Ontario Shipbuilding Grant Program (OSGP)
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Eligibility & Details
What this program funds and who can apply
Program Description
Non-repayable grants covering up to 50% of eligible project costs for Ontario for-profit shipbuilders to fund workforce training, infrastructure improvements, and equipment purchases that enhance competitiveness or build long-term industry capacity. More than 50% of an applicant's business revenue must come from the construction, refit, retrofit, repair and/or maintenance of marine vessels; builders of personal or recreational watercraft are ineligible. Ontario has invested over $90 million through the OSGP to date and is expanding the program with up to $64 million in future funding.
Eligibility Requirements
- Legally authorized to operate a for-profit business in Ontario
- More than 50% of the applicant's business revenue must stem from the construction, refitting, retrofitting, repairing and/or maintenance of marine vessels for commercial, research, passenger transportation or other special purpose uses (e.g. search and rescue)
- Applicants whose principal business is building watercraft ordinarily used for personal or recreational purposes are ineligible
- Must operate a physical shipbuilding facility in Ontario and be actively carrying out shipbuilding activities in Ontario
- Must have the financial capacity to deliver the project for which funding is being sought
- Must not be in the process of, or currently preparing for, closure, dissolution, bankruptcy, or sale of the business
- Projects must occur within Ontario and be completed within two years
- Applicant must contribute a minimum of 25% of total project costs, and total funding from all provincial sources cannot exceed 50% of total project cost
- Only one application per applicant is accepted
- Projects must align with at least one program objective: enhance operational efficiency/productivity, unlock business growth or new opportunities, or build long-term manufacturing/organizational capacity for Ontario's shipbuilding industry
- Program is competitive — meeting eligibility does not guarantee funding
Quick Assessment
Funding Details
- Amount
- Up to 50% of eligible project costs; total funding from all provincial sources cannot exceed 50% of total project cost
- Type
- Grant
- Level
- Provincial
- Co-Funding
- Up to 50% of eligible costs
- Deadline
- Between intakes — second intake expected to launch late summer 2026
Program Scorecard
Competition, effort, and approval at a glance
Everything you need to win OSGP
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 10 rejection pitfalls reviewers flag — so you catch them first
- 6-document checklist with what each reviewer is actually checking
- 7-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 3-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what reviewers score on
How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe second intake is expected in late summer 2026, so the window to prepare is now. Early engagement with the Marine Partnerships and Development Office ([email protected]) before the intake opens is advisable to understand evaluation priorities — and because you only get one application per applicant, there is no cheap first attempt. Frame applications around job creation and skills development, as the broader provincial investment is tied to Ontario's workforce strategy for the marine sector. Projects that address the skills gap (apprenticeships, upskilling for advanced marine technologies) alongside equipment and infrastructure are likely to score highest. Watch the project management line: it cannot exceed 15% of total eligible expenditures.
Rejection Pitfalls 10
- 50% or less of business revenue comes from construction, refit, retrofit, repair, or maintenance of marine vessels
- Principal business is building watercraft ordinarily used for personal or recreational purposes
- No physical shipbuilding facility in Ontario, or not actively carrying out shipbuilding activities in Ontario
Success Profile
An Ontario shipyard or marine vessel manufacturer with a physical Ontario facility, actively shipbuilding, and drawing more than half its revenue from marine vessel work, undertaking a major capital or training project — new welding equipment, fabrication hall expansion, CNC cutting technology, or an apprenticeship-based workforce upskilling program — aligned with commercial vessel construction or the federal National Shipbuilding Strategy.
Evaluation Criteria
Ministry evaluates applications on: (1) alignment with program objectives — operational efficiency, business growth, or long-term capacity; (2) economic and employment impact — jobs created or retained, skills development within Ontario's shipbuilding sector; (3) project feasibility — realistic scope, budget, and two-year completion timeline; (4) financial capacity of the applicant to contribute the 25%+ matching requirement; (5) alignment with Ontario's broader shipbuilding investment and the federal National Shipbuilding Strategy.
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 6
Eligible Expenses 5
- Workforce training, upskilling, and apprenticeship programs
- Infrastructure improvements to shipbuilding facilities
- Machinery and equipment purchases directly tied to shipbuilding operations
- Project management costs directly associated with eligible activities, capped at 15% of a project's total eligible expenditures
- Installation and commissioning of new equipment
Ineligible Expenses 5
- Land or building acquisitions
- Lease or rental costs for facilities
- General facility maintenance not tied to a capital project
- Marketing and business development activities
- Costs incurred before the transfer payment agreement is signed
Intake Periods
The first intake ran July–September 30, 2025. The second application intake is expected to launch in late summer 2026; no exact dates have been published. Only one application per applicant is accepted. Contact [email protected] for confirmed timing.
Deadline Notes
The first intake ran July–September 30, 2025, with applications submitted through Transfer Payment Ontario (TPON). The second application intake is expected to launch in late summer 2026 (Ontario news release, July 8, 2026) — no exact opening or closing date has been published. Contact [email protected] for confirmed timing, and note that the OSGP accepts only one application per applicant. Projects must be completed within two years.
Ineligible Organizations
- Non-profit organizations
- Government agencies and crown corporations
- Businesses not operating in Ontario
- Businesses drawing 50% or less of their revenue from marine vessel construction, refit, repair, or maintenance
- Builders whose principal business is watercraft ordinarily used for personal or recreational purposes
- Businesses in the process of, or preparing for, closure, dissolution, bankruptcy, or sale
Applying for OSGP? Our Grant Proposal Template ($19) mirrors the section structure Canadian reviewers actually score on. Or get all 4 templates in the Founder Pack ($59 · saves $27) →
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Medium RiskClawback applies if the project is not completed within two years, eligible expenses are not incurred as approved, or reporting and insurance obligations are not met per the transfer payment agreement. The two-year project timeline constraint means delays can trigger clawback.
How OSGP Compares
Side-by-side with similar programs
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|---|---|---|---|---|
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Frequently Asked Questions
Quick answers to the questions founders most often ask about OSGP