Supported by the Federal Economic Development Agency for Southern - - PowerPoint PPT Presentation

August, 2012 Page 1

Supported by the Federal Economic Development Agency for Southern Ontario Avec l’appui de L'Agence fédérale de développement économique pour le Sud de l'Ontario

August, 2012 Page 2

Let’s Cover the Following:

• What is SOFII ?
• Who is it For ?
• How is the Program Managed?
• How does it Work ?
• What does Success Look Like ?

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What is SOFII - Introduction

SOFII stands for “Southern Ontario Fund for Investment in Innovation” SOFII is:

• A Federal Government program, funded by the Ministry of Industry
• A $20 Million Loan Program
• Available in Southern Ontario to SMEs
• Intended to create Jobs and increase the Economic Diversification and

Competitiveness of communities

• Targeted at innovative companies in the knowledge based industries

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What is SOFII - Overview

• $20 M Loan Fund: $12 M allocated to South West Ontario; $8M

allocated to South East Ontario

• Self-Sustaining Fund
• Objective: Job Creation and Support for New Products, Services,

Technologies and Processes

• Repayable Loans
• Administered by 2 Regional Organizations
• Includes all Rural and Urban areas (Toronto, Ottawa, and

Kingston in the East)

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What is SOFII – Target Market

• For-Profit companies in the Knowledge Based Industry Sectors
• Small to Medium Size Establishments (SMEs)
• Innovative Firms facing Growth Challenges
• Late stage commercialization;
• New product or service development;
• New applications or markets; or
• Development or implementation of new processes or technologies

August, 2012 Page 6

Who is it For – Eligibility

Criteria

Eligible applicants are innovative Small and Medium-sized Enterprises (SMEs) located in Southern Ontario’s rural and urban communities that:

• Employ 50 to 500 employees, or identify that there is a strong likelihood they

will reach 50 employees within the term of the loan

• Demonstrate job creation/retention for Southern Ontario residents
• Establish a reasonable expectation of economic viability
• Have secured the necessary participation of other financial support
• Provide evidence of their ability or experience to operate the business
• Demonstrate the ability to repay funds
• Have the ability or experience to operate the business
• Demonstrate that their project is innovative

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How is it Managed – CFDC coverage in Southern

Ontario

SOFII Regional Offices

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How is it Managed – East SOFII Team

Administrator

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1. Statement of Interest is submitted by client 2. SOI reviewed by staff for eligibility 3. Client informed whether to proceed to full application and provided with counseling pertaining to SOFII and other sources of support 4. Client submits full application 5. Administrative staff check for application completeness and begin due diligence analysis 6. Staff seek 3rd party expert advice as needed 7. Staff make formal recommendation to Investment Review Committee 8. Investment Review Committee reviews application and makes the decision to approve/decline or defer 9. EOCFDC Network Inc. Board ratifies decision of the Investment Review Committee 10. Application decisions are communicated to the client, including formal written notification in all cases 11. Loan security arranged, loan disbursed

How does it Work - Loans Review Process

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How does it Work - Loan Application

Qualified Applicants will be invited to complete a Business Loan Application which may include, but is not limited to the following:

• Business Plan
• 3-yrs of Accountant Prepared Financial Statements
• Technical assessments, Reviews or Third Party Valuations
• Personal statement of affairs
• Business bank/credit information
• Disclosure and release statement
• Acknowledgement of the Regional Office privacy statement
• List of business assets

Loan Applications and supporting documentation will be reviewed and applicants will be notified of decisions including written notification.

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• 7 – 9 members
• 4-5 represent CFDCs; 3-4 represent outside experts
• Chair is a CFDC representative
• Current Committee is 7 members:
• Geographically – Ottawa, Kingston, GTA, Pembroke,

Perth, Brockville, Belleville

• Experience: Banker, Lawyer, Scientist, Academia.

Business, Government

• Monthly Meetings to Review SOFII Loan Applications
• Ratification by Board of Directors

How does it Work - Investment Review

Committee

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What does Success Look Like? - Success

• Increased diversification of Southern Ontario communities
• Increased competitiveness of Southern Ontario communities
• Creation of greater innovation in the local economies
• Creation of more high value jobs
• Number of jobs created and/or maintained through Innovation
• New technologies, new processes, new skills adopted
• Number of new partnerships and collaborations formed

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What does Success Look Like? - Metrics

Metric

Year 1 Year 2 Year 3 Total

Applications

20 25 30 75

SMEs Supported

15 15 1 31

Leveraged Investment from Client %

50% 50% 50% 50%

Estimated Impact on Sales %

10% 10% 10% 10%

Jobs Created

55 60 6 121

Jobs Maintained

100 105 215

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Your SOFII Contacts

Eastern Ontario Regional Office Carol A. Armstrong, Executive Director
 351 Charlotte Street, Peterborough ON K9J 2W1
Phone: 705-741-1980
Email: info@eocfdc.ca
Web: www.eocfdc.ca Western Ontario Regional Office Rory Ring, Director
109 Durand Street, Sarnia, ON N7T 5A1
Phone: 519-383- 1371
Email: rring@wocfdca.com
Web: www.wocfdca.com

August, 2012 Page 15

Thank you!