Updated April 2026 · Verified against Government of Ontario guidelines
Milestone-Based Est. 2008
Forgivable Loan Provincial Active

Southwestern Ontario Development Fund (SWODF) — Business Stream

Government of Ontario
Maximum Funding
Up to $5M
Multiple annual intakes (June 30 – September 23, 2026 open)
Visit Official Program →
Difficulty
Hard
Payment
Milestone-Based
Trend
Stable
First-Timers
Co-Funding
15%
Southwestern Ontario Development Fund (SWODF) — Business Stream provides up to Up to $5M forgivable loan (up to $500K forgiven); small/rural: grant up to $500K; strategic FDI: grant up to $1.5M Performance-based forgivable loans of up to 15% of eligible project costs (max $5M) for established businesses in 18 Southwestern Ontario counties, with up to $500K forgiven upon meeting targets. The program covers up to 15% of eligible costs. Applications are accepted Multiple annual intakes (June 30 – September 23, 2026 open). (As of April 2026, verified against Government of Ontario program guidelines)

Eligibility & Details

What this program funds and who can apply

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Program Description

Performance-based forgivable loans of up to 15% of eligible project costs (max $5M) for established businesses in 18 Southwestern Ontario counties, with up to $500K forgiven upon meeting targets. Small and rural businesses may access direct grants. Complements the sister EODF program covering Eastern Ontario.

Eligibility Requirements

  • For-profit business registered in Ontario
  • Minimum 3 years of operating history with audited financial statements
  • Minimum 10 FTE employees (5 FTE for small/rural businesses)
  • Minimum $500,000 project investment ($200,000 for small/rural)
  • Commit to creating at least 5 new FTE jobs (30% increase if under 15 FTEs)
  • Project located in one of 18 Southwestern Ontario counties
  • Cannot stack with other Ontario provincial programs (except tax credits)
Provinces
Ontario
Industries
Manufacturing Technology Innovation Agriculture Food Beverage
Business Stage
Established Expansion

Quick Assessment

Difficulty
Hard
Competition
Moderate
Est. Hours
30h
First-Timer
Not rated

Funding Details

Amount
Up to $5M forgivable loan (up to $500K forgiven); small/rural: grant up to $500K; strategic FDI: grant up to $1.5M
Type
Forgivable Loan
Level
Provincial
Co-Funding
Up to 15% of eligible costs
Deadline
Multiple annual intakes (June 30 – September 23, 2026 open)

Program Scorecard

Competition, effort, and approval at a glance

Hybrid
Competition
Moderate
Effort
~30 hours
Approval
Moderate
Accessibility
--/5
Competition
--/5
Approval Rate
--%

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What You Need to Get Approved
Everything reviewers look for — so you apply with confidence, not guesswork

How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

Identical structure to the EODF but for Southwestern Ontario's 18 counties. Pre-consultation with a regional advisor is mandatory. The small/rural stream (under 100 employees) converts to a straight grant — much more attractive. Cannot stack with EODF or other Ontario regional programs but can combine with federal programs up to 50% total. The Waterloo-Kitchener and Niagara regions are active corridors for this fund.

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Success Profile

Established SW Ontario manufacturers and agri-food processors investing $500K+ in equipment, facility expansions, or technology adoption. Companies in Waterloo Region, Niagara, Windsor-Essex, and rural counties with strong job creation potential.

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Evaluation Criteria

Assessed on economic impact (jobs, investment), strategic alignment with regional priorities, financial viability, and community benefit. Manufacturing and export-oriented projects score highest.

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Application Steps

1 Pre-consultation Contact a regional advisor to discuss your project.
2 Prepare documentation Gather financial statements, project plan, and projections.
3 Submit application Apply through TPON during an open intake window.
+2 more steps

Required Documents 5

Completed application form via Transfer Payment Ontario (TPON)
3 years of audited or reviewed financial statements
Detailed project plan with investment and job creation targets
5-year financial projections
Letters of support from municipal and economic development partners

Eligible Expenses 5

  • Capital equipment purchases and installation
  • Leasehold improvements directly related to the project
  • Technology and software acquisition
  • Training costs for new or upgraded equipment
  • Incremental salaries for project-related staff

Ineligible Expenses 5

  • Land acquisition
  • Building construction or purchase
  • Working capital or operating expenses
  • R&D costs
  • Costs incurred before project approval

Intake Periods

Multiple annual intakes. Current: June 30 – September 23, 2026.

Deadline Notes

Recurring intake schedule with multiple windows per year. Current open period: June 30 – September 23, 2026 (Application Period 23). Pre-consultation with a regional advisor required. Decisions within ~60 business days.

Open Application Portal →

Ineligible Organizations

  • Retail businesses
  • Construction companies
  • Personal services businesses
  • Consulting firms
  • Electricity generation companies
  • Waste management companies
  • Standalone restaurants and hotels

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Stacking partner data not yet available.

Combined Funding Potential See your total funding potential

Clawback Risk

Medium Risk

Non-met targets reduce or eliminate forgiveness. Non-forgiven portion must be repaid in full.

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Stacking amounts, clawback details, government stacking limits, and tax implications
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How SWODF Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
Southwestern Ontario Development Fund... Up to $5M Hard Milestone-Based Multiple annual intakes...
Strategic Response Fund (formerly Str... Up to $50 million Hard Mixed (Advance + Reimb.) Ongoing — continuous...
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Next deadline: May 29,...
Ontario Innovation Tax Credit Up to 8% tax credit Moderate Tax Credit Offset Ongoing
Interactive Digital Media Tax Credit 25% of eligible BC Moderate Tax Credit Offset Ongoing

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