$700 million meant to create jobs over next three years and beyond
The federal government is calling on employers to apply for funding under the Jobs and Growth Fund.
Delivered by Canada's regional development agencies (RDAs), the new fund is providing $700 million to support a regional response and stimulate economic recovery following the COVID-19 crisis by investing in projects that will help to create jobs over the next three years and beyond. This includes up to $70 million dedicated to businesses created after January 2020 that meet eligibility criteria.
"By investing in our job creators and the organizations that support them, the Jobs and Growth Fund will help to create quality jobs, pursue inclusive and clean growth opportunities, and empower businesses and communities from coast to coast to coast,” says Mélanie Joly, minister of economic development and official languages.
Eligible businesses could normally receive interest-free repayable contributions for up to 50 per cent of authorized costs. Eligible not-for-profit organizations could normally receive non-repayable contributions for up to 90 per cent of authorized costs. Indigenous-led organizations or businesses may be eligible to receive up to 100 per cent of eligible project costs.
Recently, the federal government announced it is investing over $44 million through the Natural Resources Canada’s Science and Technology Internship Program (STIP), and called on employers interested in hiring youth for green jobs to apply for support.
The Job and Growth Fund will help job creators and the organizations that support them future-proof their businesses, build resiliency and prepare for growth by:
- supporting the transition to a green economy
- fostering an inclusive recovery
- enhancing Canada's competitiveness through digital adoption to improve productivity and manufacturing processes
- strengthening capacity in sectors critical to Canada's recovery and growth
The government is accepting applications on a continuous intake basis until March 31, 2024, or until funding is fully committed.
The new funding from the government received positive feedback from stakeholders.
“Very exciting new program from @melaniejoly and the government for SMEs who are in recovery, and ready to grow and create jobs. Growth and investment in new opportunities must be a priority for Canada in the post-pandemic economy,” tweeted the Canadian Chamber of Commerce.
“Through a regional approach, this support for businesses from coast-to coast-to coast will contribute directly to sustainable job creation, and will help build an innovative, prosperous and inclusive economy of the future,” says Deborah Yedlin, president and CEO, Calgary Chamber of Commerce.
In May, the national hiring rate in Canada surpassed pre-pandemic levels, according to a LinkedIn report, and employment rose by 231,000 (1.2 per cent) in June, following a cumulative decline of 275,000 over the previous two months.