Western Economic Diversification Canada Programs

WD receives an annual allocation, approved by Parliament, for grants and contributions that support a wide range of programs responding to Western Canada's economic development needs and priorities.

Funding Mechanisms

Partnership Agreements | Direct Agreements | National Agreements | Legislation

Partnership Agreements

A majority of WD's grants and contributions are delivered in partnership with other levels of government. These partnerships allow us to cost share initiatives that respond to regional needs and opportunities.

• Western Economic Partnership Agreements are multi-year funding commitments to strengthen economic activity and improve quality of life in western communities. WEPAs are cost-shared equally with each of the four western provinces, with a total of $200 million allocated to initiatives identified as federal and provincial priorities.

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Direct Agreements

WD's grants and contributions also support projects delivered directly by WD, either alone or in partnership with other organizations. Groups eligible to apply under these programs include universities and other post-secondary academic institutions, research institutes, industry associations and other not-for-profit organizations.

• Western Diversification Program invests in projects that support WD's strategic outcomes of innovation, business development and entrepreneurship and community economic development, including a number of partnership programs undertaken with other levels of government.
• Loan and Investment Program allows financial institutions to supply loan capital to clients to whom it would not otherwise make loans. Under this program, WD makes a loss support contribution which partly offsets higher risks associated with eligible loans to small businesses. Eligible clients apply directly to the financial institutions partnered with WD under this program.
• Western Canada Business Service Network is a group of several independent organizations that receive funding from WD to provide a range of services to help create and build small businesses across the West.

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National Agreements

WD delivers a number of national programs in the western provinces, including:

• Recreational Infrastructure Canada (RInC) is an infrastructure program that will provide $500 million nationally for projects to rehabilitate recreational facilities across Canada that can be completed by March 31, 2011. Western Economic Diversification Canada is delivering almost $153 million across the four western provinces.
• 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 provides 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. Western Economic Diversification Canada is delivering the fund for Western Canada, investing $306 million to help communities reduce the short-term impacts of the economic downturn.
• The Municipal Rural Infrastructure Fund will invest $278 million in the West to improve and increase the stock of core public infrastructure in areas such as water, wastewater, culture and recreation. Delivered by WD in the West, the source of funding for this program is Transport, Infrastructure and Communities.
• The Economic Development Initiative will invest $3.2 million in the West over five years to support business and economic development that encourages sustainable growth in Western Canada’s Francophone communities. 
• The Infrastructure Canada Program invested over $543 million in more than 1,600 projects that are improving the environment, supporting long-term economic growth and enhancing community infrastructure across the West.
• The Community Economic Diversification Initiative is an important component of the federal Mountain Pine Beetle Program. It is a two-year federal contribution program aimed at helping to diversify the economic foundation of forest-dependent communities and contribute to their long-term stability.

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Legislation that Governs Program Activity and Expenditures of WD Include:

Western Economic Diversification Act: Promotes the development and diversification of the economy of Western Canada and advances the interests of Western Canada in national economic policy, program and project development and implementation. The Act requires that the WD Minister undertake three mandatory duties:

• guide, promote and coordinate the policies and programs, including those related to industrial benefits, of the Government of Canada in relation to the development and diversification of the economy of Western Canada;
• lead and coordinate the efforts of the Government of Canada to establish cooperative relationships with the provinces constituting Western Canada, business, labour and other public and private organizations for the development and diversification of the economy of Western Canada; and
• compile detailed information on all programs and projects undertaken by the Minister for the purpose of measuring trends, development and progress in the development and diversification of the economy of Western Canada.

Small Business Loans Act and Canada Small Business Financing Act: Authorize the development and expansion of small business across Canada in cooperation with financial institutions. Through this legislation, loan loss guarantees are provided to the financial institutions, which grant loans to eligible businesses as provided for under the Acts. The Small Business program is administered entirely by Industry Canada.