Program information

On this page

• Program objective
• Financial assistance
• What can be funded (eligible activities and costs)
• What cannot be funded (ineligible activities and costs)
• Other funding considerations

Program objective

The CEDD program supports economic development initiatives that help communities across the Prairies grow and diversify. Through this program, PrairiesCan enables communities to leverage their capacity and strengths to:

• sustain and grow their economies
• respond to economic development opportunities
• adjust to changing and challenging economic circumstances
• build inclusive economies that support:
  • Indigenous peoples
  • women
  • youth
  • entrepreneurs with disabilities
  • official language minority communities (OLMC)
  • other underrepresented groups

The CEDD program advances PrairiesCan’s strategic priorities.

Financial assistance

The CEDD program generally provides non-repayable contributions by reimbursing costs that successful applicants have paid.

Note, projects that are commercial in nature, such as those that directly enhance or develop products or services sold in the marketplace (in other words, generate revenue), are typically repayable contributions. Repayable contributions are normally repaid at 0% interest over 5 years in monthly installments beginning 1 year after the project end date.

PrairiesCan considers all other sources of funding available to the applicant. We give preference to projects that leverage funding from all levels of governments, the private sector and other non-government sources (non-PrairiesCan funding typically should represent at least 50% of total project costs).

What can be funded (eligible activities and costs)

Eligible activities

Eligible project activities help develop and diversify the Canadian Prairies economy. The economic and/or employment benefits resulting from these activities should accrue primarily within the Prairies (Alberta, Saskatchewan and Manitoba).
Examples of eligible activities include:

• Community Development – includes activities to stimulate economic growth or diversification that capitalize on community capacity, strengths and opportunities.
• Community Adjustment – includes activities to support Prairie communities facing economic shocks, challenging economic circumstances and/or depressed economic conditions.
• Inclusiveness - includes activities that help women, youth, Indigenous Peoples, persons with disabilities, official language minority communities and other underrepresented groups participate in the economy

Eligible costs

Supported costs must be reasonable and necessary for project implementation. They must also be incremental, meaning that they are beyond the normal operating boundaries of an organization and are directly attributable to implementing the project. Examples of eligible costs we can support include:

• operations, maintenance
• personnel: salary and benefits
• equipment purchase and lease
• information management and information technology acquisitions
• legal, administrative, accounting, licensing, permits and consulting fees
• rents, leases and leasehold improvements
• acquisitions of proprietary processes
• interest charges, insurance, fees and taxes
• supplies and transportation
• capital improvements related to projects

Applicants are encouraged to consider Canadian materials and content, where such materials and content are competitive and available.

What cannot be funded (ineligible activities and costs)

Costs that are deemed unreasonable, not incremental, and/or not directly related to project activities will be ineligible for reimbursement. These include, but may not be limited to:

• refinancing of existing debt
• costs of amortization
• land and building acquisition
• contingencies and goodwill

Costs incurred prior to the project’s proposed start date are ineligible. Costs incurred prior to submitting an expression of interest also cannot be covered.

Project costs incurred without a signed funding agreement with PrairiesCan are at the sole risk of the applicant.

Other funding considerations

Financial assistance from government programs may have tax implications for an organization. Be advised that it might be treated differently than grants and loans from other sources. We recommend that applicants get advice from a qualified tax professional.

Talk to your accountant and/or the Canada Revenue Agency to understand how CEDD funding could affect your taxes or other current or future funding agreements.