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 1
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 ? August, 2012 Page 2
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 August, 2012 Page 3
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) August, 2012 Page 4
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 5
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 August, 2012 Page 6
How is it Managed – CFDC coverage in Southern Ontario SOFII Regional Offices August, 2012 Page 7
How is it Managed – East SOFII Team Administrator August, 2012 Page 8
How does it Work - Loans Review Process 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 August, 2012 Page 9
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 . August, 2012 Page 10
How does it Work - Investment Review Committee • 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 August, 2012 Page 11
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 August, 2012 Page 12
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 50% 50% 50% 50% from Client % Estimated Impact on Sales 10% 10% 10% 10% % Jobs Created 55 60 6 121 Jobs Maintained 100 105 0 215 August, 2012 Page 13
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 14
Thank you! August, 2012 Page 15
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