BDC first up with FedDev funding for Southern Ontario

The Business Development Bank of Canada (BDC) is investing $50 million in early stage firms and venture capital funds under the umbrella of the recently created federal economic development program for southern Ontario. The funding will provide $35 million for early-stage investments and $125 million for venture capital funds with BDC collaborating with the Ontario Venture Capital Fund (R$, June 20/08) to determine which investments hold the most promise. Last month, the federal government launched the Federal Economic Development Agency for Southern Ontario (FedDev), which received a $1-billion, five-year commitment in the last federal Budget. Responsibility for FedDev falls to Gary Goodyear, minister of state for S&T and its first president is Dr Bruce Archibald, a veteran senior bureaucrat in the Ontario and federal governments. For FY09-10, FedDev will spend $206 million, which includes operating costs and focuses on three priority areas: economic development, diversification and community development. Its core program — South Ontario Development Program — has a first-year budget of nearly $100 million. Other programs administered by or in conjunction with FedDev include a Community Adjustment Fund, Community Futures Program, and the Industrial Research Assistance Program, which has $95 million to boost the innovative capacity of smaller firms...