Preparing Effective Funding Proposals

Preparing Effective Funding Proposals

Presented by:

Ministry of Agriculture, Food and Rural Affairs

Ministry of Economic Development, Employment and Infrastructure

Economic Developers Council of Ontario 2016 Annual Conference

February 4, 2016

1

Session Objectives

• Explain the proposal writing process, and

components of an effective proposal

• Understand how proposals are evaluated

• Tips for managing projects

• To provide an overview of regional and rural

economic development programs

2 OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

The Proposal Writing Process

3

Articulate the Need

Identify Funding Sources

Refine Concept

Write & Submit

Proposal

Proposal Evaluation

Project Admin

OMAFRA / MEDEI - Preparing Effective Funding Proposals Session

Articulate the Project Need

What is the problem or

opportunity

• Why is it important?

• What are you planning to

do about it?

• How will you do it?

• Why your organization?

4

Articulate Need

Identify funding sources

Refine concept

Write & submit

proposal

Proposal Eval

Project Admin



Current fiscal environment:

• Competition

• Expectations

• Accountability

All are increasing.

5

Articulate Need


Refine concept

Write & submit

proposal

Proposal Eval

Project Admin



What to look for: • What are the program

objectives (why was it created)

• Who is eligible

• What is eligible for funding

• What is the intake process

• What previous projects have been funded

6

Articulate Need


Refine concept

Write & submit

proposal

Proposal Eval

Project Admin



Potential sources:

• Ministry of Agriculture, Food and Rural Affairs

• Ministry of Economic Development, Employment and Infrastructure

• Grants Ontario

• Northern Ontario Heritage Fund

• Federal Government

• Other

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Articulate Need

Identify potential sources

Refine concept

Write & submit

proposal

Proposal Eval

Project Admin


Refining Project Concept

• Are there any organizations we could partner with for the project?

• Is there any supporting information required/recommended?

• Develop high level plan

• Discuss project with funding agency

8

Articulate Need


Refine concept

Write & submit

proposal

Proposal Eval

Project Admin


Refining Project Concept

Budget

• Be realistic – don’t underestimate or overestimate costs

• Identify project costs (both eligible and ineligible)

• How else will you fund the project?

Evaluation

• What will the performance measures be?

9

Articulate Need


Refine concept

Write & submit

proposal

Proposal Eval

Project Admin


Writing and Submitting the Proposal

• Read the guidelines

• Choose a good name - short and

descriptive

• Answers to application questions

• Keep language simple and direct

• Assume staff don’t know your

context

• Clarify the need for support

• Pay attention to the deadline

• Review

10

Establish the Need


Refine concept

Write & submit

proposal

Proposal Eval

Project Admin


Proposal Evaluation

11

Articulate Need


Refine concept

Write & submit

proposal

Proposal Evaluation

Project Admin


Proposal Evaluation - What makes a

weak proposal

• Project is not well defined • Poor fit with program objectives

• No clear objectives & deliverables/outcomes

• Lack of financial information, supporting documentation • Costs and project activities not clearly defined

• Project budget, expenditure and source of funding numbers do not match or math is incorrect

• Unsecured funding

• Incomplete application submitted


Proposal Evaluation - What makes a

strong proposal

• Project objectives and deliverables are clear and measureable • Need for project is evident (and has research to support)

• The project is innovative and unique

• Outcomes match program objectives

• Positive economic impacts

• Financially committed partners

• Strong letters of support

• Request for eligible costs only

• Organization has capacity to complete project & reporting requirements


Tips to Improve Applications

Market Information (Understanding the Market Opportunity)

• In what market(s) does the company currently compete?

• How large is the market and what is the market trend? Is it growing/flat/declining?

• Does the company have a diverse customer base/long term contracts in place? Who are the largest customers and how long has the company had a business relationship with them?

• How is the market segmented, and which segments does the company target? What is the company’s market share?



Competition

• Identify (name, size and location) the major competitors for the business.

• Does the company have a competitive advantage in the marketplace? Explain.

• How does the company differentiate its offerings relative to the competition?

• On what basis do companies compete: price, quality, distribution, other?

• What are the strengths and weaknesses of the key competitors?



Regional Impact

• Does the project involve a priority sector for the region?

• Does the project contribute to strengthening the industry/sector/cluster in the region? If so, how?

• Discuss the impact of the project on the supply chain and supplier relationships? Quantify if possible.

• Provide the total dollar value of all the inputs (products/services) sourced from within Ontario annually.

