Community Adjustment Fund

Overview

• What is the Community Adjustment Fund?
• What is the status of the Community Adjustment Fund?
• What kinds of projects are eligible for funding?
• Who was eligible to apply for project funding?
• How are projects be assessed?
• What costs are eligible?
• What CAF projects are receiving funding?
• Who can I contact for more information?
• Frequently Asked Questions

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What is the Community Adjustment Fund?

The Community Adjustment Fund (CAF) is providing $1 billion over two years to address the short-term economic needs of Canadian communities impacted by the global recession. This national economic stimulus initiative supports 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 help 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) is delivering 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.

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What is the status of the Community Adjustment Fund?

The deadline for submitting an application to Western Economic Diversification Canada for program funding has passed. A total of 1,092 CAF submissions were received from across the West requesting in excess of $2 billion in funding from the federal government.  In addition, in northern British Columbia, WD entered into an agreement with the Northern Development Initiative Trust for the delivery of CAF in their service area.  Over and above the western total WD forwarded an additional 477 CAF applications, requesting $685 million in program funding, to NDIT for evaluation and decision.  

As of February 18, 2010, WD has approved 241 projects that will provide more than $276 million in CAF funding across the four western provinces. 

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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 is being 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.

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Who was eligible to apply for project funding?

Entities eligible to apply for funding under CAF included:

• 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.

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How are projects being assessed?

Priority is being 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 are being assessed against the priority criteria listed above.

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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.

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

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What projects are receiving CAF funding?

For information regarding funded projects in each of the western provinces, please click on the links that follow:

Alberta | British Columbia | Manitoba | Saskatchewan 

Job Opportunities Program - British Columbia

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Who can I contact for more information?

For additional information view the program fact sheet, or read our Frequently Asked Questions. If you have further questions about the program, you may contact us directly at any of our offices, by email, telephone, fax, or mail.

For more information on the Job Opportunities Program (JOP) for projects in British Columbia, please visit: Job Opportunities Program. 

To review other Western Economic Diversification Canada funding programs available to assist community economic development, please visit: WD Programs.