Updated July 2026 · Verified against Regional Development Agencies (FedDev Ontario, PacifiCan, CED-Q, ACOA, PrairiesCan, FedNor, CanNor) guidelines
✨ New Program Reimbursement Est. 2025
Forgivable Loan Federal Active

Regional Defence Investment Initiative (RDII) — Multi-Region

Regional Development Agencies (FedDev Ontario, PacifiCan, CED-Q, ACOA, PrairiesCan, FedNor, CanNor)
Loan Range
Up to 75% of eligible costs for SMEs (repayable); up to 90% for…
March 31, 2028 (program end for eligible activities). Southern Ontario (FedDe...
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Difficulty
Hard
Payment
Reimbursement
Trend
New Program
First-Timers
—
Financing share
75%
Regional Defence Investment Initiative (RDII) — Multi-Region provides Up to 75% of eligible costs for SMEs (repayable); up to 90% for non-profits (non-repayable). A $357.7M national program delivered through Canada's seven regional development agencies to advance SME entry into the defence and dual-use supply chain through technology adoption, facility modernization, supply chain certification, and market development. The program covers up to 75% of eligible costs. Applications are accepted March 31, 2028 (program end for eligible activities). Southern Ontario (FedDev Ontario) intake currently paused. Most other regions (Quebec, Atlantic, Prairies, FedNor, PacifiCan BC, CanNor) are accepting applications. Check your regional RDA for current intake status..
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Real recipient data

Who actually receives this funding

27 businesses received this funding in 2025 — 80 awards since 2025. Typical award: $1M. Half of all awards fall between $464.4K and $4.3M. 69% of recipients are for-profit businesses. Top sectors among classified recipients: Search, detection and navigation instruments, Aerospace product manufacturing, Textile mills. Top provinces: Quebec 41% · Ontario 19% · Nova Scotia 14%. Covers: Regional Defence Investment Initiative contributions from CED-Quebec, ACOA, FedDev Ontario, FedNor and CanNor (PacifiCan and PrairiesCan have published none); a new 2025 program. Source: Government of Canada proactive disclosure data · Contains information licensed under the Open Government Licence – Canada · Data through Q4 2026.

The typical Regional Defence Investment Initiative award is $1M — the median of 80 awards since 2025. In 2025, 27 businesses were funded; 69% were for-profit companies.

27funded in 2025
$1Mtypical award
80awards since 2025
69%for-profit

Award size distribution. Half of awards fall between $464.4K and $4.3M, with a typical award of $1M.

Award sizes middle 50% of awards
$1M typical $4.3M
Top sectors Search, detection and navigation instrumentsAerospace product manufacturingTextile mills(of classified recipients)
Top provinces QC 41%ON 19%NS 14%

Named recipients

Recent recipients include 10849553 Canada Association - Cybereco (Montréal, QC, 2026), CE3 Electronics Inc. (Dieppe, NB, 2026) and Nüvü caméras inc. (Montréal, QC, 2026).

