.

Residents of Northern Ontario who are plan to start their own for-profit business in the North.

NOHFC Funding

Types of Assistance

What is Eligible

Who is Eligible


Northern Ontario Young Entrepreneur Program

Capital costs related to starting a new business such as office furniture, fixtures and equipment.


Assistance generally will not exceed 85% of eligible costs up to $25,000.

Residents of Northern Ontario 18 to 29 years old (inclusive) who are planning on starting their own business in the North.

NOHFC Funding

Types of Assistance

What is Eligible

Who is Eligible


Emerging Technology Program

• Information and communications technology Infrastructure

• Centres of excellence

• Value added products

• Biotechnology and life sciences projects

This program has both public and private sector components.

What is Eligible

Who is Eligible


Emerging Technology Program (continued)

Public sector component provides for conditional contributions, forgivable performance loans and repayable loans.

The private sector component is a combination of conditional contributions and repayable loans.

Public Sector Emerging Technology

• Generally, up to 50% for capital projects in the form of conditional contributions, forgivable performance loans and repayable loans normally not to exceed $1 million.

Private Sector Emerging Technology

• Generally, up to 50% for capital projects normally not to exceed $1 million.

• May provide up to $100,000 non-repayable contributions for research and developmental technical projects.

NOHFC Funding

Types of Assistance


Moratorium: Cellular/Broadband Expansion

• Currently, the NOHFC is not accepting new applications for cellular/broadband expansion projects.

• The NOHFC is awaiting the release of a FedNor/BlueSky gap analysis study that will be used to redefine NOHFC’s priorities for such projects on a go-forward basis.

• Since 2005, NOHFC has approved (net of rescissions), $53 million in funding to 31 cellular/broadband expansion projects in Northern Ontario.


Moratorium: Film/TV Production

• Currently, the NOHFC is not accepting new applications for film/TV projects.

• The NOHFC Board has decided to maintain the moratorium on new applications until such a time that NOHFC has completed revisions and changes to this component of the Emerging Technology program.

• Since 2004, $54.8 million has been approved to 80 film projects in Northern Ontario.


Northern Ontario Youth Internship and Co-op Program

Co-op placements and internships

• Health Care

• Social Services

• Value Added Manufacturing

• Telecommunications

• Bio-technologies

• Environmental sciences

• Other activities that will result in an economic development advantage for Northern Ontario

A wide range of both private sector and public sector employers located in Northern Ontario.

What is Eligible

Who is Eligible


Northern Ontario Youth Internship and Co-op Program (continued)


Co-op Placements

• Generally will not exceed 50% of a wage subsidy to a maximum of $6.00 per hour to hire post-secondary students from Northern Ontario.

Internships

• Generally will not exceed 50% to a maximum of $27,500 annually for private sector employers 90 per cent to a maximum of $27,500 annually for public sector employers to hire recent college and university graduates from Northern Ontario.

NOHFC Funding

Types of Assistance


Northern Energy Program

Renewable energy planning and new internal generation projects.

Businesses and non-profit organizations.

Forgivable performance loans or conditional contributions.

Types of Assistance

What is Eligible

Who is Eligible

Renewable Energy Planning

• Generally will not exceed 50% of eligible costs up to a maximum of $100,000.

New Internal Energy Generation Projects

• Generally will not exceed 50% of eligible costs up to a maximum of $250,000.

NOHFC Funding


Infrastructure and Community Development Program

Municipalities, First Nations, not-for-profit corporations and educational institutions may apply individually or in partnership with businesses and other government related agencies.

This program will assist in the provision of essential and strategic community infrastructure necessary for the creation of jobs in Northern Ontario.

Conditional contributions, forgivable performance loans and repayable loans.

Infrastructure Projects• Generally not to exceed 50% for capital projects up to

a maximum of $1 million.

Community Development Initiatives• Generally not to exceed 50% for community

development initiatives up to a maximum of $50,000.

