Parameters for CAF funding broaden

January 11, 2010

Funding is now available to local municipalities, businesses and non-profit organizations through Intake Two of the Community Adjustment Fund.
Elgin-Middlesex-London MP Joe Preston, who is also the caucus chair for Southwestern Ontario, took part in the announcement of the funding with the Honourable Gary Goodyear, Minister of State (Federal Economic Development Agency for Southern Ontario). Overall funding for the second intake process is $127.8 million in 2010-11.

Small and medium-sized enterprises (less than 1,000 jobs), not-for profits, Aboriginal organizations, college and universities are all eligible to submit proposals. Applications for funding will be accepted from Dec. 15 to Jan. 18, 2010.

"I encourage all eligible organizations to apply for funding through the Community Adjustment Fund," said Haldimand-Norfolk MP Diane Finley. "This expanded intake process could help people, organizations and businesses in our local communities prosper now and in the future."

Preston explained the first round of Community Adjustment Fund was targeted at communities under 250,000 people. This time the priority is on communities of less than 100,000 people, which are single industry towns. He counted St. Thomas into that category and figured Tillsonburg would be also.

New this time is businesses will be allowed to apply for the funding. Preston said this decision was intended to create more job stimulus. He was quick to emphasize this wasn't saying the municipal funding from the first round wasn't creating jobs, but more are needed. Businesses that are successful in receiving funding will be granted repayable loans at 0% interest. The maximum funding allowed is at 50% of the value of the project.

"They (applications) have to be in areas where there is need and they create jobs," Preston said, adding job creation will be a main criteria. "For the numbers of dollars we're putting in how many jobs are they creating?"

He expected there would be announcements on which applicants were successful shortly after the deadline, as applications will be researched as they come in.
Asked if there would be a third round of CAF funding, Preston answered, "We said we would create funding as it was needed. Now we're focused on single industry communities with less than 100,000 people. After this we may be done. It's hard to guess. There might be one more smaller one."

Preston said there are signs of recovery in the economy, such as house sales being as good as two years ago. But, on the flip side, he said there are still a lot of people in this area out of work.

"We may not yet quite be there, but we're not getting worse," he said. Winter will tell.

"There are parts of the economy that are moving forward. There are parts that are limbering forward and there are parts that haven't moved yet. The job creation part may be lagging behind and hopefully this will get it going."

CAF is one of a series of initiatives, unveiled as part of the Economic Action Plan, to help communities address the short-term challenges from the economic downturn and prepare them for long-term growth.

More information on the program is available from your local MP's office.