CAP: Section C Who can Apply?
Eligible applicants for cost-share funding assistance under CAP must be either an organization or a collaboration, as defined below, unless otherwise stated in the Project Categories found in Appendix 1.
Organizations are any not-for-profit, Ontario-based (located in Ontario and, where applicable, have a membership composed primarily of Ontario residents/businesses/organizations) legally recognized entities that are involved in the agriculture, agri-food and agri-products sector and are capable of entering into a funding agreement.
Federal, provincial and territorial government departments, ministries or agencies, and academic/research institutions are not eligible to apply as organizations.
When an organization is the applicant, cash and in-kind contributions can be contributed by both the organization and its partner(s) in the project. A project partner is a legally recognized entity contributing cash or in-kind towards the project. Project partners must have an arm’s length relationship* (see details below) from the organization. Project partners are required to provide a letter of support to AAC confirming their contribution towards the project.
Collaborations are combinations of two, or more, legally recognized entities in the agriculture, agri-food and agri-products sector that are primarily located in Ontario. Entities may include, but are not limited to: for-profit businesses, not-for-profit associations/organizations, and/or academic/research institutions.
Collaborations must have a lead applicant, and all collaboration members must be actively and directly engaged in the project and have a vested interest (i.e. financial investment, resources, project oversight, expertise, outcomes, etc.) in the project.
Collaboration funding is intended for projects that support the competitiveness and resiliency of the agri-food and agri-products sector in the province.
Responsibilities of the lead applicant include:
- be an organization or business located in Ontario
- be the primary point of contact with the AAC
- enter into a legal agreement with the AAC on behalf of the other collaboration members
- manage the project
- cash flow all project costs (note: this includes collecting cash contributions from collaboration members/partners and incurring all costs)
- provide the required documentation to the AAC for reimbursement funding
- prepare progress and final reports
- be in receipt of CAP funding for the collaboration and receive a T4A for the total funds issued
- share project information with all collaboration members
Responsibilities of the collaboration members include:
- having an arm’s length relationship* (see details below) from the lead applicant and from the other collaboration members
- be actively and directly engaged in the project
- having a vested interest (i.e. financial investment, resources, project oversight, expertise, outcomes, etc.) in the project
- sign and submit a Collaboration Member Declaration form found at www.adaptcouncil.org/program/cap
Collaboration members cannot provide third-party services on the project.
Organizations and other entities located outside of Ontario and national organizations may be a collaboration member, as long as the supply/value chain is primarily located in Ontario. The project outcomes must demonstrate benefit to the Ontario agriculture, agri-food and agri-products sector.
*Arm’s Length Relationship Details for Collaboration Members
Collaboration members are at arm’s length if they are not related or affiliated persons or otherwise controlled by another member or members. Two, or more, collaboration members are related if they are controlled by individuals who are related, such as by blood, marriage, adoption, common-law partnership, or in a relationship of some permanence if they are the natural or adoptive parents of a child, or where they are business partners within the meaning of the Partnerships Act.
A collaboration member, that is a corporation, is controlled by another person who is a member if:
a) that person holds voting securities of the corporation to which are attached more than 50 per cent of the votes for the election of directors of the corporation, other than by way of security only, or that person is otherwise entitled to elect or appoint more than 50 per cent of the directors of that corporation;
b) that person otherwise is entitled by contract or under the articles or letters patent of the corporation to elect or appoint a majority of the members of the board of directors; or
c) that corporation is a subsidiary of a corporation that is controlled by that person within the meaning of clause a) or b)
A collaboration member, that is a corporation, is affiliated with another member that is a corporation if:
- one of them is the subsidiary of the other;
- both are subsidiaries of the same body corporate; or
- each of them are controlled by the same person
In order to be eligible, each applicant must be in compliance with all Requirements of Law and agree to remain in compliance with all Requirements of Law for the duration of the project. “Requirements of Law” means all applicable requirements of law, as may be set out in statutes, regulations, by-laws, codes, rules, ordinances, official plans, approvals, permits, licenses, authorizations, decrees, injunctions, orders and declarations, or any other similar requirement of law.
Refer to Section 251 of the Income Tax Act for the detailed statutory provision for determining arm's length relationships.
Further eligibility for the Aquaculture, Equine, Tobacco, Ornamentals, Heath/Nutrition Supplements, Pet Food Sectors and Broader Agri-Business Sectors can be found in Appendix 2.