Continuous improvement in manufacturing is vital to help our businesses continue to grow and stay competitive in the global market. Have you thought about implementing changes to make your manufacturing process more lean? Are you working towards improving the quality of the product you manufacture? What about reducing a negative impact you may have on our environment? While these are great projects to implement, sometimes we don’t always have the funds available to actually do so.
That’s where the CME SMART Funding Program comes in.
The Canadian Manufacturers and Exporters group (CME) created the CME SMART Program with funding provided by the government of Ontario. This program was created to help small to medium sized manufacturers in Ontario improve efficiency and productivity to better compete in the global market.
How do they do this? They help fund projects that implement changes to improve your operational efficiency. These projects could include lean manufacturing and/or design, environmental impact reduction, IT best practices, quality improvement and energy efficiency. These projects should hopefully not just increase your efficiency but would change the way you do business, as well as reduce or eliminate waste (both wasted time and wasted materials) and phase out mistakes and non-value-added activities.
After getting approval from CME for the funding, these projects must be started within 2 months of your notification of selection from the CME, and should not take longer than 6 months to implement.
How much do they fund? The best projects proposed to the CME SMART Program get selected for funding, and you can receive either 50% of your project costs, or $50,000 – whichever is less.
Who is eligible? Companies with 10-500 employees that have their manufacturing operations in Ontario are eligible for the CME SMART Program. These companies would have to have been in operation in Ontario for at least two years.
Northbridge Consultants is a service provider for the CME SMART Program. We can provide you with SMART Assessments and help you implement these programs.
Lines of credit have almost completely dried up in this recession, and it’s harder than ever for businesses to fund their new development projects. Ontario’s Advanced Manufacturing Investment Strategy (AMIS) is a great venue for Ontario manufacturers to pursue. What’s more, AMIS is available to companies from all manufacturing sectors in Ontario. The $500 million dollar provincial program focuses on:
- industrial R&D
- design/prototyping/engineering
- new/ advanced products/materials
- advanced manufacturing processes
- robotics/software development
- waste reduction
- energy conservation
AMIS, when granting a loan, can provide up to 30% of the total eligible costs of a project (up to a limit of $10M). This funding is given in the form of a repayable loan. The loan is interest free and principal free for up to five years, providing the company receiving it meets job and investment targets mutually agreed upon between the company and the province. After that period, the repayment rate is the province’s cost of borrowing, plus an additional 1%.
To be eligible, projects must create and/or retain at least 50 jobs. Alternatively, the projects must invest $10 million over the 5 year period. The costs eligible for the loan (excluding ongoing costs of production or operations) include:
- research and development
- equipment and machinery
- materials
- construction/facility improvements
- training
- overhead
- labour (one time only)
The terms for the loan are negotiated individually. After completing the application process, most companies receive word of the province’s decision within a relatively speedy 45 calendar days. This sometimes may take longer for the more complicated applications. The Minister of Finance, along with the Minister of Economic Development, approve or deny applications based on the guidelines of the AMIS Assessment Committee.
What’s more, for those manufacturers who regularly claim for SR&ED, receiving an AMIS loan has no impact on SR&ED eligibility. The AMIS loan is not affected if a business has already received an SR&ED return or income tax credits. Companies that have received AMIS funding often include extra cash procured by SR&ED towards their projects. In fact, any business that has received SR&ED credits is more likely to be meeting the AMIS eligibility requirements.
For more information about AMIS, visit http://www.ontariocanada.com/ontcan/en/progserv_amis_en.jsp
The proposed 2009 Ontario provincial budget, released March 26th, 2009, puts forward new tax measures intended to build on the government’s “5 point” economic plan. Understandably there is much controversy about the spending plans, and many Ontarians are expressing concern over the Sales Tax Harmonization, and how it will affect the individual.
On a positive note, there are a few bright spots for Ontario’s diverse technology sector. Most importantly, to our readers, are the changes to the Ontario Innovation Tax Credit (OITC), a tax relief measure for businesses to encourage technological development and new innovations.
Dalton McGuinty and Ontario Finance Minister Dwight Duncan (right), in Toronto on Thursday.
Ontario Innovation Tax Credit
The OITC is a 10% return for small to medium sized enterprises who perform qualifying SR&ED activities (Scientific Research & Experimental Development) in Ontario. The new budget proposes to extend the taxable income phase-out range from the current $400,000 – $700,000 to $500,000 – $800,000. This measure will parallel the changes and enhancements to the Federal Investment Tax Credit for SR&ED claims, proposed in the 2009 Federal budget.
Sustaining and Promoting Research and New Technology
Ontario’s technological advancements require continuous support. The new provincial budget is proposing more than $110 million in additional tax relief for 2009 and 2010, and $715 million in investments supporting partnerships in innovation, encouraging businesses to develop their new products, services, and processes.
These new investments are in addition to the $3 billion already to be provided by the Ministry of Research and Innovation. They will include:
- $300 million in capital funds over six years for research infrastructure, to leverage funding from the Canada Foundation for Innovation
- $100 million in extra operating funds over four years for research in the biomedical field. This funding, as well as aforementioned funds for the research infrastructure, will be delivered via the Ontario Research Fund.
- $250 million over five years for a new Emerging Technologies Fund that will put focus on clean technologies and clean energy, health and life sciences, and information and communication technologies (including digital media).
- $10 million over three years to the Colleges Ontario Network for Industry Innovation, to assist small to medium sized enterprises with applied research, technology and commercialization.
Quote for March 27th, 2009:
“The most terrifying words in the English langauge are: I’m from the government and I’m here to help.”
- Ronald Reagan
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