• Identify (name and location) the company’s major suppliers from within Ontario.



Impact of Government Support

• How would government support enhance/improve the project outcomes?

• Would the project create more jobs? Would the jobs be created faster?

• Would the company be able to purchase better/more equipment?

• Would the company be able to get a product to market faster?


Project Administration

If your proposal is accepted

• Review the funding agreement • What documentation is required?

• Is the proposed project timeline still accurate?

• What are the reporting requirements for the for the project?

• Find out when you can start project activities

• Set up reporting system

• Coordinate for public announcement

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Articulate Need


Refine concept

Write & submit

proposal

Proposal Eval

Project Admin


Project Administration - Reporting

• When/how often must you report on

progress?

• What key indicators do you need to

report on?

• Who has the appropriate authority

to sign off on the reports?

• Can you provide the necessary

back-up documents (receipts, etc.)?

• Communicate early if there are

unexpected project delays

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Articulate Need


Refine concept

Write & submit

proposal

Proposal Eval

Project Admin


Funding Sources


The RED Program

• The Rural Economic Development (RED) program provides cost-shared funding support for projects that will strengthen rural Ontario.

• With the support of the RED program, rural communities, organizations and businesses are better positioned to create jobs and attract investment.

• Since 2003, Ontario has invested more than $185 million in almost 600 RED program projects, generating more than $1.2 billion in economic activity and creating and retaining 37,000 jobs

OMAFRA - Rural Economic Development

Program

22

RED Program Objectives

RED provides funding to projects that help rural businesses and

communities work toward achieving the following outcomes:

• Increased ability to identify priorities and measure economic

performance and outcomes

• Collaboration for economic growth

• Increased economic competitiveness and diversity

• Innovative businesses and communities

• Increased efficiency and productivity for rural businesses

• Expansion of markets

• Creation and retention of jobs

• Development of a highly skilled and knowledgeable workforce

23 OMAFRA - Rural Economic Development

Program

RED Program Streams

The program has two streams:

• Community Development

• Business Development

For both streams, projects receiving other provincial

funding are not eligible to apply for or receive funding under

the RED program.

• A project is defined as one set of new activities

undertaken to achieve a specific outcome.


Program

Community Development Stream

25

• The Community Development Stream is open to the

following applicants:

• Not-for-profits

• Community organizations

• Municipalities

• Local Service Boards

• First Nations, Inuit or Métis community

• The level of support under the Community Development

Stream:

• Cost-share – up to 50%

• No cap


Program

Business Development Stream

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• The Business Development Stream is open to all

businesses except:

• Retail

• Commercial developments

• The level of support under the Business Development

Stream :

• Cost-share – up to 20%

• Cap of $1 million (provincial share)


Program

Rural Eligibility

Applicants must demonstrate how projects will benefit rural

Ontario.

• Project takes place in rural Ontario, or

• Evidence is provided that demonstrates benefits to rural

Ontario through:

• jobs created and/or retained in rural Ontario

• purchase of supply inputs from rural Ontario

• training of workforce in rural Ontario

• strengthening/improving the value chain that includes

businesses/linkages with rural Ontario

• strong collaboration with partners from rural Ontario with letters of

support


Program

Eligible Projects

Program categories:

Planning 1. Plans or strategies

2. Applied research and analysis to support planning and priority-setting

Implementation 3. Business or sector development and diversification

4. Marketing, promotional or branding activities

5. Workforce attraction, retention and development


Program

Eligible Costs

• Project management and project-related professional fees

• Minor capital, including: equipment, renovations and retrofits

to existing structures

• Technology upgrades

• Training

• Marketing or promotion-related costs

• Travel costs in Canada and the continental United States,

• Studies

• Administrative costs directly related to project implementation

• Wages for new hires to work 100% on project-related

activities


Program

Approvals Process

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Staff undertake an assessment & technical due

diligence review

Assessments presented to the RED Panel

RED Panel makes recommendations to the

Minister

Minister makes final decision


Program

Project Assessment

Eligible applications will be assessed on criteria including:

• Alignment with RED program's project categories and

outcomes

• Demonstrated need, issue or opportunity

• Applicant financial contribution to the project

• Demonstrated benefit to rural Ontario

• Reasonable and eligible project costs

• Demonstrated project management experience and skills

• Innovation

• Sustainability beyond the project timelines

• Degree of collaboration


Program

Project Assessment

For large business projects, eligible applications will be

assessed on criteria including:

