Updated March 2026 · Verified against National Research Council Canada (NRC IRAP) guidelines
✨ New Program ✓ First-Timer Friendly Reimbursement Est. 2026
Grant Federal Active

Defence Industry Assist (DI Assist)

National Research Council Canada (NRC IRAP)
Maximum Funding
Up to $500,000
Ongoing — rolling intake through IRAP ITA network
Visit Official Program →
Difficulty
Moderate
Payment
Reimbursement
Trend
New Program
First-Timers
Friendly ✓
Co-Funding
80%
Defence Industry Assist (DI Assist) provides Up to $500,000 typical (uses IRAP contribution framework); larger projects possible. Non-repayable contributions for Canadian SMEs developing defence and dual-use technologies that address Canadian Armed Forces capability needs. The program covers up to 80% of eligible costs. Applications are accepted on an ongoing basis. (As of March 2026, verified against National Research Council Canada (NRC IRAP) program guidelines)

Eligibility & Details

What this program funds and who can apply

Free

Program Description

Non-repayable contributions for Canadian SMEs developing defence and dual-use technologies that address Canadian Armed Forces capability needs. Delivered through the NRC IRAP network, DI Assist provides both funding and advisory services to help companies scale up, commercialize dual-use innovations, and connect to defence procurement pathways. Focus areas include cyber, space, advanced manufacturing, AI, and emerging defence technologies.

Eligibility Requirements

  • Canadian SME, incorporated, for-profit, operating in Canada
  • Up to 500 full-time equivalent employees
  • Developing innovative defence or dual-use technologies
  • Technology must address Canadian Armed Forces capability needs
Provinces
Industries
Technology Engineering Aerospace Manufacturing AI Digital +1 more
Business Stage
Startup Growth Established

Quick Assessment

Difficulty
Moderate
Competition
Moderate
Est. Hours
25h
First-Timer
Friendly

Funding Details

Amount
Up to $500,000 typical (uses IRAP contribution framework); larger projects possible
Type
Grant
Level
Federal
Co-Funding
Up to 80% of eligible costs
Deadline
Ongoing — rolling intake through IRAP ITA network

Program Scorecard

Competition, effort, and approval at a glance

Hybrid
Competition
Moderate
Effort
~25 hours
Approval
Moderate
Accessibility
--/5
Competition
--/5
Approval Rate
--%
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Consultants charge $500–$2,000 per program. This Playbook is $19.
What's in this Playbook

Everything you need to win Defence Industry Assist (DI Assist) — $19

Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.

Consultants charge $2,000–$5,000 per program. This Playbook is $19. Yours forever.

Applying for Defence Industry Assist (DI Assist)? Our Financial Projections Model ($29) covers the cost-share, matching-fund, and cash-flow math reviewers want to see. Or get all 4 templates in the Founder Pack ($59 · saves $27) →

How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

DI Assist is brand new (January 2026) with a large dedicated budget — this is the best time to apply before the pipeline fills up. The program runs through the same ITA network as regular IRAP, so step one is calling 1-877-994-4727 and getting assigned an ITA. The critical differentiator: your technology must have a credible defence or dual-use application aligned with CAF capability needs. If you already have an ITA from a previous IRAP project, contact them directly — existing IRAP clients have a faster path.

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Rejection Pitfalls 6

  • Technology lacks credible defence or dual-use application — civilian-only innovation should apply to core IRAP
  • Cannot articulate specific CAF capability need
  • Work already started before ITA approval — IRAP cannot fund retroactively
+3 more pitfalls
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Success Profile

Incorporated Canadian SME (5-200 employees) in cybersecurity, AI/ML, space technology, advanced sensors, autonomous systems, or advanced manufacturing. Technology at TRL 3-7 with demonstrable defence or dual-use application. Can articulate specific CAF capability gap their technology addresses.

Premium See what successful applicants for this program actually look like.

Evaluation Criteria

Assessment conducted by NRC IRAP Industrial Technology Advisors (ITAs) evaluating: (1) Technical aspects — innovation quality, defence/dual-use application credibility, and specific CAF capability gap addressed, (2) Business impact — growth potential and commercialization viability, (3) Management and financial capacity — team strength and ability to execute, (4) Likelihood of achieving expected results within project timeline, (5) Commercialization plan — market opportunity and path to revenue, (6) Economic benefits to Canada — job creation, export potential, industrial base strengthening.

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6 reasons applications get rejected, what winners look like, and exactly what reviewers score on
Paid grant writers quote $2,000–$5,000 per program. Start with the $19 Playbook first.

