Economic Development Initiative (EDI): What Costs Are Eligible?

If you’re planning a project under the Economic Development Initiative (EDI), knowing which costs you can claim is critical. EDI funding is specific and structured. Claiming ineligible expenses is one of the fastest ways to delay approval or reduce your funding. For eligible organizations, EDI can cover up to 70% of project costs, but only if those costs clearly support economic development in official language minority communities.

This guide explains eligible and ineligible costs under the Economic Development Initiative, using real program rules from FedDev Ontario and related EDI streams.

Eligible Costs Under the Economic Development Initiative (EDI)

The Economic Development Initiative is delivered by regional development agencies, including FedDev Ontario, as part of Canada’s Action Plan for Official Languages 2023–2028. While details vary by region, eligible costs follow similar core principles.

1. Staffing and Professional Fees

EDI can cover human resource costs directly tied to the project, not your regular operations.

Eligible examples include:

Salaries and benefits for project-specific staff
Contracted consultants (economic development, feasibility studies, strategic planning)
Technical experts required to deliver project activities
Professional services such as legal, financial, or evaluation support related to the project

Staff time must be:

Incremental to normal operations
Tracked and documented

2. Project Delivery and Program Costs

These are the core costs required to run your approved activities.

Eligible costs may include:

Design and delivery of economic development programs
Training workshops and business support activities
Market research and feasibility studies
Sector development initiatives (tourism, clean tech, social economy)
Community economic planning and growth strategies

Projects must respond to identified needs of Francophone communities and align with EDI objectives.

3. Equipment and Capital Assets (Limited)

EDI is not mainly a capital funding program, but some equipment costs may be eligible.

Eligible examples:

Equipment essential to deliver the project
Technology needed for program delivery or service expansion
Software licenses used only for project activities

Conditions:

Assets must be directly tied to approved activities
Purchases must be reasonable and justified

4. Travel and Meeting Costs

Travel is eligible when it is necessary to deliver the project.

Eligible travel costs include:

Travel within Canada for project delivery
Mileage, accommodations, and meals at public service rates
Facility rentals for workshops or community consultations

International travel is generally not eligible unless explicitly approved.

5. Communications and Outreach

EDI recognizes the importance of reaching Francophone communities.

Eligible costs may include:

Marketing and outreach in French
Translation and interpretation services
Development of promotional materials
Website or digital tools tied to project delivery

These costs must directly support project objectives and not general brand promotion.

Funding Limits and Regional Variations

For the FedDev Ontario Economic Development Initiative (Southern Ontario):

Funding covers up to 70% of eligible project costs
Maximum funding is $500,000 per year
Funding is provided as a repayable contribution

Other regional EDI streams may offer different terms, including non-repayable contributions. Applicants should check their local agency’s guidelines for specifics.

If you need help comparing EDI streams or regional programs, GrantHub’s eligibility matcher can filter options based on your location and project type.

Costs That Are Not Eligible Under EDI

Understanding ineligible costs is just as important.

Commonly excluded expenses include:

Day-to-day operating costs not tied to the project
Core organizational salaries unrelated to approved activities
Debt repayment or refinancing
Land or building purchases
Lobbying or political activities
Costs incurred before project approval

Common Mistakes to Avoid

Including regular operating expenses
EDI only funds incremental project costs. Ongoing rent or admin costs usually don’t qualify.
Starting the project too early
Expenses incurred before written approval are typically ineligible.
Under-documenting staff time
You must clearly show how staff hours relate to approved activities.
Overestimating capital purchases
Equipment must be essential, not “nice to have.”

Frequently Asked Questions

Q: Is EDI funding repayable or non-repayable?
For FedDev Ontario, EDI funding is provided as a repayable contribution. Other regions may offer non-repayable funding. Always check your regional guidelines.

Q: Do projects need to be new to qualify?
Yes. Activities must be new or incremental, not part of your regular operations.

Q: Can post-secondary institutions apply under EDI?
Yes. French-language post-secondary institutions offering full-time programs in French are eligible applicants.

Q: Are for-profit businesses eligible for EDI?
Generally, EDI targets not-for-profit organizations and institutions that support economic development. Businesses may benefit indirectly through supported programs.

Q: How long does the approval process take?
Timelines vary based on project size and complexity, but approvals can take several months. Early planning is strongly recommended.

Next Steps

Eligible costs under the Economic Development Initiative are tightly defined. They are generous when used correctly. Strong applications clearly connect every dollar to measurable economic outcomes for Francophone communities.

GrantHub tracks hundreds of active grant programs across Canada, including regional economic development funding. Checking which programs match your organization, location, and project type can save weeks of research and prevent costly mistakes.

Economic Development Initiative (EDI): What Costs Are Eligible?