NOHFC Funding

Types of Assistance

What is Eligible

Who is Eligible


Regional Economic Opportunities Partnership

• The Northern Ontario Heritage Fund Corporation (NOHFC)’s Infrastructure and Community Development Program has been enhanced.

• The Regional Economic Opportunities Partnership initiative will provide a greater emphasis on regional collaboration.

• Communities can now apply collectively for funding to projects that will support long-term sustainable economic development on a regional scale.

• The NOHFC Board has more flexibility to provide greater funding to communities if they apply collectively rather than individually.


REOP: Why?

• The Growth Plan for Northern Ontario seeks to foster successful collaborations that boost regional economies and create direct jobs.

• There is significant interest throughout the North in regional collaboration and regional economic development projects. For some communities, a lack of capacity to participate in such initiatives is a barrier.

• Placing a greater focus on regional economic opportunities through the NOHFC’s ICD program will provide timely support to help communities build economic development capacity and investment readiness.

• The program will address short-term/immediate opportunities for the development of regional economic plans and project funding needs.


REOP: Who is Eligible?

• A region must encompass at least two northern local governments (municipal or First Nation).

• The resulting collaboration should include training and educational institutions, sector organizations, not-for-profits, and industries as appropriate.

• The number of communities and partners may vary depending on partnership opportunities, geography, and project type.

• Applicants must demonstrate that the project has been identified and formally agreed upon as a regional priority, and all project partners must demonstrate commitment to the project (e.g., council resolution, commitment of funding/in-kind support, direct participation).


REOP: What is Eligible?

• Labour force development• Population strategies• Capacity building• Training requirements• Other regional non-capital projects which align with the Growth Plan and the existing and emerging priority sectors.

• Sector-based research projects• Business retention and attraction strategies• Infrastructure requirement studies• Development of economic development plans

Considerations:• Eligibility of consulting fees will be limited. • Eligible project related costs may include costs related to project management and technical expertise costs, travel, accommodations related to the implementation of the project.• Ongoing municipal administrative costs associated with delivering municipal services would not be eligible.


REOP: Funding

• NOHFC support will come in the form of conditional contributions.

• Communities over 20,000 population:• Generally not to exceed 50% per project up to a maximum of $50,000 per community.

• Communities under 20,000 population:• Generally not to exceed 75% per project up to a maximum of $50,000 per community.• This raised threshold applies only if there are no other funding programs available to partner with on the

project. (e.g. FedNor, MTCU, OMAFRA, MAA, etc.)

• In-kind community contributions will be considered to encourage engagement and capacity building among partners. Such contributions could factor into the determination of the level of NOHFC assistance.


REOP: Potential Project Examples

• Regional trade training/skills centres that prepare Aboriginal people for employment in the mining sector.

• Establishment of innovation networks to deliver projects and services that would benefit a specific emerging/existing priority sector.

• Other initiatives could be based on emerging and priority sectors identified in the Growth Plan, regional sector investment attraction, regional immigration collaborations, efforts to support critical regional labour shortages, etc.


Application Process for NOHFC Programs

• NOHFC Executive Director, management and staff review applications based on the NOHFC’s published program guidelines.

• All applicants receive a written response from the NOHFC. • Eligible private sector applications are evaluated by NOHFC’s due diligence

provider (Deloitte & Touche).• Eligible public sector applications are evaluated by the Ministry of Northern

Development and Mines.• NOHFC Committees review the evaluations and make recommendations to

the Board.• The NOHFC Board makes the final decision regarding NOHFC approvals.


Northern Ontario Heritage Fund Results

Since 2003:

• The NOHFC has assisted 5,420 projects.

• The NOHFC has approved more than $834 million in funding.

• The NOHFC has leveraged more than $3 billion from other project partners.

• The NOHFC has helped to create or sustain more than 22,000 jobs and work placements.


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Documents

Helping to Grow the North