FedDev Ontario recently announced that it will provide local manufacturer, Stanpac, Inc., with a $4.5 million investment through the Investing in Business Growth and Productivity (IBGP) program. This Ontario government funding will help Stanpac expand its manufacturing operations in Smithville, Ontario.
The expansion project, which is estimated to cost a total of $45.6 million, will allow the company to upgrade its facility, boost productivity, and increase energy efficiency.
Stanpac, Inc. is a growth-oriented manufacturer that specializes in 100% recyclable dairy packaging and glass beverage containers. The company is the largest employer in Smithville, Ontario and supports over 220 employees.
FedDev’s contribution will help Stanpac, Inc. install four brand new production lines, integrate innovative manufacturing processes, reduce greenhouse gas (GHG) emissions, and create 50 permanent jobs in Ontario.
Related Post: $6.6M in Ontario Government Funding Awarded to Growing Manufacturers
$4.5M in Ontario Government Funding Aids Business Expansion Project
After nearly reaching maximum capacity, Stanpac established a $45.6 million growth initiative to expand production, foster export expansion, and improve operational efficiency at its Ontario-based facility.
Stanpac invested a total of $41.1 million into the project and an additional $4.5 million was secured through Ontario business loans.
The investment will support installation of four state-of-the-art production lines at the company’s Smithville plant. Along with equipment upgrades, the Stanpac will update its manufacturing processes, leading to enhanced productivity improvements.
50 new jobs will be created as result of the investment, and it will also allow Stanpac to address environmental issues in their distribution. Railway shipping operations will be increased to reduce annual greenhouse gas (GHG) emissions.
“It takes a community to make a difference and the FedDev Ontario investment will make a huge difference as we continue to leverage our innovation and proprietary products throughout North America and beyond.”
– Murray Bain, Vice President Marketing, Stanpac Inc.
Ontario Government Funding for Business Expansion
Ontario government grants and loans can support the investments of businesses in a wide variety of industries. Capital investment and technology adoption projects with large capital spends are often the target of these programs, and can be quite lucrative for the businesses using them.
Three programs that provide this support for Ontario businesses are:
Southwestern/Eastern Development Fund
The Southwestern Ontario Development Fund (SWODF) and the Eastern Ontario Development Fund (EODF) facilitate business investment through the support of expansion projects that improve business productivity and create jobs.
- Projects Under $10 Million: May receive up to 10-15% of eligible expenses to a maximum of $1.5 million in business grants.
- Projects Exceeding $10 Million: May be eligible for repayable funding support worth 10-15% of the total project costs to a maximum $3.5 million contribution.
FedNor Northern Business Opportunity Program
FedNor’s Northern Business Opportunity Program provides business expansion funding to attract investment in northern Ontario. There are four unique streams of funding provided through the fund, including:
- New Investments: Assists competitive businesses located in other provinces or territories to relocate or begin new operations in northern Ontario.
- Business Expansion Projects: Businesses currently located in northern Ontario completing expansion projects leading to job, revenue growth.
- Small Business Startup Projects: Development of new businesses not yet established elsewhere in Canada.
- Film & Television Industry Projects: Development of theatrical feature films, made-for-television films, or television series.
Please Note: At the time of this article’s posting, FedDev’s Investing in Business Growth and Productivity (IBGP) program has very limited funding available, however other programs such as the Jobs and Prosperity Fund may be of interest to high growth Ontario businesses.
Ontario Government Funding for Small Business Growth
Ontario-based manufacturers are routinely awarded grants and loans to support their business expansion projects. We consistently see the value of building a Proactive Funding Plan™ and how it ensures businesses are prepared for funding cycles and not taking an ineffective, reactive approach to funding.
Those interested in learning more about Ontario government grants and loans may contact Mentor Works, or sign up for our weekly funding newsletter.
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