Targeted Manufacturing Initiative for Northern Ontario – Productivity Improvements
Boost your factory's efficiency with up to 33% of capital costs and 50% of non-capital costs covered. This is a repayable contribution, so you will pay it back, and you must cover the full assessment cost upfront before claiming your share. Verified against the official source on July 2, 2026; funding may be fully allocated, so confirm before applying.
How we verify funding records →
“Generally, FedNor will contribute up to 33% of eligible capital costs and up to 50% of eligible non-capital costs.”
Before you spend a dollar
Approval must come BEFORE you spend or start; costs incurred prior to approval are not eligible for reimbursement unless you obtain written consent from FedNor.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Not sure if you qualify?
Get a free, 2-minute read on whether this program fits your business. No obligation.
Check your fit →Is this for you?
- You are an established manufacturer based in Northern Ontario.
- Your core business is making commercial products.
- You are planning growth and need an expert assessment to boost productivity or quality.
Probably not the right fit if
- You are not a manufacturer, such as running a restaurant, retail store, or service clinic.
- Your business is located outside of Northern Ontario.
- You have already paid for the assessment without prior written consent from FedNor, since pre-approved costs are excluded.
How much you'd realistically get
Up to 33% of eligible capital costs and up to 50% of eligible non-capital costs, with no published dollar cap.
What may be supported
- Operational assessments conducted by qualified experts.
- In-depth examinations involving operational efficiencies.
- Assessments focused on productivity, process flow, quality, waste reduction, environmental impact, energy efficiency, information systems, lean manufacturing, Kaizen, Six Sigma, 5S principles, human resources, management systems, market analysis, and ITB readiness.
What's excluded or restricted
- land, building, vehicles, marketing, studies, overhead, depreciation and salaries
- Costs for which the applicant has entered into a legal commitment/incurred prior to the eligibility date
How applying works
Effort: moderateYou must discuss your proposal with a FedNor Officer, create a portal account, and provide detailed project information along with financial statements for the past three years.
- 01Call 1-877-333-6673 to discuss your proposal with a FedNor Officer.
- 02Create an account or sign in to the FedNor Client Portal using GCKey or Canadian online banking service.
- 03Submit the application via the FedNor Client Portal.
- 04Provide detail regarding operational improvements, how the project was identified, and how it will improve operations.
- 05Provide evidence of capacity to implement the project, including financial statements for the past three years (or interim statements if the last year-end is more than six months past).
Who to ask: 1-877-333-6673 or fednorcrmsupport-soutiencrmdefednor@fednor.gc.ca (for portal questions); contact a FedNor officer for project advice.
Documents commonly required
- Financial statements for the past three years (or interim statements if the last year-end is more than six months past).
- Detailed project description outlining operational improvements and how the project was identified.
- Evidence of capacity to implement the project.
- Proof of arm's-length services for eligible costs.
How BBN Labs helps
- BBN helps you scope the technology questions for the expert-led operational assessment this program funds, so the review covers your real gaps.
- BBN builds the software workflows and sets up digital tools that implement the assessment recommendations for leaner operations.
- BBN trains your staff on the new systems and coordinates qualified partners for any physical equipment upgrades.
- BBN guides you through the application process and deadlines so you don't lose the funding.
What to know before you count on it
- You must pay the full cost of the assessment first and then claim your share back, so you need the cash flow up front.
- Because this is a repayable contribution (money you pay back), it is generally not taxable income the way a grant would be; confirm with your accountant.
- Applications are reviewed by FedNor Officers, and the budget may be limited; apply early to avoid waiting for the next round.
- Eligible costs must be for arm's-length services; non-arm's-length services are excluded.
What are your odds?
If you qualify and follow the rules, approval is usually not a contest, but the real risks are starting too early, an incomplete application, or the budget being committed.
Frequently asked questions
Can I claim costs I have already incurred?
No, costs incurred prior to approval are not eligible unless you obtain written consent from FedNor.
Is the grant money taxable?
This is a repayable contribution, money you pay back, not a grant, so it is generally not taxable income the way a grant would be. Confirm with your accountant.
What types of assessments are eligible?
Eligible assessments include productivity, process flow, quality, waste reduction, environmental impact, energy efficiency, information systems, lean manufacturing, Kaizen, Six Sigma, 5S principles, human resources, management systems, market analysis, and ITB readiness.
Do I need to pay an application fee?
No application fee is published.
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What you can combine it with
Confirm on the official page if this grant can be stacked with other federal or provincial funding.
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Worth reading before you apply
Get alerted when this changes
Programs open and close, budgets run out, rules change. We send one short email when something changes that matters for this program.
Record last updated June 14, 2026; last verified July 2, 2026 against the official source. Source: official program page.