Community Economic Development and Diversification Program (Canada)

Deadline: 31-Dec-2026

The Community Economic Development and Diversification Program supports projects that create long-term economic benefits for communities in British Columbia. The programme provides non-repayable contributions to eligible organisations working to strengthen local economies, attract investment, increase productivity and build resilient communities.

Funding is typically available for up to 50% of eligible project costs, with higher contributions considered in exceptional circumstances. Eligible applicants include not-for-profit organisations, Indigenous governments, Indigenous-led organisations, post-secondary institutions, and municipal or regional governments in British Columbia.

What is the Community Economic Development and Diversification Program?

The Community Economic Development and Diversification Program is a funding initiative designed to support economic growth and diversification in British Columbia.

The programme helps communities use local assets, knowledge, ambitions and opportunities to build stronger and more resilient local economies.

It supports projects that create lasting economic benefits and respond to changing economic conditions.

Main Purpose of the Programme

The main purpose of the CEDD programme is to help communities in British Columbia become more prosperous, competitive and resilient.

The programme supports projects that:

• Attract investment and talent
• Increase productivity
• Support economic growth
• Grow new and existing sectors
• Support transitioning sectors
• Increase economic participation
• Respond to changing economic circumstances
• Strengthen community economic resilience

Geographic Focus

The programme focuses on communities in British Columbia.

Projects should create economic benefits for communities, sectors, workers, businesses or organisations within the province.

Funding Type

The CEDD programme provides non-repayable contributions.

This means approved funding does not need to be repaid, provided the project meets the programme requirements and funding agreement conditions.

Funding Amount

Funding amounts vary by project.

In general, the programme may support up to 50% of eligible project costs.

In exceptional circumstances, a higher funding proportion may be considered.

Applicants are expected to secure additional funding support from other sources, such as private organisations, municipal governments, provincial governments or other public partners.

Reimbursement-Based Funding

Funding is generally provided through reimbursement.

This means recipients usually incur eligible project costs first and then receive reimbursement for approved costs.

Applicants should plan cash flow carefully and ensure they can manage project expenses before reimbursement is received.

Who is Eligible?

The programme supports projects led by eligible organisations.

Eligible applicants may include:

• Not-for-profit organisations
• Industry associations
• Economic development organisations
• Indigenous-led not-for-profit organisations
• Post-secondary institutions
• Indigenous governments in British Columbia
• Municipal governments
• Regional governments
• Organisations connected to municipal or regional governments

What Types of Projects Are Supported?

The programme supports projects that generate lasting economic benefits for communities.

Eligible projects may focus on:

• Community economic development
• Economic diversification
• Investment attraction
• Talent attraction
• Productivity improvement
• Sector development
• Workforce participation
• Local economic resilience
• Shared-use infrastructure
• Business and industry growth
• Response to economic change

Eligible Project Costs

Eligible expenses may include reasonable, incremental and essential project costs.

Supported costs may include:

• Wages and benefits
• Equipment and supplies
• Contractor services
• Expert services
• Rents and leases
• Leasehold improvements
• Information management costs
• Information technology costs
• Proprietary processes
• Transportation costs
• Capital improvements to shared-use infrastructure
• Other costs agreed to by PacifiCan

Cost Requirements

All project costs must be:

• Reasonable
• Incremental
• Essential to the project

This means costs should be directly connected to the project, necessary for implementation and additional to normal operating expenses.

Key Concepts Explained

Community Economic Development

Community economic development means local action that strengthens the economy of a community by creating jobs, improving business conditions, developing local assets and increasing opportunities for residents.

Economic Diversification

Economic diversification means reducing dependence on one sector or industry by supporting new, existing or transitioning sectors. It helps communities become more resilient to economic shocks.

Non-Repayable Contribution

A non-repayable contribution is funding that does not need to be paid back if the recipient follows the approved project terms and conditions.

Shared-Use Infrastructure

Shared-use infrastructure refers to facilities, equipment or assets that benefit multiple users, organisations, businesses or community members.

Incremental Costs

Incremental costs are additional costs that arise because of the project. They are not regular operating costs that would have happened anyway.

How the Programme Works

The programme supports eligible organisations that propose projects with clear economic benefits.

