Item - 2022.EC28.5

The Economic and Community Development Committee recommends that:

1. City Council approve the updated program design for Toronto's Business Incubation and Commercialization Grant Program, substantially in accordance with the City of Toronto Business Incubation Grant Program Guidelines in Attachment 4 to the report (March 10, 2022) from the Interim General Manager, Economic Development and Culture, with implementation commencing in the second quarter of 2022.

2. City Council authorize the General Manager, Economic Development and Culture to negotiate and execute on behalf of the City grant agreements related to the Business Incubation and Commercialization Grant Program, for a term of no more than three years, in a form acceptable to the City Solicitor.

3. City Council authorize the General Manager, Economic Development and Culture to periodically review and, when necessary, revise the Business Incubation and Commercialization Grant Program Guidelines to ensure alignment with the City of Toronto's Community Grants Policy and any other applicable City policy, as may be amended from time to time, or reflect changing industry needs and best practices.

The primary purpose of this report is to propose updates to Toronto's Business Incubation and Commercialization Grant Program for non-profit incubators and accelerators. Informed by research and consultation with partners in Toronto's innovation ecosystem, these proposed changes will ensure that grants are awarded in a transparent, open and accountable manner in accordance with the City of Toronto's Community Grants Policy (2019) and the Economic Development and Culture Divisional Strategy 2018-2022 and Equity Plan.

The recommended changes to the Business Incubation and Commercialization Grant Program are designed to increase access to funding, clarify eligibility and evaluation criteria, and offer more predictable support to recipients through a multi-year grant stream. Together, these updates should result in administrative efficiencies, improved accountability, and increased support for equity-enhancing programs and services within Toronto's business start-up and innovation eco-system.

A secondary purpose of this report is to advise on broader mechanisms of municipal government support – historic, current and for future consideration – Toronto has or could make available to accelerators, incubators and the city's wider innovation ecosystem.

The following attachments accompany this report:

Attachment 1 – overview of the history of Toronto's support for accelerators and incubators;

Attachment 2 – summary of stakeholder feedback with staff recommendations on program improvements;

Attachment 3 – stakeholder engagement report; and

Attachment 4 – the proposed Business Incubation and Commercialization Grant Program Guidelines.