Targeted Manufacturing Initiative for Northern Ontario: How to Apply

If your manufacturing business operates in Northern Ontario and wants to improve productivity, the Targeted Manufacturing Initiative for Northern Ontario can help cover some of the costs. FedNor delivers this program through the Regional Economic Growth through Innovation (REGI) program. The initiative supports manufacturers who are already established and planning for growth.

This guide explains how the Targeted Manufacturing Initiative for Northern Ontario – Productivity Improvements stream works. It covers who qualifies, what activities are funded, and how to apply with confidence.

Who Is Eligible

To qualify for the Productivity Improvements stream, your business must meet all of these:

You are an established manufacturer in Northern Ontario.
Your business is already operating and makes a commercial product.
You have plans to grow and improve productivity.
Your project’s benefits will help Northern Ontario.

Startups and pre-revenue companies do not qualify for this program.

What Activities Are Funded

The Productivity Improvements stream supports projects that upgrade real manufacturing processes. According to FedNor, the program aims to help Northern Ontario manufacturers modernize, improve efficiency, and boost competitiveness.

Eligible Activities

You can apply for funding if your project includes:

Modernizing your production facility
Improving or automating manufacturing processes
Buying, installing, or commissioning new plant equipment
Training staff to use new equipment or systems
Putting into action recommendations from a previous operational assessment

Your project should show a clear link to better productivity and competitiveness.

Funding Amount and Structure

Funding level: Up to 50% of eligible project costs
Type: Repayable contribution (not a non-repayable grant)
Stacking: You may combine this with other government funding, but total public funding limits apply

Unlike the Operational Assessments stream, which has a $15,000 cap, the Productivity Improvements stream does not list a fixed maximum. FedNor reviews each project and decides the amount on a case-by-case basis.

Note: FedNor says the program’s budget is limited due to high demand. You should talk to a FedNor officer before applying.

How to Apply for the Targeted Manufacturing Initiative for Northern Ontario

The application process is more personal than many automatic grant programs.

Step 1: Confirm Your Eligibility

Check that your business is in Northern Ontario and mainly manufactures a commercial product. If you are unsure, see How to Know If Your Business Qualifies as Manufacturing Under Provincial Funding Programs.

Step 2: Plan a Productivity-Focused Project

FedNor wants projects with clear productivity gains. Strong applications show:

Measurable improvements in efficiency
Increased output or less downtime
Clear business growth results

Projects for general maintenance or vague upgrades are less likely to be approved.

Step 3: Contact a FedNor Officer

FedNor asks all applicants to speak with a program officer before applying. This step helps confirm if your project fits the program and saves you time.

Step 4: Prepare Your Application Package

You will need:

A detailed project description and timeline
A budget with eligible costs clearly shown
Recent business financial statements
An explanation of how your project will boost productivity and competitiveness

Using a tool like GrantHub’s eligibility matcher can help you quickly filter Northern Ontario programs and check if your business matches before you apply.

Step 5: Submit and Respond to Questions

After you submit, FedNor may ask for more details or changes. Replying quickly and clearly can help your application move forward.

Common Mistakes to Avoid

Not contacting FedNor first
With a limited budget, skipping this step often leads to rejection.
Treating the funding as a non-repayable grant
This is a repayable contribution, so plan for repayments in your budget.
Proposing general upgrades
Only projects with direct, measurable productivity improvements are competitive.
Applying as a startup or pre-revenue business
The program is only for manufacturers who are already operating.

Frequently Asked Questions

Q: Is the Targeted Manufacturing Initiative for Northern Ontario a grant or a loan?
It is a repayable contribution. This means you must pay it back under terms set by FedNor.

Q: How much funding can my business receive?
FedNor can cover up to 50% of eligible project costs. There is no set maximum for the Productivity Improvements stream.

Q: Can I apply if I already completed an operational assessment?
Yes. Many businesses first do an assessment, then apply for productivity funding to act on the recommendations.

Q: Are equipment purchases eligible?
Yes, as long as the equipment directly improves productivity and competitiveness and is part of an approved project.

Q: Does my project have to benefit Northern Ontario?
Yes. The benefits of your project must be for Northern Ontario, even if your company has other locations.

Next Steps

If your manufacturing business is ready to invest in real productivity improvements, the Targeted Manufacturing Initiative for Northern Ontario could be a good fit. Start by confirming your eligibility and planning a project that shows clear productivity gains. Before you apply, make sure to speak with a FedNor officer.

To find other programs that fit your business, try GrantHub’s matcher tool. It can help you compare programs across Canada, including those for Northern Ontario manufacturers.

See also:

How Location-Based Grant Eligibility Works in Canada (Rural, Northern, Regional)
How to expand a business in Northern and Rural Canada using government programs
Northern and Arctic Business & Community Funding: Eligibility Overview

Targeted Manufacturing Initiative for Northern Ontario: How to Apply