Regional Defence Investment Initiative

FedNor (Canada's Regional Development Agencies) · The Regional Defence Investment Initiative supports small and medium-sized enterprises and not-for-profit organizations in Northern Ontario to integrate into C…

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Overview

The Regional Defence Investment Initiative supports small and medium-sized enterprises and not-for-profit organizations in Northern Ontario to integrate into Canada's defence supply chains and enhance industrial and innovation capacity. The program funds activities including business scale-up and productivity improvements, regional innovation ecosystems, and strategic defence-related regional assets, with funding available for eligible costs incurred between April 1, 2025 and March 31, 2028.

Eligibility

Incorporated businesses including Indigenous businesses positioned in or entering defence supply chainsNot-for-profit organizations, industry associations, and Indigenous-led organizationsProjects must be military-first and meet specific military needs aligned with NATO spending targetsActivities must strengthen defence industrial base, integrate SMEs into defence supply chains, or enhance innovation capacity for defence purposes

Eligible projects

Business scale-up and productivity improvements including production capacity, innovation, market exploration, and defence certification to integrate into supply chainsRegional innovation ecosystem support including technical and business services to SMEs, supply chain development, and collaborative industrial researchDefence-related strategic regional asset enhancement including public/private infrastructure and secure access to defence-critical minerals or metalsDigitization, automation, and technology integration investmentsCommercialization strategies and market development activitiesResearch and development at Technology Readiness Levels 7-9Equipment acquisition and facility expansion or modernization for defence purposes

Financing terms

Repayable contributions up to 75% of eligible costs for businessesNon-repayable contributions up to 90% of eligible costs for not-for-profit organizations managing Regional Innovation Ecosystem projectsUp to 100% of eligible costs for eligible Indigenous recipients as repayable or non-repayable contributionsEligible costs may be retroactive up to 12 months prior to application receipt but no earlier than April 1, 2025

How to apply

1Check eligibilityConfirm you meet every criterion listed above before you start.

2Prepare the project packageProject description, budget with quotes, team, and recent financial statements.

3Apply on fednor.canada.caGovgrant members can draft the application with AI and export a formatted PDF.

4Respond to reviewer questionsMost programs come back with one round of questions within a few weeks of submission.

Additional information

Projects must be completed by March 31, 2028Assessment criteria include project readiness, SME integration support, alignment with Canadian military needs (AI, cybersecurity, quantum, space, aerospace, shipbuilding, etc.), productivity improvements, and regional impact in Northern OntarioApplication is two-phase process submitted through FedNor self-service portalDelivered by Canada's Regional Development Agencies in support of the Defence Industrial Strategy

At a glanceMaximumVariesProviderFedNor (Canada's Regional Development Agencies)DeadlineMar 31, 2028StatusOpenRegionOntarioOfficial sourcefednor.canada.ca ↗

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