Regional Defence Investment Initiative (RDII)
Eligibility & Details
What this program funds and who can apply
Program Description
Federal funding delivered through all Regional Development Agencies to help businesses integrate into national and international defence supply chains, develop dual-use technologies, and capitalize on the $357.7M defence procurement modernization commitment. For businesses, interest-free repayable contributions; for not-for-profits, non-repayable grants.
Eligibility Requirements
- Must be an SME, Indigenous recipient, or organization located in Canada (all regions eligible)
- Must be active in or intending to join the defence supply chain
- Project must relate to integrating into national/international defence supply chains or developing dual-use technologies
- For-profit businesses receive interest-free repayable contributions; not-for-profits receive non-repayable grants
- Must operate in manufacturing, technology, engineering, or aerospace sectors
Quick Assessment
Funding Details
- Amount
- $125,000 - $10,000,000
- Type
- Forgivable Loan
- Level
- Federal
- Co-Funding
- Up to 75% of eligible costs
- Deadline
- Annual EOI windows — next intake expected 2027
Program Scorecard
Competition, effort, and approval at a glance
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe most important factor in a successful RDII application is demonstrating a credible, specific linkage to Canadian Armed Forces needs, NATO requirements, or an allied country's defence procurement pipeline. 'Dual-use' alone is not sufficient — the military component must be primary and clearly evidenced. Contact CanNor's regional office ([email protected]) early and informally before the next EOI window opens; CanNor staff actively assist potential applicants in scoping and framing projects given the small territorial applicant pool. Indigenous organizations have a significant structural advantage (100% funding, non-repayable) — Indigenous SMEs and joint ventures should highlight their Indigenous governance status explicitly. Do not apply if your project's defence connection is incidental or future-speculative without a concrete pathway.
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Rejection Pitfalls 9
- Weak or absent military nexus — dual-use projects where commercial application is primary and military application is speculative or generic will be rejected
- Cannot demonstrate linkage to current/future CAF, NATO, or allied country specific needs
- Project costs incurred before April 1, 2025 (no retroactive eligibility)
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Success Profile
Territorial SMEs most likely to succeed: (1) Existing or aspiring defence prime/sub-contractor with documented relationship with DND, CAF, or NATO member procurement office. (2) Companies with proven technology that has a clear and near-term military application (e.g., Arctic surveillance sensors, cold-weather UAVs, satellite communications, search and rescue equipment, remote monitoring). (3) Indigenous businesses or joint ventures — 100% non-repayable funding rate is a major structural advantage. (4) Companies that can demonstrate specific supply chain gap they fill (not just general capability). (5) Established businesses (not pre-revenue startups) with financial capacity to absorb the 25% match and manage repayment for commercial projects. Organizations like the Council of Yukon First Nations (liaison/coordination) represent the NPO success profile.
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Evaluation Criteria
Projects assessed on: alignment with Canadian Armed Forces needs, NATO requirements, or Buy Canada Policy; managerial and technical capacity to deliver by March 31, 2028; SME integration into or advancement within defence supply chains; relevance to defence priority technologies (AI, cybersecurity, quantum, aerospace, naval, autonomous systems); productivity and competitiveness improvements; Indigenous economic inclusion; regional economic impact; financial capacity and repayment ability; IP strategy; risk mitigation strategies; project readiness and timeline feasibility.
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Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 10
Eligible Expenses 11
- Labour costs: wages and benefits that are incremental and directly related to the project
- Capital costs: purchase of equipment, machinery, and associated installation costs
- Expansion and modernization of facilities
- Digitization, automation, and technology integration investments
- Acquisition of certifications required to integrate into defence supply chains
- Market diagnostics, development, and expansion including commercialization strategies
- Adaptation, adoption, development, or improvement of dual-use technologies
- Professional and technical consulting services
- Research and development at Technology Readiness Levels 7-9
- Testing and specialized services
- Costs retroactive up to 12 months before application (not before April 1, 2025)
Ineligible Expenses 9
- Regular maintenance and ongoing operational costs
- Regularly scheduled capital expenditures and asset replacement
- Costs for which the applicant entered a legal commitment before April 1, 2025
- Labour costs not incremental and not directly related to the project
- Debt refinancing or amortization
- Land acquisition and goodwill
- Entertainment and lobbying activities
- Basic research (TRL 1-6)
- General administrative overhead not directly project-related
Intake Periods
Annual EOI intake windows tied to fiscal year cycles. The 2026-27 intake window closed November 17, 2025. Next intake expected mid-2026 for 2027-28 fiscal year. Program delivery period: April 1, 2025 to March 31, 2028. Contact CanNor at [email protected] early to get on record for next cycle — CanNor staff actively assist prospective applicants.
Deadline Notes
IMPORTANT: CanNor does NOT use continuous rolling intake. The program follows annual Expression of Interest (EOI) windows tied to fiscal year cycles. The 2026-2027 intake window closed November 17, 2025. The existing database value of 'Continuous intake — 3-year delivery period starting 2025-2026' is misleading. Businesses should contact CanNor now to get on record for the next cycle. Program delivery period ends March 31, 2028.
Open Application Portal →Ineligible Organizations
- Federal, provincial, or territorial government departments and Crown corporations
- Businesses not operating in Yukon, Northwest Territories, or Nunavut (for CanNor delivery; other RDAs cover rest of Canada)
- Unincorporated businesses or sole proprietorships
- Organizations without demonstrated defence supply chain nexus or dual-use capability
- Foreign-owned entities without Canadian incorporation and territorial presence
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Medium RiskModerate for businesses (repayable contribution). Full repayment over 5 years at 0% interest is required regardless of project commercial success. If project is not completed or milestones not met, immediate repayment may be demanded. Misrepresentation triggers full recovery. Indigenous organizations receiving 100% non-repayable funding have lower clawback risk but must still meet reporting requirements. All recipients: costs found ineligible upon audit must be returned.
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How RDII Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Regional Defence Investment Initiativ... | $125,000 - $10,000,000 | Hard | Reimbursement | Annual EOI windows —... |
| NRC IRAP Clean Technology Program | $100,000–$500,000 | Hard | Mixed (Advance + Reimb.) | Ongoing |
| CanNor IDEANorth (Inclusive Diversifi... | $50,000 to $6,000,000 | Moderate | Reimbursement | Ongoing |
| 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.) | Annual intake window.... |
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