The Sovereign Defence Industrial Space Activation Program is an incentive offered through the Employment Development Community Improvement Plan (CIP).
The Sovereign Defence Industrial Space Activation Program will support the establishment of sovereign defence end users within eligible industrial buildings. The program supports the activation, expansion, and retrofit of vacant or underutilized industrial space for sovereign defence end users and related industrial activity. Funding is provided through a competitive application process and is awarded as a forgivable loan to help offset eligible project development and redevelopment costs.
Applicants are encouraged to contact Invest Barrie early in the process for guidance, eligibility confirmation, and assistance completing their submission.
How the Forgivable Loan Works
The intent of the forgivable loan is to simplify the incentive process by providing one single application in place of tying incentives to specific fees and charges. The City recognizes that each project will have different investment requirements, based on numerous factors such as size, scale, location and project details. For this reason, the program offers a competitive forgivable loan rather than a fixed incentive amount. Applicants must justify the amount requested and demonstrate that it is proportionate to anticipated investment and employment outcomes. City staff will use that to determine if it is reasonably tied to the expected investment and jobs that will be created.
The maximum forgivable loan available under the program is $5 million per project, subject to available program funding and Council-approved budgets.
The forgivable loan can be used towards any eligible project development costs, but cannot exceed total costs of development or redevelopment, or be used towards operational costs.
If awarded a forgivable loan, an agreement between the City and the owner (registered or assessed owners of lands/buildings) and/or end user, will be required.
Eligibility Requirements and Details
Please review the Employment Development CIP for full eligibility details before completing an application. Section 3.3.8 outlines the requirements for the Sovereign Defence Industrial Space Activation Program. Key criteria are summarized below:
- Projects must be located within the City of Barrie municipal boundary as it existed on the date of passing By-Law Number 2026-018 to be eligible for financial incentives.
- Project sites shall not be located on lands subject to flooding hazards, erosion hazards, including wetlands.
- Projects must involve an existing industrial building containing vacant or underutilized industrial space within designated employment lands. This includes any expansions of an existing industrial building.
- The proposed end user must be confirmed by proof of future tenancy, or other legal documentation to the satisfaction of the City solicitor or designate and business activities must meet the definition of sovereign defence, as defined in the Zoning By-law.
- This could include the requirement to demonstrate operations within the industrial defence sector.
- Industrial tenants are required to have a minimum lease term of 5 years.
- Priority will be given to projects anticipating significant investment values or significant employment impact.
- Any projects under this incentive are not eligible for any other CIP programs with the exception of the Tax Increment Equivalent Grant (TIEG).
- Priority will be given to projects receiving funding through Invest Ontario, or other provincial or federal funding agencies.
Eligible project costs shall be consistent with overall project development or redevelopment costs and subject to verification by the City.
In addition, the following general eligibility requirements apply, as outlined in section 3.3.1 of the Employment Development CIP:
Evaluation and Payment Milestones
Funding requests will be evaluated based on:
- Eligible project costs
- Private capital investment
- Job creation and retention
- Activation of vacant or underutilized industrial space
- Strategic value to Barrie's sovereign defence ecosystem
- Broader municipal and regional economic benefits
The program scorecard informs funding decisions; however, funding awards are not determined by score alone, and may be adjusted based on available funding, project readiness, risk and agreement conditions. Learn more about the evaluation and funding decision process.
Funding will be released on a milestone basis following execution of a funding agreement. Payment milestones and associated conditions will be established in the agreement and tailored to the specific project.
How to Apply
Applications are accepted on a first-come, first-served basis. Applicants must:
- Complete the online application form
- Complete the owner’s authorization form (if applicable)
- Submit all required supporting documentation; please review the application package requirements for details
- Agree to enter into a legal agreement with the City of Barrie (if you are approved for the CIP program)
Applications will undergo eligibility screening, detailed evaluation and scoring before funding recommendations are considered.
Funding Agreement
Funding approvals are subject to execution of a funding agreement with the City. The agreement will establish:
- Approved funding amount
- Eligible project costs
- Payment milestones
- Performance requirements
- Monitoring and reporting obligations
- Repayment or default provisions
- Any applicable security requirements
The City may require the agreement to be registered on title to the subject property where appropriate.
For questions about the program, contact Invest Barrie at invest@barrie.ca.