FedNor's Business Scale-up and Productivity (BSP): who qualifies and what it funds

A Northern Ontario program that can contribute up to $500,000 toward growth, technology adoption, and productivity projects — how it works and how to apply.

Business Scale-up and Productivity (BSP) is a FedNor program that provides repayable contributions of up to $500,000 to established Northern Ontario businesses to accelerate growth, adopt technology, enter new markets, and improve productivity. It covers up to 50 percent of eligible project costs, so a business contributes at least half. It is not a grant — the contribution is repaid on terms set in the agreement — and intake is continuous but the program currently has limited budget due to high demand. Confirm your eligibility directly with FedNor before you plan around it.

What BSP funds

BSP is built for projects that help an existing business scale and become more productive: adopting new technology, automating or digitizing operations, expanding capacity, and entering new markets. FedNor specifically notes it is well-suited to technology adoption and digital transformation projects — which is where an AI or systems investment tends to fit. The point of the program is a measurable step up in the productivity or growth of a real, operating business, not a first-time startup idea.

Who qualifies

Applicants must be incorporated small and medium-sized enterprises, and Indigenous (First Nation, Metis, Inuit) businesses and organizations are eligible. The project's benefits must accrue to Northern Ontario. You are normally expected to demonstrate a sustainable business model supported by at least two years of operations, plus the financial and managerial capacity to carry the project. Retail and service-based businesses are not considered under this program — it is aimed at businesses producing or scaling something beyond local retail or service delivery.

How much you can get — and the repayable catch

The contribution is up to 50 percent of eligible and supported project costs, to a maximum of $500,000 per project. Total government funding is capped at 75 percent of supported eligible non-capital costs and 50 percent of eligible capital costs. Two things matter here. First, the awarded amount is based on the minimum required for the project to proceed — FedNor funds the gap, not the wish list. Second, it is repayable: repayment terms are set when the contribution agreement is developed and normally begin no later than one year after the project is complete. Treat BSP as low-cost, patient financing for a growth project, not free money.

Is BSP a fit for an AI or systems project?

Often, yes. A project that automates a manual process, digitizes operations, or adds capacity through technology is exactly the kind of productivity improvement BSP exists to support — and up here, FedNor funding is a regional advantage a southern competitor cannot access. The test is whether the work makes an established Northern Ontario business measurably more productive or able to scale. If it does, and you can carry your share of the cost, it is worth a conversation before you commit your own capital.

How to apply

FedNor asks you to call 1-877-333-6673 to discuss your proposal with a FedNor Officer before applying, or to start through its online application portal. Because the budget is limited, that early conversation matters — an officer can tell you whether your project and timing are a realistic fit before you invest in a full application. As with every program in our funding radar: confirm eligibility, amounts, and current intake with the program itself, because these change.

Is BSP a grant?

No. BSP is a repayable contribution, not a grant. You receive funding up front toward eligible costs, then repay it on terms set in the contribution agreement. That still makes it attractive — it is patient, low-cost financing tied to a growth project — but plan for repayment, not a giveaway. If you need non-repayable funding, other programs in the radar (or a tax credit like SR&ED) may fit better.

Can a brand-new business apply?

Generally no. BSP normally expects a sustainable business model supported by about two years of operations, so it is aimed at established businesses rather than pre-revenue startups. Early-stage founders in Northwestern Ontario should look at startup-focused programs and accelerators instead — several are listed in the funding radar.

Source: FedNor — Business Scale-up and Productivity (BSP), Northern Ontario, Regional Economic Growth through Innovation (fednor.canada.ca/en/our-programs/regional-economic-growth-through-innovation-regi/business-scale-and-productivity-northern-ontario). Program details, amounts, and intake status can change — confirm directly with FedNor at 1-877-333-6673. This is general information, not funding advice.