Applicants must show how their project will contribute to local or regional economic growth, diversification, productivity or resilience.

Projects are expected to include funding from other sources and must demonstrate that requested costs are necessary and eligible.

Approved recipients generally receive reimbursement after eligible expenses are incurred.

How to Apply

Applicants should prepare a strong project proposal that explains the economic need, expected benefits, eligible costs and funding sources.

Suggested Application Steps

1. Confirm that the applicant is an eligible organisation.
2. Define the community or region that will benefit from the project.
3. Identify the economic challenge or opportunity being addressed.
4. Explain how the project supports economic development or diversification.
5. Prepare a realistic budget with eligible costs.
6. Confirm which costs are reasonable, incremental and essential.
7. Identify other funding sources, such as private or public partners.
8. Show how the project will create lasting economic benefits.
9. Explain how outcomes will be measured.
10. Submit the application according to the official programme requirements.

Expected Project Benefits

Supported projects should create measurable and lasting economic benefits.

Expected benefits may include:

• Stronger local economies
• Increased business growth
• More investment attraction
• Improved productivity
• Greater workforce participation
• Support for emerging sectors
• Support for transitioning sectors
• Better use of local assets
• Stronger community resilience
• Improved shared-use infrastructure

Why It Matters

The CEDD programme helps British Columbia communities adapt to economic change and build long-term prosperity.

Many communities have unique assets, industries, skills and opportunities, but may need support to turn these strengths into sustainable economic growth.

By supporting local and regional projects, the programme helps communities attract investment, grow sectors, improve productivity and expand participation in the economy.

Tips for Strong Applications

A strong application should clearly connect the project to long-term economic benefits.

Applicants should focus on:

• Clear economic need
• Strong local or regional relevance
• Realistic project plan
• Measurable outcomes
• Strong partnerships
• Confirmed funding support from other sources
• Clear explanation of eligible costs
• Evidence that costs are reasonable and essential
• Long-term community benefit
• Strong alignment with economic diversification goals

Applicants should avoid vague claims and clearly explain how the project will create practical economic results.

Common Mistakes to Avoid

Applicants should carefully check eligibility and funding rules before submitting.

Common mistakes include:

• Applying as an ineligible organisation
• Submitting a project without clear economic benefits
• Including costs that are not essential to the project
• Treating regular operating costs as project costs
• Failing to show other funding support
• Providing an unclear or unrealistic budget
• Not explaining how outcomes will be measured
• Overlooking the reimbursement-based funding process
• Failing to connect the project to community resilience or diversification
• Submitting a proposal that does not clearly benefit British Columbia communities

FAQ

What is the Community Economic Development and Diversification Program?

The CEDD programme supports projects that create lasting economic benefits and help communities in British Columbia become more prosperous and resilient.

Who can apply?

Eligible applicants include not-for-profit organisations, industry associations, economic development organisations, Indigenous-led not-for-profit organisations, post-secondary institutions, Indigenous governments, and municipal or regional governments in British Columbia.

How much funding is available?

Funding varies by project. The programme typically supports up to 50% of eligible project costs, with higher contributions considered in exceptional circumstances.

Is the funding repayable?

No. The programme provides non-repayable contributions, subject to project approval and compliance with funding conditions.

What costs are eligible?

Eligible costs may include wages, benefits, equipment, supplies, contractor services, expert services, rents, leases, leasehold improvements, information technology, transportation and capital improvements to shared-use infrastructure.

Are projects required to have other funding sources?

Yes. Projects should have funding support from private organisations or other public organisations, including municipal and provincial governments.

How is funding paid?

Funding is generally provided through reimbursement of eligible costs after they are incurred.

Conclusion

The Community Economic Development and Diversification Program supports British Columbia communities in building stronger, more resilient and more diversified local economies. Through non-repayable contributions, the programme helps eligible organisations implement projects that attract investment, grow sectors, increase productivity and expand economic participation.

Applicants should ensure that their projects demonstrate clear economic benefits, strong local relevance, eligible costs and support from other funding partners. A successful proposal will show how local assets and opportunities can be used to create long-term prosperity for communities in British Columbia.

For more information, visit Government of Canada.