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WHAT IS
RATE DROP REBATE?

Rate Drop Rebate is a product that rewards you, Ontario’s business owners, for the steps you take to grow your operations. It also promotes employment within your community, contributing to a stronger local economy.

Does this describe you?
Run a business in the City of Hamilton, City of London or City of Ottawa

Currently hiring or have an anticipated need for an entry-level position(s)

Have a term loan, commercial mortgage, line of credit, business overdraft or business credit card at a Rate Drop Rebate partner institution

Then you could:
Save money and improve cash flow with a cash back interest rebate

Save time thanks to free recruitment services

Grow your business with qualified staff who are the right fit

Strengthen your community by providing job opportunities to people who face barriers to employment

HOW DOES IT WORK?

THINGS YOU SHOULD KNOW

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SIGN UP.

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I HAVE SOME QUESTIONS.

We might have answered them already – please take a look at our frequently asked questions.

I’D LIKE TO TALK TO SOMEONE.

Please get in touch by email or phone:
1-877-243-7409

PARTNERS

ADDITIONAL SUPPORTERS

Agilec Hamilton

Agilec Ottawa

ATN Access Inc.

Causeway Work Centre

College Boreal

Community Living Hamilton

CoMotion on King

CVE Inc.

Employment Hamilton

Fanshawe College
Community Employment
Services

Good Shepherd HOMES Program

Goodwill Ontario Great Lakes

John Howard Society

LEADS Employment Services

LiveWorkPlay

London Training Centre

Magnet

March of Dimes

Minwaashin Lodge

Neil Squire Society

NoKee Kwe

Partners in Parenting LIFE
Program

PATH Employment Services

Pathways Skill Development

Performance Plus Rehabilitative Care

Pillar Nonprofit Network

Pinecrest Queensway Employment Services

Specialisterne Canada

St. Lawrence College Employment Services

Threshold School of Building

United Way Ottawa

VERGE Capital

Wesley Urban Ministries

WIL Employment Connections

YMCA Hamilton

Youth Opportunities Unlimited

YWCA Hamilton

FAQs

It was developed by a social finance organization called Social Capital Partners (SCP). Rate Drop Rebate was modelled after a successful program SCP has been running for six years, which features a similar interest rate reduction incentive. The program has a loan portfolio of 80 businesses and has resulted in the placement of 480 new hires.
The funding for Rate Drop Rebate is being provided by the Government of Ontario.
In order to qualify, your business must:

  • Be a registered, for-profit business with a physical address that lies within the boundaries of the City of Hamilton (including Ancaster, Stoney Creek, and Binbrook), City of London (including Middlesex County), or City of Ottawa
  • Have an approved term loan or line of credit with a Rate Drop Rebate partner institution
  • Be offering a permanent paid position with a minimum of 20 working hours per week
  • Fulfill the job opening through the Rate Drop Rebate hiring channel and retain the new hire for a minimum of 6 months
Once you qualify and register online for Rate Drop Rebate, a Recruitment Liaison will contact you to learn about your business and staffing requirements. He/she will source qualified, prescreened candidates from local employment service provider partners. All of the candidates will be chosen from a pool of individuals who typically face unfair disadvantages when seeking employment. You will only be presented with candidates who are the right fit for the position and for your business.
They could fall into any of the following categories:

  • New Canadians (for example, people who are highly qualified in their home country but unable to find the same job here)
  • People with disabilities
  • Youth with limited work experience
  • Individuals with limited education and/or formal training
  • People who have been unemployed for several years (for example, parents returning to work after staying home to raise their kids)
  • Older job seekers
  • Aboriginal Canadians living off-reserve
They’re sourced from partnering employment service agencies, for example, Employment Ontario service providers such as the YMCA/YWCA, College Boreal, and PATH Employment Services.
Your Rate Drop Rebate Recruitment Liaison will work with you to understand your business and hiring needs. He/she will then screen all candidates to ensure they’re qualified to fulfill your job requirements and are the right fit for your company.
In order to qualify for the rebate, you must go through the Rate Drop Rebate hiring channel.
There is no penalty if you choose not to hire a candidate or if someone you hire does not work out. You maintain full control over all hiring decisions.
The Recruitment Liaison will be your key contact and help you resolve any issues should they arise. He/she will be working closely with you to understand what kind of employees are right for your business, which will greatly decrease the likelihood of any issues.
For every new employee you hire through Rate Drop Rebate and retain for a minimum of 6 months, you will receive a cash back rebate equivalent to:

  • A 1% reduction in the interest rate on your term loan (up to a maximum interest rate reduction of 4% on your term loan)
    OR
  • The actual interest paid over 6 months on your line of credit (up to a maximum of 24 months interest-free on your line of credit)
  • Maximum number of borrowing products eligible for rebate, per business: 1 (term loan or line of credit)
  • Maximum loan amount or line of credit balance: $200,000 (the original loan amount or line of credit balance may be higher, but the rebate will only be calculated up to this amount)
  • Maximum number of hires eligible for rebate: 4
    • 4% maximum interest rate reduction for a term loan
    • 24 months maximum interest-free for a line of credit
  • Maximum rebate per hire: $5,000

REBATE PER HIRE

REBATE FOR 4 HIRES (MAXIMUM)

TERM LOAN
$175,000 original loan amount

• Assuming 5-year term, 4.5% original interest rate, and fixed monthly payments

$4,738*

• 1% interest rate reduction

$18,519*

• 4% interest rate reduction

LINE OF CREDIT
$200,000 outstanding balance

• Assuming 4% interest rate

$4,000

• Actual interest paid over 6 months

$16,000

• Actual interest paid over 24 months

*E. & O.E.

The rebate amount will be calculated based on the full term of your loan, regardless of your remaining balance or time left.
When your employee reaches the 6-month mark, you will be asked to submit proof of employment and any relevant banking information to the Rate Drop Rebate head office. Once these documents have been received, the rebate will be calculated and delivered as a lump sum via direct deposit into your business banking account within 30 business days. You will be sent a notice of deposit once it has gone through.
Rate Drop Rebate is backed by the Government of Ontario – specifically, the Ministry of Economic Development, Employment and Infrastructure. They’re providing the money for the rebates, because it’s part of their mandate to support Ontario’s businesses and workers.
CHECK TO SEE IF YOU QUALIFY!