CED RDII — Regional Defence Investment Initiative (Quebec)

Insider Tip

The RDII explicitly covers defence certification costs (AS9100, ITAR, CCPSA, NATO CAGE code registration) — this is one of the few federal programs where certification prep is directly eligible. If your business has existing relationships with primes like CAE, L3Harris, or Rheinmetall's Quebec operations, reference those explicitly. CED held outreach sessions in fall 2025 — contact your regional CED office for a pre-application meeting before submitting.

Success Profile

Quebec-based manufacturer or technology firm with 10–250 employees that has identified a specific defence supply chain gap (e.g., aerospace components, cybersecurity, simulation systems). Most successful applicants have at least one existing defence client or a letter of interest from a prime. Bilingual capacity (French operations) strengthens the CED relationship.

Evaluation Criteria

CED assesses: specificity of alignment with current/future Canadian Armed Forces, NATO, or allied nation defence needs; financial capacity and viability of the SME; evidence of existing defence sector relationships (contracts, LOIs, certifications, letters from prime contractors); quality of project budget and economic benefit description; jobs created, revenue impact, productivity gains. Letters of support from defence prime contractors are strongly recommended.

Application Steps

Required Documents 9

Eligible Expenses 8

• Labour costs (wages and benefits) directly related to the defence project
• Capital costs: purchase of machinery, equipment, and manufacturing infrastructure
• Consultancy fees: professional services, technical expertise, engineering
• Defence certification and qualification costs (AS9100, ITAR, CCPSA, NATO CAGE code registration)
• Pre-production activities: tooling, prototyping, testing for defence contracts
• Market exploration and expansion into defence markets (allied nations, NATO)
• Business development for defence supply chain integration
• Response to calls from prime defence contractors and Government of Canada

Ineligible Expenses 8

• Debt refinancing
• Over-market asset purchases
• Amortization on existing assets
• Goodwill
• Land purchases
• Costs incurred before April 1, 2025
• Costs incurred after March 31, 2028
• Costs deemed unreasonable or not directly related to the project

Intake Periods

Continuous intake within the program window (April 2025–March 2028). Apply well in advance of March 2028 given 4–6 month processing timeline.

Deadline Notes

Program runs April 1, 2025 to March 31, 2028. Eligible activities must be undertaken within this window. CED typically processes applications within 4–6 months. Apply well before the 2028 end date to ensure multi-year project eligibility.

Open Application Portal →

Ineligible Organizations

• Businesses operating primarily outside Quebec
• For-profit businesses without a connection to Canadian Armed Forces, NATO, or allied nation defence supply chains
• Businesses in purely civilian sectors with no defence application
• Organizations without incorporated status (SME stream requires incorporation)

Compatible Programs

Clawback Risk

Medium Risk

Moderate. For SMEs, repayment is required per schedule regardless of commercial outcomes. Clawback risk exists for misrepresented costs, ineligible activities (costs outside April 2025–March 2028 window), project abandonment, or costs not directly related to approved project scope.