• Productivity

• Market access

• Training

• Regional/sector benefits


Program

Application Process

The current intake dates for application submissions are as

follows:

• January 16, 2016 to April 15, 2016

• April 16, 2016 to July 15, 2016

• July 16, 2016 to October 15, 2016

• October 16, 2016 to January 15, 2017


Program

34

Eastern Ontario Development Fund

Southwestern Ontario Development Fund

Program Overview

Ontario Ministry of Economic Development, Employment and Infrastructure

EODF and SWODF Program Objectives

Established by the Attracting Investment and Creating Jobs Act,

the purpose of the Eastern Ontario Development Fund (EODF)

and Southwestern Ontario Development Fund (SWODF)

regional funds is to:

• Provide financial assistance to promote regional economic

development in eastern and southwestern Ontario;

• Attract private sector investment;

• Create and retain jobs;

• Promote innovation, collaboration and cluster development.

There are two funding streams – one targeted to business and

the other to economic development organizations/municipalities.

35 MEDEI – EODF & SWODF Overview

EODF/SWODF Business Stream

Business Stream is open to businesses with:

• 10 or more employees (5 for small rural communities);

• 3+ years of operating/financial history, and

• In eligible sector (manufacturing, processing, life sciences, tourism, ICT)

Eligible Projects

• Minimum investment $500,000 (some exceptions)

• Lead to job creation

• Regional economic impact, Enhance productivity, innovation and new

markets

• For example, investments in technology leading to new products/markets

and job creation

Level of Support is up to 15%; maximum $1.5M grant.

• If a company is creating > 50 jobs and investing > $10M, support is up to

$5M loan, with $1.5M forgivable.

• No stacking with other provincial funding programs.


EODF and SWODF Regional Stream

• Open to municipalities and not-for-profit organizations with an

economic development mandate, industry associations, Aboriginal

organizations.

Eligible Projects

• Minimum investment $100,000

• Attract private sector investment and jobs

• Implement regional economic development priorities

• Align with provincial and regional priorities

• Eligible sector

• For example, investment in infrastructure to secure foreign direct

investment

Level of Support is up to 50%, maximum $1.5M grant.

• No stacking with other provincial funding programs

• EODF and SWODF are discretionary, non-entitlement programs


Eligible Region – Southwestern Ontario

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For the purposes of the SWODF program, “Southwestern Ontario” is defined as the following 17 geographic areas

under the Territorial Divisions Act, 2002: Brant, Bruce, Chatham-Kent, Dufferin, Elgin, Essex, Grey, Haldimand, Huron,

Lambton, Middlesex, Niagara, Norfolk, Oxford, Perth, Waterloo, Wellington.

MEDEI – EODF & SWODF Overview

Eligible Region – Eastern Ontario


Eligible Costs

Eligible expenses are for one time, project specific expenditures

including:

• Project facility modifications/upgrades

• Equipment and machinery

• One-time labour and one-time materials,

• Specialized expertise

• Skills training

Projects up to 4 years long

Only costs incurred after a conditional funding agreement is

executed are eligible.


Application and Approval Process

• Continuous intake of applications in two stages:

• Eligibility checklist

• Full application – business case and budget, job chart

• Assessment and Due Diligence

• Review by multi-ministry senior management committee

• Decision made by the Minister of Economic Development, Employment and Infrastructure.

• The Fund is a discretionary, non-entitlement program.

• Service standard commitment of 60 business days from complete application to decision.

• Following approval: Legal Agreement with project deliverables and timelines.

• Clawbacks if job creation and investment targets not met


Project Assessment

Eligible applications are assessed on criteria including:

• Alignment with the goals of the Funds

• Create high value added, sustainable jobs,

• Attract investment

• Regional economic benefits

• Incrementality / need for government support

• PIE (Productivity, Innovation, Export/New Markets)

• Project budget – eligible costs, sources of financing

• Risks – likelihood of project to deliver results (market,

technology, company management capacity, financing,

compliance)

42 MEDEI – EODF & SODF Overview

Session Summary

• Get organized

• Remember that every funding

program has different

requirements

• Develop a strong project proposal

• Where possible, tie the responses

back to the key objectives or goals of

funding program

• Demonstrate that there is capacity

to ensure the successful

completion of the project and all

reporting requirements

43

Establish the Need


Refine concept

Write & submit

proposal

Proposal Eval

Project Admin


Preparing Effective Funding Proposals

Government & Nonprofit

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