Dajcor Aluminum Secures Multiple Ontario Government Funding Wins
Dajcor Aluminum Ltd. is a leading manufacturer of extruded and fabricated metal components. Their products are used among the automotive, renewable energy, military, construction, marine, and indoor plumbing industries. Since being established in 2010, the company has invested significant resources to its expansion and now supports over 150 employees.
Dajcor recently received a repayable contribution of $2.4 million in Ontario business loans through FedDev Ontario’s Investing in Business Growth and Productivity (IBGP) program. This government funding will provide the capital necessary to enhance their facility and increase long-term competitiveness.
This latest funding win will combine with over $1 million in Ontario government grants to provide nearly $3.5 million in funding. Strategically combining multiple programs like this is an effective way to extend project funding. This method of financing projects supports the faster adoption and completion of projects.
Related Post: Dajcor Aluminum Awarded Over $1M in Ontario Business Grants
Ontario Government Funding Enables Dajcor’s Growth
During 2016, Dajcor began a $10.3 million project with the goal of increasing productivity and export revenue. This project would allow the company to diversify its products, increase its number of skilled-workers, and increase competitiveness by accessing new global markets.
The project budget will be financed through:
- $1.02 million in Ontario government grants won through the provincial program, Southwestern Ontario Development Fund (SWODF);
- $2.48 million in Ontario business loans obtained through the FedDev Ontario repayable funding initiative, Investing in Business Growth and Productivity (IBGP); and
- $6.8 million in internal financing.
Stack Canadian Government Funding to Maximize Cash Flow
Like Dajcor, many businesses can combine or “stack” Canadian government grants and loans to increase project funding. By stacking small business funding, companies can accelerate project timelines and increase return on investment (ROI).
Stacking allows businesses to access multiple government grants and loans to support the same project.
How Stacking Works
- Federal/Provincial Stacking: In most cases, businesses can stack federal funding along with provincial funding as long as they do not exceed the maximum allowable government contribution (typically 75% of total project costs).
- Federal/Federal Stacking: In some instances, businesses may be eligible to stack more than one federal funding program against the same project, without exceeding the maximum allowable government contribution (typically 75% of total project costs).
- Provincial/Provincial Stacking: Generally, businesses cannot stack multiple provincial funding programs for the same project.
Dajcor’s Canadian government funding success leveraged one federal and one provincial funding program and is a great example of how cash flow can be maximized through stacking.
Dajcor’s Funding Strategy Includes Stacking
Stacking is an underutilized strategy when it comes to maximizing project budgets. It’s a method that requires forward-thinking and applying for funding well ahead of the project’s start date. However, when these tactics are incorporated, it can lead to millions of dollars in extra small business funding.
Mentor Works assisted Dajcor’s management team to identify the stacking opportunities available for their project.
Discover Ontario Government Funding for Upcoming Projects
Companies of all sizes and sectors should consider ways to maximize their project funding.
To discover if your business is eligible for Ontario government funding programs, please contact Mentor Works.
