Updated November 2026 · Verified against Federal Economic Development Agency for Southern Ontario (FedDev Ontario) guidelines
✨ New Program Reimbursement
Loan Federal Active

FedDev Ontario Regional Artificial Intelligence Initiative (RAII) for Southern Ontario Businesses

Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
Loan Range
$125K to $5M, repayable
January 19, 2027 at 4:59 p.m. EST (apply by November 24, 2026 if the project ...
Visit Official Program →
Difficulty
Hard
Payment
Reimbursement
Trend
New Program
First-Timers
—
Financing share
50%
FedDev Ontario Regional Artificial Intelligence Initiative (RAII) for Southern Ontario Businesses provides $125K to $5M, repayable. FedDev Ontario's delivery of the federal Regional Artificial Intelligence Initiative lends southern Ontario businesses $125,000 to $5 million per project, fully repayable and interest-free, for up to 50% of costs, through an AI Adoption stream and an AI Commercialization and Scale-Up stream. The program covers up to 50% of eligible costs. The deadline is January 19, 2027 at 4:59 p.m. EST (apply by November 24, 2026 if the project and costs start before March 31, 2027).
Eligibility check

Do you qualify for this loan?

Get your instant eligibility verdict plus a head start on the application. Free, no account needed.

We use this program’s real eligibility rules. 4 short questions follow.

Eligibility & Details

What this program funds and who can apply

Free

Program Description

FedDev Ontario's delivery of the federal Regional Artificial Intelligence Initiative lends southern Ontario businesses $125,000 to $5 million per project, fully repayable and interest-free, for up to 50% of costs, through an AI Adoption stream and an AI Commercialization and Scale-Up stream. Applicants must be incorporated for-profit businesses, or First Nations, Metis or Inuit businesses, located and operating in southern Ontario: adoption needs three years of operations and 5 to 499 FTEs, commercialization one year, at least one FTE in southern Ontario, and a solution at TRL 6 or higher. Applications are open until January 19, 2027; apply by November 24, 2026 if the project and costs start before March 31, 2027. Not-for-profits and municipalities apply through a separate non-repayable organizations stream.

Eligibility Requirements

  • Operate as a for-profit business located and operating in southern Ontario at the time of application, or be a First Nations, Metis or Inuit business
  • Be incorporated and registered to do business in Canada or Ontario
  • Own or demonstrate you will own project IP, hold or secure rights to any IP the project needs, and not infringe IP rights
  • Demonstrate a commitment to the responsible development and use of AI, including cybersecurity, human oversight and accountability
  • AI Adoption stream: at least 3 years of operations shown in financial statements, and at least 5 and fewer than 500 FTE employees
  • AI Commercialization and Scale-Up stream: at least 1 year of operations, at least 1 FTE in southern Ontario and fewer than 500 FTEs overall, and an AI solution at TRL 6 or higher
  • Commercialization applicants must also submit proof of previous support from a business accelerator, incubator, other government organization, or angel or venture capital investor
  • Adoption projects must go beyond buying commonly available AI tools
  • Only one application to FedDev Ontario may be under assessment at a time
Provinces
Industries
Business Stage
Startup Growth Expansion Established

Quick Assessment

Difficulty
Hard
Competition
High
First-Timer
Not rated

Funding Details

Amount
$125K to $5M, repayableBetween $125,000 and $5 million per project in both streams. Funding is fully repayable and interest-free, with repayment normally starting one year after the project is completed. FedDev Ontario covers at most 50% of project costs and the applicant at least 50%; forecast revenue and in-kind contributions do not count as matching funds.
Type
Loan
Level
Federal
Financing share
Up to 50% of eligible costs
Deadline
January 19, 2027 at 4:59 p.m. EST (apply by November 24, 2026 if the project and costs start before March 31, 2027)

Program Scorecard

Competition, effort, and approval at a glance

Competition
High
Deadline
Jan 19, 2027
Approval
Varies
Accessibility
2/5

Difficult — significant preparation needed

Competition
4/5

High competition — many applicants

Difficulty
4/5

Complex — detailed documentation needed

Processing Time
Budget Trend
Premium See processing time and budget trend for this program — and exactly what it takes to win it.