  1. 202610849553 Canada Association - CyberecoMontréal, QC
  2. 2026CE3 Electronics Inc.Dieppe, NB
  3. 2026Nüvü caméras inc.Montréal, QC
  4. 2026AKA Energy SystemsMontague, PE
  5. 2026OSM Atlantique inc.Les Îles-de-la-Madeleine, QC
  6. 2026Montréal InternationalMontréal, QC
  7. 2026Advanced Microtesting inc.Gatineau, QC
  8. 2026Metaltech Panel Division Ltd.Dieppe, NB
  9. 2026APEX Industries Inc.Moncton, NB
  10. 2026M1 Composites Technology Inc.Laval, QC
Show 28 more recipients
  1. 2026Kognitiv Spark Inc.Fredericton, NB
  2. 2026SysNergie Inc.Magog, QC
  3. 2026Anyon Systems inc.Dorval, QC
  4. 2026Virtual MarineParadise, NL
  5. 2026Bluedrop Training & Simulation Inc.Halifax, NS
  6. 2026West Kitikmeot Resources Corp.Calgary, AB
  7. 2026PAL Aerospace Ltd.St. John's, NL
  8. 2026Business Centre Nipissing Parry Sound Inc.North Bay, ON · Management consulting
  9. 2026Coastline Cordage Group Ltd.Bedford, NS
  10. 2026MDS Coating Technologies CorporationSlemon Park, PE
  11. 2026Global Spatial Technology Solutions Inc.Dartmouth, NS
  12. 2026Mil-Aero Electronics Atlantic Inc.Dartmouth, NS
  13. 2026Solace Power Inc.Mount Pearl, NL
  14. 2026Rutter Inc.St. John's, NL
  15. 2026STELIA Aerospace North America Inc./STELIA Aéronautique Amérique du Nord Inc.Lunenburg, NS
  16. 2026Quantum Valley Ideas LabWaterloo, ON · Administrative management consulting
  17. 2026D-Ta Systems Inc.Ottawa, ON · Search, detection and navigation instruments
  18. 2025Service Mold + Aerospace Inc.Windsor, ON · Iron and steel pipe and tube
  19. 2025ITTCLondon, ON · Technical and trade schools
  20. 2025Mathers Logistics Ltd.Dartmouth, NS
  21. 2025L & M Highland Outfitters LimitedDartmouth, NS
  22. 2025Sensor Technology Ltd.Dartmouth, NS
  23. 2025Creative Destruction LabToronto, ON · Other management consulting
  24. 2025University of New Brunswick - Office of Research ServicesFredericton, NB
  25. 2025Countermeasures Security Solutions Inc.Thunder Bay, ON · Textile mills
  26. 2025Ontario Tech UniversityOshawa, ON · Universities
  27. 2025Nihtat Gwich’in CouncilInuvik, NT
  28. 2025Arrowhead Arctic Center IncWhitehorse, YT
See how much each recipient received, and how each award compares to the typical one. Included in Premium ↓

Source: Government of Canada proactive disclosure

What it actually funds

This program most often pays for equipment

41% of 41 awards to businesses since April 2023 went to buying equipment or machinery, and 22% to building or expanding a facility.

Where the money went share of 41 awards

  • Buying equipment or machinery41% 17

    Projects of this kind typically received $1.3M since April 2023.

  • Building or expanding a facility22% 9
  • Marketing and sales15% 6
  • Developing a new physical product12% 5

    Real projects funded, in the government’s own words

    • Research, develop, and commercialize an innovative dual use life safety rope
    • Undertake product and business development activities to support an enhanced radar system
    • Develop a new missionized aircraft solution to offer enhanced surveillance capabilities
  • Other project types 10%adopting existing technology, hiring staff, entering new markets or exporting and more

Rare here: building software or a digital product (2%) and entering new markets or exporting (2%). Only 12% of these projects created something new; most bought or expanded something that already exists.

Real projects funded in the government’s own words

Buying equipment or machinery

  • Acquisition of equipment: The project aims to increase the productivity of a company specializing in the design and manufacturing of valves.
  • Acquisition of equipment: The project aims to increase the productivity and production capacity of a company specializing in developing energy storage solutions.

Building or expanding a facility

  • Expansion of facilities: The project aims to increase the production capacity of a company specializing in industrial machining.
  • To expand its manufacturing capabilities and position for sustained growth in the aerospace and defence sectors.

Where in a company’s journey it pays

Most staged projects here were at the grow what works stage (66%).

  1. 0%Explore an idea
  2. 12%Build something new
  3. 0%Test and prove it
  4. 2%Launch it
  5. 66%Grow what works

The other 20% were not staged projects (hiring, advice, events) or did not say.

More about these projects

New, or more of what already works?

12% created something new76% bought or expanded something that already exists

The remaining 12% were a mix of both, or the description did not say.

  • 63%Leaves a physical asset behind
  • 0%Aimed at markets outside Canada
  • 0%Claims an environmental benefit

How we know: we read the government’s published description of each award; an AI classifier sorted them, and we hand-checked a sample (92% correct). Individual awards can be misfiled, so read the shares as approximate. 5 more awards had descriptions too vague to sort and are left out. Federal disclosure lists awards above $25,000 only. Contains information licensed under the Open Government Licence – Canada.

