Regional economic development grants help communities and local organizations invest in projects that create jobs, attract investment, and strengthen local economies. One of the most common reasons applications are rejected is unclear or ineligible expenses. Programs like the Northern Ontario Development Program — Community Economic Development (NODP–CED) fund up to 50% of eligible project costs, but only if those costs directly support economic outcomes in Northern Ontario.
Below is a clear breakdown of what expenses are usually eligible, using real program rules and examples from Northern Ontario and other regional development programs across Canada.
While each program has its own guidelines, most regional economic development grants follow similar rules. Expenses must be directly tied to the approved project, be reasonable and necessary, and be incurred after application approval unless stated otherwise.
These are some of the most commonly approved costs, especially for community-focused projects.
Eligible expenses often include:
Under the Northern Ontario Development Program — Community Economic Development, these activities are explicitly listed as eligible uses of funding.
Many programs allow a portion of funding to cover the cost of managing the project.
This may include:
These costs must be directly attributable to the project, not general operations. Time tracking and clear cost allocation are usually required.
Regional economic development grants often support physical assets that benefit the local economy.
Commonly eligible expenses:
For example, NODP–CED supports investments in industrial and commercial assets that strengthen community economies.
Equipment is usually eligible if it is essential to achieving the project’s economic goals.
Examples include:
Programs such as REGI — Business Scale-up and Productivity allow equipment costs when tied to productivity or technology adoption, although this program targets SMEs rather than communities.
Some regional grants allow training costs when they support long-term economic outcomes.
Eligible costs may include:
The NODP–CED specifically allows youth internships to support community economic development projects.
Marketing costs are usually eligible only when they support a broader economic objective.
This may include:
Marketing must be project-specific, not ongoing brand or tourism promotion unless clearly justified.
Tools like GrantHub’s eligibility matcher can help you filter programs by province and project type in seconds, so you know which expenses to plan for before you apply.
Understanding what isn’t funded is just as important.
Most regional economic development grants do not cover:
For example, retail and service-based business activities are excluded under several FedNor programs unless there is a clear community-wide economic impact.
Rent, utilities, and general admin costs are often ineligible unless clearly tied to the project. Always separate project costs from day-to-day operations.
Most programs will not reimburse costs incurred before you receive written approval. Starting early can make those expenses ineligible.
Lumping costs together makes it hard for funders to assess eligibility. Break down expenses with clear descriptions and quotes.
Not all construction or equipment is eligible. The expense must directly support the approved economic development activity.
Q: Are staff salaries eligible under regional economic development grants?
Yes, if the staff are working directly on the approved project. General administrative or unrelated roles are usually not eligible.
Q: Can municipalities apply for community economic development funding?
Yes. Municipalities and municipal organizations are eligible applicants under the Northern Ontario Development Program — Community Economic Development.
Q: Is funding repayable or non-repayable?
It depends on the program. NODP–CED funding is generally repayable, with terms set by FedNor.
Q: Can marketing costs be included in my budget?
Sometimes. Marketing must support a broader economic goal, such as attracting investment or promoting a new community asset, not ongoing promotion.
Q: Do projects need to be located in Northern Ontario?
Yes. Project benefits must clearly accrue to Northern Ontario to be eligible under NODP–CED.
After the FAQs: GrantHub tracks hundreds of active grant programs across Canada — check which ones match your organization’s project and region.
Before you apply, map every expense back to a clear economic outcome and the program’s stated objectives. Regional economic development grants reward clarity and impact. GrantHub helps you compare eligible expenses across federal and provincial programs, so you can build a budget that funders are more likely to approve.
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