Application Playbook

Step-by-step process, required documents, and expenses

Premium 6 steps 8 docs

Application Steps

1 Contact NRC IRAP Call 1-877-994-4727 or email [email protected] to initiate contact. If you already have an ITA from a previous IRAP project, contact them directly — existing clients have a faster path. Mention DI Assist and defence/dual-use technology specifically.
2 ITA Assessment Meeting An Industrial Technology Advisor (ITA) from the network of 250+ advisors assesses your company's growth capacity, technical innovation, and defence/dual-use application credibility. This is a consultative discussion, not a formal exam.
3 Project Scoping and Proposal Work with your assigned ITA to define the project scope, milestones, budget, and timeline. Prepare a detailed technical project plan with defence/CAF capability alignment, cost breakdown by role, and commercialization strategy.
4 Internal NRC Review Your ITA submits the proposal for internal NRC IRAP review. The project is assessed on technical merit, business impact, team capability, and CAF alignment.
5 Contribution Agreement If approved, negotiate and sign a contribution agreement defining eligible costs, milestones, reporting requirements, and reimbursement terms. Project work must not begin before this agreement is signed.
6 Project Execution and Monthly Claims Execute the project per the agreement. Submit monthly reimbursement claims for eligible costs. Meet regularly with your ITA for advisory support and progress tracking.

Required Documents 8

CRA Business Number
Certificate of Incorporation (Canada)
2-3 years financial statements (or projections for early-stage)
Detailed technical project plan with milestones and deliverables
Project budget with cost breakdown by role and category
Description of defence or dual-use application with CAF capability alignment
Commercialization plan with market analysis
Key personnel CVs

Eligible Expenses 6

  • R&D salaries and wages for technical personnel directly working on the project
  • Subcontractor and consultant costs for specialized technical work (up to 50% coverage rate)
  • Materials and supplies consumed during R&D activities
  • Prototype development and testing costs
  • Technical training and skills development for project team
  • Equipment directly required for R&D activities (case-by-case)

Ineligible Expenses 6

  • Capital expenditures (buildings, land, permanent equipment purchases)
  • Routine operational costs and day-to-day business expenses
  • Marketing, sales, and general business development
  • Costs incurred before ITA approval and contribution agreement signing
  • Patent filing and IP prosecution fees
  • Administrative overhead not directly tied to the R&D project

Intake Periods

Rolling intake — no fixed deadlines. Applications accepted continuously through the IRAP ITA network. Contact 1-877-994-4727 or an existing ITA at any time. Program launched January 9, 2026 with $244.2M budget starting FY 2025-26, part of $6.6B Defence Industrial Strategy over 5 years.

Deadline Notes

Program launched January 2026 with $244.2M in new funding starting FY 2025-26, part of $6.6B over 5 years under Canada's Defence Industrial Strategy (Budget 2025). No formal intake windows — rolling basis through ITA network. Contact 1-877-994-4727 or existing ITA to initiate.

Open Application Portal →

Ineligible Organizations

  • Sole proprietorships and unincorporated businesses
  • Not-for-profit organizations and cooperatives
  • Companies with more than 500 full-time equivalent employees
  • Non-Canadian companies or companies without Canadian operations
  • Companies developing purely civilian technology with no credible defence or dual-use application
  • Academic institutions and government agencies
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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

SR&ED Tax Credit NRC IRAP (core program) Canadian Commercial Corporation (CCC) CanExport Innovation
Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk
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Stacking amounts, clawback details, government stacking limits, and tax implications
One avoided clawback typically outweighs the $19 Playbook cost by 50–100×.

How Defence Industry Assist (DI Assist) Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
Defence Industry Assist (DI Assist) Up to $500,000 Moderate Reimbursement Ongoing — rolling intake...
CanExport Innovation Up to $37,500 Moderate Reimbursement Between intakes —...
Strategic Response Fund (formerly Str... Up to $50 million Hard Mixed (Advance + Reimb.) Ongoing — continuous...
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Next deadline: May 29,...
Innovative Solutions Canada up to $150,000 Hard Milestone-Based Challenge-specific — new...

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Frequently Asked Questions

Quick answers to the questions founders most often ask about Defence Industry Assist (DI Assist)

Free
Can sole proprietors apply for DI Assist?
No. Only incorporated Canadian SMEs (for-profit, 5-500 FTEs) qualify. Sole proprietors, cooperatives, and non-incorporated entities are ineligible.
What's the typical award amount for first-time applicants?
First-time IRAP clients typically receive $75,000-$200,000. Defence projects with strong DND alignment can reach up to $500,000.
Do I need to have a CAF capability need defined before applying?
Yes. Your technology must already address a specific Canadian Armed Forces capability need. Applications without this alignment are rejected.
Is matching funding required, and how much?
Yes, 50% co-funding required. For a $100,000 grant, you must contribute $50,000 in cash or in-kind costs.
Can I stack DI Assist with SR&ED?
Yes, most common pairing. IRAP-funded salary costs are excluded from SR&ED base, but other eligible R&D expenses still generate credits.

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