If you’re planning a major expansion in eastern Ontario, the Eastern Ontario Development Fund (EODF) business project loans can help cover part of your costs. This program supports large, job-creating projects—but only certain expenses qualify. Knowing what counts as an eligible expense can save you time and help you build a stronger application from the start.
The EODF offers repayable funding of up to $5 million. It can cover up to 15% of eligible project costs for approved business projects.
The Eastern Ontario Development Fund supports projects that grow the regional economy through investment, productivity, and job creation. Your expenses must be directly tied to an approved business project and incurred after your application is submitted.
According to program guidelines, eligible expenses typically include:
Capital equipment and machinery
New equipment used to expand production, improve productivity, or introduce new processes. This often includes advanced manufacturing or automation equipment.
Facility construction or expansion costs
Costs related to building, expanding, or upgrading a facility in eastern Ontario, as long as they support the approved project.
Technology and innovation investments
Software, systems, or technology that improve efficiency, support innovation, or enable new products or services.
Skills development and training tied to the project
Training costs required to support new equipment, processes, or technologies introduced through the project.
Project-related professional services
Engineering, technical, or specialized consulting services that are essential to implementing the approved project.
The program requires a minimum project investment of $500,000. For rural Ontario businesses, the minimum investment is $200,000. Only the eligible portion of that investment is used to calculate your loan amount.
GrantHub’s eligibility matcher makes it easy to check if your project and expenses fit EODF criteria before you apply.
Some costs are commonly assumed to qualify—but don’t. These expenses are usually ineligible under EODF business project loans:
Working capital or operating expenses
Day-to-day costs like rent, utilities, inventory, or payroll unrelated to new jobs.
Refinancing or debt repayment
The fund does not cover existing loans or past financial obligations.
Costs incurred before application approval
Expenses made before submitting your application are generally not eligible.
Land purchase
Buying land alone is typically excluded unless it’s part of a larger, approved construction project.
Marketing or sales expenses
Advertising, branding, and general sales costs are usually not eligible unless directly tied to an approved expansion activity.
Always confirm expense eligibility in advance, as ineligible costs cannot be retroactively approved. GrantHub’s grant comparison tools can help you avoid common mistakes and focus on programs that fit your planned expenses.
The Eastern Ontario Development Fund provides repayable loans, not grants. Key funding rules include:
For example, if your eligible project costs total $2 million, the maximum EODF contribution would be $300,000 (15%). The remaining costs must be funded through your business or other sources.
Including operating costs as eligible expenses
Only project-specific investments qualify. Regular business expenses weaken your application.
Starting the project too early
Expenses incurred before you apply are usually ineligible.
Underestimating the minimum investment requirement
Projects below $500,000—or $200,000 for rural businesses—do not qualify, even if they create jobs.
Not tying expenses to job creation
The program requires a commitment to create at least 5 new jobs, or a 30% increase for smaller firms.
Q: Is the Eastern Ontario Development Fund a grant or a loan?
The EODF provides repayable loans, not grants. Funding covers up to 15% of eligible project costs and must be repaid under agreed terms.
Q: How much funding can my business receive?
Eligible businesses can receive up to $5 million, depending on project size and eligible expenses.
Q: What qualifies as eastern Ontario?
Your business must be located in, or planning to locate in, an eligible eastern Ontario community. Location eligibility is assessed during the application review.
Q: Can rural businesses apply with fewer employees?
Yes. Rural Ontario businesses can apply with at least 5 employees and a lower minimum project investment of $200,000.
Q: Are EODF loans taxable?
Loan funds are generally not treated as taxable income, but repayment terms and accounting treatment can vary. Speak with your accountant for advice specific to your business.
The Eastern Ontario Development Fund rewards well-planned projects with clear, eligible expenses and strong job creation. Before applying, map each cost directly to your expansion plan and funding requirements.
GrantHub tracks hundreds of active grant and loan programs across Canada—including Ontario regional funds—so you can check which ones match your business profile before you commit time to an application.
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