Federal Budget 2009 Initiative
Community Adjustment Fund (CAF)

Thank you to all applicants that submitted for the June 26th intake deadline. The Community Adjustment Fund is no longer receiving applications - applicants will be contacted in late July and early August.

Overview

The Community Adjustment Fund (CAF) will provide $1 billion over two years to address the short-term economic needs of Canadian communities impacted by the global recession. The national fund will provide an economic stimulus by supporting projects that create jobs and maintain employment in and around communities that have experienced significant job losses and lack alternative employment opportunities.

CAF is part of Canada's Economic Action Plan, the Government of Canada's plan to ensure a quick recovery from the current economic downturn. By focusing on the creation of short-term employment to support communities and the sectors that contribute to their viability, CAF will play a distinctive role in relation to other economic stimulus measures included in Canada's Economic Action Plan.

Western Economic Diversification Canada (WD) will implement the fund in the four western provinces, investing $306 million to help communities reduce the short-term impacts of the economic downturn. The primary goal of CAF is immediate job creation.

What is the status of the Community Adjustment Fund?

Applications for the CAF program are now being accepted and are due by June 5, 2009. Projects needing more time to be developed must be submitted by June 26, 2009. Consistent with the Government of Canada's commitment to taking swift action to stimulate Canada's economy, WD will review and respond to applications as quickly as possible.

Project Requirements

What kinds of projects are eligible for funding?

Projects funded under CAF must:

• Be completed by March 31, 2011 with no requirement for continued support;
• Provide benefits to communities affected by the global economic recession;
• Create immediate, short-term employment;
• Be able to start quickly; and,
• Be incremental (funds should be in addition to existing resources and not replace funding available elsewhere).

In addition, priority will be given to projects in and around eligible communities that:

• Are located in rural, single-industry communities;
• Create jobs and maintain employment;
• Leverage funds from provinces, territories and other funding partners;
• Build on partnership arrangements already in place (e.g. federal-provincial/territorial agreements) and existing programs; and,
• Provide a legacy of longer-term economic benefits.

Projects that cannot be supported under CAF include:

• Direct transfers of funds to workers;
• Investments in slaughterhouse capacity.
• Projects that are eligible for funding under any federal infrastructure program will not normally be considered for funding under the Community Adjustment Fund;
• Projects undertaken by private for-profit entities that are not consistent with the Canada-US Softwood Lumber Agreement.

Who is eligible to apply for project funding?

Entities eligible to apply for funding under CAF include:

• Not-for-profit organizations;
• *For-profit organizations (incorporated, sole proprietorships, partnerships or other legally established businesses)
• Post-secondary education institutions;
• Co-operatives;
• Indian Bands;
• Provincial government departments, agencies and crown corporations; and
• Municipal governments and organizations created by them.

* Contributions to for-profit organizations may be made on a repayable basis.

How will projects be assessed?

Priority will be given to projects in and around eligible communities that:

• Are located in rural, single-industry communities;
  
• Create jobs and maintain employment;
  
• Leverage funds from provinces, territories and other funding partners;
  
• Build on partnership arrangements already in place (e.g. federal-provincial/territorial agreements) and existing programs; and,
  
• Provide a legacy of longer-term economic benefits.

Applications from eligible communities will be assessed against the priority criteria listed above.

What costs are eligible?

In order to be eligible for CAF funding, costs incurred by recipients must be reasonable, incremental and directly attributable to activities necessary to achieve desired results. Examples of eligible costs include:

• Operating : personnel, administration, consulting fees and supplies.
• Capital: equipment purchases and leases, Information Management and Technology (IMT) acquisitions and capital improvements.
• Other costs that are reasonable, incremental and directly attributable to activities necessary to achieve desired results, as specified by the agreement.

Reasonable expenses, are those that are necessary for completion of the project. Only costs that are directly related to the eligible activities will be allowed.

This summary was prepared by Northern Development to assist in evaluating eligibility for this potential funding source. This webpage does not contain enough information to prepare an application. Northern Development will be delivering this program within its geographic region; however, in case of discrepancies between this summary and information provided by Western Economic Diversification (WED), the latter shall prevail.