FedDev Ontario is the Government of Canada’s regional development agency for southern Ontario, investing in businesses, organizations and communities to drive innovation, strengthen competitiveness and create long-term economic growth
The Federal Economic Development Agency for Southern Ontario (FedDev Ontario), one of seven Government of Canada regional development...
The Federal Economic Development Agency for Southern Ontario (FedDev Ontario), one of seven Government of Canada regional development agencies, is driving economic growth in southern Ontario.
The Agency works across one of Canada’s most dynamic and diverse economic regions, partnering with businesses, not-for-profit organizations, Indigenous communities, incubators, accelerators and industry associations.
Generating 39% of the country’s GDP, southern Ontario is central to Canada’s economy, supply chains and national resilience. The region is home to some of our nation’s most critical industries, including 92% of Canada’s auto sector, 50% of Canadian steel businesses and 50% of the country’s AI firms.
To support economic strength in this important region, over the past decade, FedDev Ontario has invested over $3.7 billion in more than 4,300 projects, supporting nearly 300,000 jobs. These investments help businesses commercialize new products and technologies, scale operations, strengthen supply chains and create quality jobs.
The Agency’s investments also leverage private-sector and partner funding, helping accelerate economic growth and competitiveness across the region.
Responding to Tariff and Trade Pressures
Recent tariff and trade developments have created uncertainty for many businesses, particularly those with integrated North American supply chains. The Government of Canada has provided over $25 billion in support to Canadian workers and businesses affected by U.S. tariffs and announced a further $7.5 billion in new and enhanced measures in August 2026 that deliver fast, simple and agile supports to Canadian workers and businesses impacted by tariffs. Visit the Canada Strong page for details.
As part of this investment, Canada’s regional development agencies are delivering $3.45 billion through the national Regional Tariff Response Initiative (RTRI) to help businesses respond to tariff pressures and pursue new opportunities. This includes funding to support day-to-day operations and the liquidity needs of businesses impacted by tariffs. Funding is also available for not-for-profit organizations that help businesses adapt, grow, and expand trade opportunities. Support is available across a range of sectors, including manufacturing, steel, aluminum, copper, automotive, food security and forestry.
This funding not only helps businesses manage short-term trade disruptions, it strengthens long-term competitiveness, resilience and growth in an evolving global marketplace. For information on eligibility criteria and how to apply visit FedDev Ontario’s web page at https://feddev-ontario.canada.ca/en/funding-southern-ontario/regional-tariff-response-initiative-southern-ontario.
Additional Programming and Services
Beyond RTRI, FedDev Ontario supports businesses that are bringing innovative products and technologies to market, adopting advanced manufacturing processes, integrating digital and AI-enabled solutions and scaling to serve customers across Canada and internationally through other programming.
As part of Canada’s National Artificial Intelligence Strategy: AI for All, regional development agencies are delivering an additional $500 million over five years through the expanded Regional Artificial Intelligence Initiative (RAII), bringing total federal funding for the initiative to $700 million.
RAII helps de-risk AI adoption by SMEs by lowering barriers to investment and implementation, supporting Canada’s broader objective of increasing AI adoption and productivity across the economy. It also provides funding to companies to support AI commercialization. Visit https://feddev-ontario.canada.ca/en/funding-southern-ontario/regional-artificial-intelligence-initiative-southern-ontario for details on how to apply.
The Regional Defence Investment Initiative provides targeted support to strengthen SMEs’ capacity to compete and grow within Canada’s defence ecosystem.
FedDev Ontario also provides funding supports to SMEs through ongoing regional programming.
Funding for businesses supports companies that are commercializing new technologies, expanding production capacity, entering new markets, adopting advanced manufacturing processes or scaling operations. Funding for organizations that help businesses grow supports the intermediaries—accelerators, industry associations and regional bodies. These investments strengthen the broader innovation ecosystem and help more businesses access the expertise, networks and resources they need to succeed.
Support for rural, Francophone and community-based economic development is available through initiatives such as the Community Futures Program, the Economic Development Initiative and the Build Communities Strong Fund, connecting businesses, entrepreneurs and organizations with funding, resources and opportunities that support local economic growth. Support is also available for Indigenous-owned businesses, organizations and not-for-profits, connecting applicants with advisors and tailored supports.
In addition to funding programs, FedDev Ontario offers specialized services that help businesses identify opportunities, build connections and access the information they need to grow and compete.
What it is: Guidance on defence and security sector opportunities, partnerships, procurement and supply chains.
Why it matters: Helps businesses navigate and compete in a complex and growing sector.
Domestic Trade Commissioners Network
What it is: Connections, market intelligence and support to help businesses expand across Canada.
Why it matters: Helps businesses diversify markets and identify new growth opportunities.
What it is: Information on federal, provincial and municipal programs and services.
Why it matters: Helps entrepreneurs find the right support and navigate available resources more easily.
Why Business Owners Should Take a Closer Look
FedDev Ontario supports a broad range of sectors, including manufacturing, agri-food processors, technology and other growth-oriented business.
The Agency provides interest-free repayable contributions as flexible capital to support growth, expansion and innovation without requiring business owners to give up equity.
Building Southern Ontario Strong
Southern Ontario is home to a strong network of federal, provincial and municipal and community-based organizations dedicated to supporting business growth. FedDev Ontario serves as an important entry point into that ecosystem.
Whether businesses are commercializing new technologies, expanding production, diversifying markets, adopting advanced technologies or responding to economic uncertainty, FedDev Ontario provides funding, expertise and connections that help turn ambitious plans into growth.
For southern Ontario business owners, the first step is simple: explore the Business Benefits Finder and available services, connect with FedDev Ontario to explore available programs, assess how they align with your goals and start a conversation. Many of the region’s most successful growth stories began with a single idea, a clear vision and the right support at the right time.
Subscribe to FedDev Ontario’s Southern Ontario Spotlight newsletter, featuring economic development news and updates from across the region. Learn more about some of FedDev Ontario’s recipients by visiting the impact stories page or view the new results page to see how the Agency is Building Southern Ontario Strong.
Website: feddev-ontario.canada.ca
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Disclaimer: This article is based on publicly available information intended only for informational purposes. CanadianSME Small Business Magazine does not endorse or guarantee any products or services mentioned. Readers are advised to conduct their research and due diligence before making business decisions.
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