FedDev Ontario — Business Scale-up and Productivity (BSP)

Insider Tip

Contact FedDev at info@feddevontario. gc.ca before applying — they actively help shape viable proposals. The 50% cost-share was recently increased from 35%, making BSP significantly more attractive. Since you can only have one active FedDev application at a time, choose BSP over other streams only if your project exceeds $125K. For tariff-impacted businesses, check the RTRI non-repayable stream first.

Rejection Pitfalls 6

• Located outside southern Ontario (northern Ontario served by FedNor/NOHFC)
• Fewer than 5 full-time employees
• Cannot demonstrate financial capacity to complete project and repay contribution

Success Profile

Incorporated business in southern Ontario with 5+ FTEs and 2+ years operating history. Demonstrated revenue, externally audited financials, and ability to match 50%+ of project costs. Priority given to advanced manufacturing, AI, clean technology, defence, and life sciences sectors.

Evaluation Criteria

Innovation and productivity impact, economic benefit (job creation, revenue growth, export potential), sector alignment (priority: AI, clean tech, cybersecurity, advanced manufacturing, defence, life sciences, agri-tech, digital health), financial capacity to sustain project and repay contribution, management track record, and commercial readiness (TRL 7+ preferred).

Application Steps

Required Documents 7

Eligible Expenses 8

• Machinery and equipment purchases and installation directly related to the project
• Project-specific facility renovations for specialized equipment (not building purchases)
• Software directly required for project activities
• Incremental salaries and benefits for employees directly tied to project activities
• Professional expertise and consulting fees for project-specific advisory
• Marketing and outreach directly related to the project's commercial objectives
• Training and talent development tied to project technology adoption
• Direct materials consumed specifically in completing project activities

Ineligible Expenses 11

• Land and building purchases
• Regularly scheduled capital expenditures and asset replacement (non-incremental)
• Personal motorized vehicles and off-site equipment
• Raw materials and inventory for regular production operations
• Ongoing production or operational costs (not project-specific)
• External consultant fees for preparing the application itself
• Hospitality, entertainment, and non-project travel expenses
• Refinancing of existing debt
• Costs of amortization and goodwill
• Basic and applied research in a lab setting (TRL 1-5)
• Purchase of assets above fair market value

Intake Periods

Scheduled intake windows: Intake 2 (closed Feb 26, 2026), Intake 3 (Oct 1, 2026), Intake 4 (Feb 25, 2027). Subscribe to feddev-ontario.canada.ca for exact open dates within each window.

Deadline Notes

BSP does not appear in FedDev Ontario current active programs list as of April 2026. Current programs are RTRI, RDII, and Economic Development Initiative. BSP may have been replaced or is between intakes. Verify directly with FedDev.

Open Application Portal →

Ineligible Organizations

• Businesses located outside southern Ontario (northern Ontario served by FedNor/NOHFC)
• Businesses with fewer than 5 full-time employees
• Businesses with more than 500 FTEs
• Businesses operating in Canada/Ontario for fewer than 3 years
• Sole proprietorships (must be incorporated)
• Not-for-profit organizations (separate FedDev NPO stream exists)
• Businesses with an existing active FedDev Ontario application or active project
• Businesses whose projects are approved under Canada's Strategic Innovation Fund (SIF)
• Projects primarily targeting retail consumer markets

Compatible Programs

Clawback Risk

Low Risk

Low-to-moderate. Key triggers: project activities commenced before application approval (automatic disqualifier), project not completed, misrepresentation in application, change of control or insolvency before repayment completion, expenditure outside approved project scope, failure to sign contribution agreement within 30 days of approval.