Ontario Launches New $10 Million Rural Ontario Development Program 

The Ontario government has recently unveiled a significant initiative to bolster the prosperity of its rural communities. Announced at the 2025 annual Rural Ontario Municipal Association (ROMA) conference, the province introduced the Rural Ontario Development Program, committing $10 million in annual funding to support economic growth, enhance workforce capacity, and foster business development in rural areas. 

As part of this strategy, the government has replaced the previous Rural Economic Development (RED) program with the new Rural Ontario Development Program, doubling its funding to $10 million per year for the next two years, totaling $20 million. 

“Our government believes in and is committed to enabling opportunity, which is the foundation from which we built Ontario’s rural economic development strategy. Our plan to support rural Ontario reflects how our entire government is working together to ensure our programs and policies enable strong and dynamic rural communities.” 
– Lisa Thompson, Ontario’s Minister of Rural Affairs  

 

Funding Snapshot: New Rural Ontario Development Program 

Objective:  

• Support economic growth, enhance workforce capacity, and foster business development in rural communities. 

Eligibility:  

• Rural municipalities, Indigenous communities, and not-for-profit organizations. 

In the previous RED program, funding streams included the:  

• Economic Diversification and Competitiveness Stream: Provides up to 50% of eligible project costs, to a maximum of $150,000. 
• Strategic Economic Infrastructure Stream: Offers up to 30% of eligible project costs, to a maximum of $250,000. 

Timeline:  

• The previous RED program is now closed. The new Rural Ontario Development Program guidelines and application will be available in late winter 2025. 

Application Process:  

• Details will be announced; interested organizations can sign up for our weekly newsletter to stay updated on announcements. 

The Importance of Investing in Rural Communities 

Investing in rural communities in Ontario is essential for fostering economic growth, enhancing quality of life, and ensuring long-term sustainability. Rural areas contribute significantly to the province’s economy through agriculture, manufacturing, tourism, and resource industries. However, these communities often face unique challenges, such as limited infrastructure, workforce shortages, and reduced access to essential services like healthcare and education.  

By prioritizing strategic investments in these regions, the government and private sector can help bridge these gaps, stimulate local economies, and create vibrant, self-sustaining communities. 

“Our government is working with municipalities and First Nations to ensure they have the support they need to maintain crucial water infrastructure assets and promote housing growth in their communities. Proper maintenance of our water and wastewater infrastructure is critical for protecting our homes and businesses and ensuring communities have access to clean drinking water.” 
– Kinga Surma, Ontario’s Minister of Infrastructure  

Investing in rural Ontario is not just about economic growth; it is about creating resilient, inclusive communities where residents have access to the opportunities and services they need to thrive. By addressing infrastructure, healthcare, education, business development, and sustainability, Ontario can build a stronger, more connected province for everyone. 

Explore Similar Government Funding Opportunities 

In addition to the new Rural Ontario Development Program, several other government funding programs are available to support rural economic development: 

Southwestern Ontario Development Fund (SWODF) 

SWODF supports businesses investing in new facilities and equipment to advance regional priorities. Eligible companies can receive up to 15-50% of expenses, with a maximum of $500,000 to $5 million in grant or loan funding, depending on the stream.  

Eastern Ontario Development Fund (EODF) 

Similar to SWODF, the EODF supports economic development in Eastern Ontario by assisting businesses investing in infrastructure or implementing strategies to advance regional priorities. Funding covers up to 15-50% of project expenses, with a maximum of $500,000 to $5 million in grant or loan funding, depending on the stream. 

How to Leverage Government Funding Opportunities 

To maximize the benefits of these programs, rural municipalities, Indigenous communities, and not-for-profit organizations should: 

• Stay Informed: Regularly monitor official government funding updates and communications for updates on application deadlines and eligibility criteria. 
• Prepare Thorough Applications: Clearly outline project objectives, expected outcomes, and alignment with program goals. 
• Seek Expert Guidance: Consider consulting with professionals experienced in government funding to navigate the application process effectively. 

For comprehensive information on available government funding programs and assistance with applications, visit our Government Funding Directory.