How to qualify

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

Premium
Insider Tip

Watch the November 24, 2026 date: if you want the project and costs to start before March 31, 2027, that is your real deadline, and FedDev asks you to flag costs already incurred or expected by then.

Premium See what trips up most applicants for this program — and how to avoid it.

Rejection Pitfalls 8

  • Business is not located and operating in southern Ontario, or not incorporated
+7 more pitfalls
Premium See the most common reasons applications get rejected — before you submit yours.

Success Profile

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

Evaluation Criteria

Premium See exactly what lenders look for — so you know where to focus.
Premium All 8 pitfalls, the checklist and the reviewer notes are in the Playbook below. See what it includes ↓
What's in this Playbook

Everything you need to secure RAII

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

Premium covers every program, plus the workspace that walks you through each application.

Application Playbook

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

Premium 5 steps 9 docs

Application Steps

1 Pick your stream Adoption: 3 years of operations, 5 to 499 FTEs. Commercialization and Scale-Up: 1 year, at least 1 FTE in southern Ontario, TRL 6 or higher, and proof of past ecosystem support.

Required Documents 9

✓ Application for Funding (For-Profit Applicants), a fillable PDF completed in Adobe Acrobat Reader on a computer
✓ RAII Supplemental Form, attached even if every answer is no

Eligible Expenses 8

Ineligible Expenses 7

Deadline Notes

Ineligible Organizations

Premium The full guide for this program also covers:
  • 4 more application steps
  • 7 more required documents
  • 8 eligible expenses
  • 7 ineligible expenses
  • Deadline notes
  • Ineligible organizations

Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

Premium

Stacking partner data not yet available.

Combined Funding Potential See your total funding potential

Clawback Risk

Not-applicable Risk

Premium See which programs combine with this one — and how much more you could get.

How RAII Compares

Side-by-side with similar programs

Free
Program Amount Difficulty Payment Deadline
FedDev Ontario Regional Artificial In... Between $125,000 and $5 million... Hard Reimbursement January 19, 2027 at 4:59...
Strategic Response Fund (formerly Str... Minimum $10 million contribution Hard Mixed (Advance + Reimb.) Ongoing — continuous...
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Between intakes — the...
Innovative Solutions Canada up to $150,000 Hard Milestone-Based Challenge-specific — new...
Ocean Supercluster Up to $5 million Hard Reimbursement Continuous intake (Core...

Related Programs

Other programs you might be eligible for

Free

Frequently Asked Questions

Quick answers to the questions founders most often ask about RAII

Free
Is FedDev Ontario RAII funding a grant?
Not for businesses. It is fully repayable and interest-free, with repayment normally starting one year after the project ends. Not-for-profits apply through a separate non-repayable stream.
How much can a business get?
$125,000 to $5 million per project, covering at most 50% of costs. The business funds at least the other 50%.
Who can apply?
Incorporated for-profit businesses located and operating in southern Ontario, or First Nations, Metis or Inuit businesses. Adoption projects need 3 years of operations and 5 to 499 FTEs; commercialization projects need 1 year and at least 1 FTE in southern Ontario.
What is the deadline?
January 19, 2027 at 4:59 p.m. EST. Apply by November 24, 2026 if your project and eligible costs start before March 31, 2027.
Can I use a commonly available AI tool?
Buying commonly available AI tools alone does not qualify. Adoption projects must purchase and install AI or AI-driven solutions beyond those tools.
Does it cover all of Ontario?
No. FedDev Ontario serves southern Ontario only; Northern Ontario businesses apply to FedNor's RAII.

Browse More Funding