Eligibility & Details

What this program funds and who can apply

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Program Description

A $357.7M national program delivered through Canada's seven regional development agencies to advance SME entry into the defence and dual-use supply chain through technology adoption, facility modernization, supply chain certification, and market development. Repayable for commercial applicants; non-repayable for non-profits. Note: this is the national multi-RDA umbrella entry; the CanNor-administered Northern Canada stream is listed separately — apply through only the single RDA that serves your region to avoid duplicate applications.

Eligibility Requirements

  • For-profit SME incorporated and operating in Canada, registered for at least 3 years
  • Minimum 5 full-time equivalent employees in the region
  • Active or seeking entry into the defence/dual-use supply chain
  • Project demonstrates how it contributes to Canada's defence industrial base supporting military purposes
  • Eligible activities must occur between April 1, 2025 and March 31, 2028
  • Non-profit organizations that support SMEs in the defence sector may apply for non-repayable funding
Provinces
Industries
Manufacturing Technology Aerospace Clean Technology Natural Resources
Business Stage
Growth Expansion Established

Quick Assessment

Difficulty
Hard
Competition
Moderate
First-Timer
Not rated

Funding Details

Amount
Up to 75% of eligible costs for SMEs (repayable); up to 90% for non-profits (non-repayable)
Type
Forgivable Loan
Level
Federal
Financing share
Up to 75% of eligible costs
Deadline
March 31, 2028 (program end for eligible activities). Southern Ontario (FedDev Ontario) intake currently paused. Most other regions (Quebec, Atlantic, Prairies, FedNor, PacifiCan BC, CanNor) are accepting applications. Check your regional RDA for current intake status.

Program Scorecard

Competition, effort, and approval at a glance

Competition
Moderate
Deadline
Mar 31, 2028
Approval
Moderate
Accessibility
2/5

Difficult — significant preparation needed

Competition
3/5

Moderate competition — prepare a strong application

Difficulty
4/5

Complex — detailed documentation needed

Approval Rate
Processing Time
Budget Trend
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How to qualify

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

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Insider Tip

Each RDA has its own intake window and application form — contact your regional RDA first before preparing documents.

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Rejection Pitfalls 5

  • Insufficient or vague demonstration of defence nexus — project must clearly link to DND, NATO, or allied forces needs
+4 more pitfalls
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Success Profile

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Evaluation Criteria

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Premium All 5 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 RDII

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

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Application Playbook

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

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Application Steps

1 Identify Your Regional RDA Determine which Regional Development Agency covers your location: FedNor (northern ON — open), ACOA (Atlantic — open), CED-Q (Quebec — open), PrairiesCan (MB/SK/AB — open), PacifiCan (BC — open to 2028), CanNor (territories — contact [email protected]). Note: FedDev Ontario (southern ON) intake is currently paused — check feddev-ontario.canada.ca for reopening updates.

Required Documents 7

✓ Completed regional EOI/application form
✓ Business plan or pitch deck demonstrating defence nexus

Eligible Expenses 6

Ineligible Expenses 5

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

IRAP (NRC) CanExport SMEs SR&ED Tax Credit
Combined Funding Potential See your total funding potential

Clawback Risk

Medium Risk

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How RDII Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
Regional Defence Investment Initiativ... Up to 75% of eligible costs for SMEs Hard Reimbursement March 31, 2028 (program...
NRC IRAP Clean Technology Program $100,000–$500,000 Hard Mixed (Advance + Reimb.) Ongoing
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Between intakes — the...
Strategic Response Fund (formerly Str... Minimum $10 million contribution Hard Mixed (Advance + Reimb.) Ongoing — continuous...
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 RDII

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Is this program a grant or a loan?
For commercial (for-profit) SMEs, funding is a repayable contribution — essentially a low-cost loan with negotiated repayment. For non-profit organizations, funding is non-repayable (a true grant). Plan accordingly when calculating the financial benefit.
Does my business need existing defence contracts to qualify?
No — SMEs actively seeking to enter the defence supply chain are eligible, not just existing suppliers. However, you must credibly demonstrate how your project supports DND, NATO, or allied forces needs. A letter of intent or identified procurement pathway strengthens your application significantly.
Can I apply in multiple regions?
No — applications are submitted to the RDA covering your primary business location. Each RDA delivers the program independently with separate budgets and intake windows.

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