Northern Skies,
Remember that the main purpose of the program is to remove burden (and repeat offenders) from the EI system and get people working in market sectors where there is a demand for skilled workers.
Since you are requesting "free" money, it is worth putting a lot of effort into your presentation if you want to be successful in the application.
First you, want to build up your experience - not downplay as a "low time" pilot. You have 1000 hours of related and valuable experience, which will get you by many company and/or insurance minimums. I assume you bring other skill sets to the table (even outside the aviation industry) which are well presented in a resume. You just need this one rating to open up all the doors.
Next you paint a picture of the market: spend some time here, this is where they look for information:
http://www.labourmarketinformation.ca/s ... in&lcode=e
Then, you want to show them all the jobs you can find, where the IFR is required - even better if you can print information off applicable company websites that states minimum requirements that support your application. Search HRDC (enter 2271 in the search function and "all of Canada"), newspapers, COPA, this and other websites that show job listings.
The clincher is any supporting letters or potential job offer letters you can get from industry. One is good, a couple are better. Even rejection letters on the basis of not having the desired rating are good. The company does not have to "guarantee" to hire you, nor are they obligated to hire you - their circumstances could easily change. Even if you don't personally know a company, you can still try getting a letter from a prospective employer with whom you have been in contact. Who knows, it may even turn into a real job - you may impress them with your resourcefulness, and by your success in achieving the rating.
Of course you have to show financial need, and that you have exhausted every resource available to you - including loans. You can let them know you have been rejected as you don't have an income on which to base the loan! Be sure to let them know how much you have already invested in yourself, including the costs of looking for work.
The process takes time, and varies in each instance, but you can put a "rush" on it to some degree by showing that the jobs are out there - NOW! The downside, is that there are many other factors at play - some offices approve certain ratings very easily, others do not. It depends on the province, the office, and budget for the year - how much have they already spent? If they have never heard of aviation, or all the intricacies we face in surviving in this industry, then you will really have your job cut out for you as you will have to educate them. Some offices are very familiar and regularly hand out ratings.
The best recommendation I could give you, is to set up a preliminary interview with the HRDC person with whom you will be working. Remember, this is every bit as important as a job interview - dress and conduct yourself accordingly. Introduce yourself and give a brief outline of what you would like to achieve, your difficulties in doing so, and the rosy market that faces you with your fresh rating. Build a rapport with the person from the start, and pay particular attention to what they seem to know, or not know about the industry - this will help you decide what to build up as you make your case. And remember, the person may appear dumb, but may actually have seen past the "bamboozling" by cleverer people than you, so just be sincere in stating your goals. Have an updated resume with you, and perhaps even a few job ads to start with. At the end, ask them for their help in where to go from here, and send a thank you note (email is fine).
Assuming you get past the first stage - and hopefully you will - continue to treat the relationship as you would a potential employer. Stay in regular contact with the person, and update them of your research/application progress. Be sure to send them a thank you letter if you are successful, and update them of your progress/successful completion. If you do get a job using the rating - be sure to let them know so you make it easier for other people who try for a rating. If they know that people actually do get jobs after the investment, they will be more likely to approve the next application - that is how you can pay back to others like you.
Good luck!
Snoopy