ACOA launches $1M+ repayable AI funding for Atlantic Canadian SMEs

What was announced

The Atlantic Canada Opportunities Agency (ACOA) has opened a call for proposals under the federal Regional Artificial Intelligence Initiative. The program funds high-impact AI projects from small and medium-sized businesses across the Atlantic provinces, with a minimum funding request of $1 million. The agency has not published a maximum funding amount; it says funding levels will vary based on project scope, applicant circumstances, available funding and program requirements.

Two funding streams

Applicants can pursue one of two streams. Stream 1 supports AI adoption—integrating AI technology to improve productivity, competitiveness, growth and resilience. Stream 2 funds commercialization and scale-up of Canadian-developed AI, including validation, deployment and scaling. Under the commercialization stream, AI start-ups may be eligible if their technology is generally at technology readiness level 6 or higher.

• AI must be central to the project's outcomes and deliver measurable business results
• Robotics, automation, data analytics and rule-based systems alone do not count as AI, though they can be part of a larger AI project
• The project must show potential for sustainable business growth and economic returns, since funding is repayable

Who can apply

Eligible applicants are Atlantic Canadian small and medium-sized businesses that meet existing requirements of ACOA's Regional Economic Growth through Innovation (REGI) program. The call is open to both new and existing ACOA clients. Indigenous-led businesses are eligible and may qualify for enhanced levels of support. Not-for-profit organizations are not eligible under this call.

Application timeline and next steps

Expressions of interest close on November 20, 2026 at 11:59 p.m. ADT. Applicants must submit their expression of interest using a template provided by ACOA through its online submission form, along with any supporting documents. Selected applicants will then be invited to submit a full funding application through MyACOA. Repayment terms will be discussed during the application and due diligence process.

• The expression of interest stage is competitive and ranked; only top projects advance to the full application
• Approval timelines have not been announced

What this means for your business

For Atlantic Canadian businesses looking to invest in AI, this program offers significant capital with a minimum threshold of $1 million. Since funding is repayable rather than a grant, lenders will scrutinize the business case and expected returns. Applicants should prepare to demonstrate how AI will generate measurable outcomes and support long-term growth. Businesses in eligible sectors—including AI, technology, manufacturing, agriculture, food and beverage, and fisheries—should review ACOA's full program guidelines and contact ACOA directly if they have questions about eligibility under the REGI framework.