Regional Defence Investment Initiative (RDII) 2026: Who Is Still Accepting Applications

The Regional Defence Investment Initiative (RDII) is a three-year federal program, starting in 2025-26, that Canada's seven regional development agencies deliver to bring businesses, mainly small and medium-sized enterprises, into defence supply chains, including through dual-use products and services. Businesses normally receive repayable contributions of up to 75% of eligible costs. Not-for-profits that support those businesses receive non-repayable contributions of up to 90%. Indigenous recipients may be funded up to 100% where an agency states it. FedDev Ontario publishes a per-project range of $125,000 to $10 million and PacifiCan $100,000 to $10 million. The other five agencies publish no range. As of November 8, 2026, RDII is accepting applications at ACOA, CED, CanNor, FedNor and PrairiesCan. PrairiesCan takes applications up to December 31, 2027, or until its funding is used. Intake is paused at FedDev Ontario. PacifiCan's intake closed on April 15, 2026. Projects must be completed by March 31, 2028 at FedNor, PrairiesCan and PacifiCan, and by March 31, 2029 at FedDev Ontario. ACOA, CED and CanNor describe a three-year initiative from 2025-26 without stating a completion date. Every date and figure in this guide was read from the agencies' official pages on November 8, 2026, and the sources are linked at the end.

One point to settle before the detail: the agencies do not agree on the size of the national envelope. ACOA, FedDev Ontario, PrairiesCan and PacifiCan describe RDII as "a $379.2 million initiative delivered by Canada's regional development agencies". CanNor's page calls it "a $357.7 million program", FedNor's launch release of December 12, 2025 calls it a "$357.7 million national initiative", and CED's 2026-27 Departmental Plan refers to "$357.7 million in contributions over three years (2025-26 to 2027-28)". No official page we read explains the gap. This guide reports both figures with their sources and does not reconcile them.

The rest of this guide covers who qualifies, how the repayable and non-repayable terms work, how each of the seven agencies runs its intake, what assessors look for in a defence supply-chain application, and how RDII sits beside SR&ED and IRAP. If you would rather not assemble the file yourself, GrantOps builds and files it from your own records. For the agencies' other programs, start with our guide to Canada's regional development agencies.

RDII at a Glance

The terms below are the common pattern across the agencies' RDII pages. Where only some agencies state a term, the table names them. The regional table further down gives each agency's own wording.

Three timing rules apply across the initiative:

• Retroactive costs. ACOA, FedNor and PrairiesCan allow eligible costs up to 12 months before the agency receives a completed application, but not before April 1, 2025. PacifiCan's window is April 1, 2026 to March 31, 2028.
• Project completion. March 31, 2028 at FedNor, PrairiesCan and PacifiCan. FedDev Ontario's own pages give March 31, 2029. Its March 2026 briefing document lists "Program ends March 31, 2028" and notes that for FedDev Ontario the initiative "includes an additional year of program authorities beyond the currently stated end date". ACOA, CED and CanNor state no completion date.
• Stacking. ACOA, PrairiesCan and PacifiCan allow total government assistance from all levels to reach 100% of eligible costs. FedNor states 100% only for eligible Indigenous recipients.

Who Is Eligible

Every agency's RDII page describes the same core applicant: a business, mainly a small or medium-sized enterprise, that is active in or wishes to position itself within the defence industry supply chain, including through dual-use products or services. Six of the seven agencies add not-for-profit organizations that support those businesses, such as industry associations, consortia, business accelerators, incubators and research centres. ACOA, CED, CanNor, FedNor and PrairiesCan also name Indigenous recipients, Indigenous businesses or Indigenous-led organizations. ACOA names provincial and municipal governments, CED names provincial and municipal authorities, and CanNor names provincial, territorial and municipal authorities.

Two agencies narrow the list. PacifiCan's RDII is open to "Incorporated businesses", and other entities supporting defence and dual-use SMEs "may be considered for funding" only "In exceptional cases". FedDev Ontario requires businesses to be for-profit, incorporated and registered in Canada or Ontario for at least the past 3 years, located and operating in southern Ontario, and employing at least 5 full-time equivalent employees in the region. PrairiesCan requires businesses to be incorporated to conduct business in the Prairies, to have been in operation for at least 2 years, to have staffed operating facilities in the Prairie provinces, and to have confirmed funding from all other sources at the time of application.

Who should not apply. A company with no defence or dual-use military application, however innovative, does not fit. ACOA says "Applicants from any sector may be eligible provided that they demonstrate how the project benefits the Canadian Armed Forces, the NATO Alliance or NATO allies, and defence readiness or industrial capability." A company outside the agency's region should apply to its own agency. A business under 3 years old or with fewer than 5 employees cannot apply to FedDev Ontario's RDII, and a business under 2 years old cannot apply to PrairiesCan's. Early-stage research is out: FedNor funds R&D at technology readiness levels 7 through 9 and lists basic research as ineligible, and FedDev Ontario focuses R&D support on late-stage product development.

The military-first test

The agencies phrase the central test in slightly different ways, and the differences matter when you write the application.

• FedNor: "All activities supported through the RDII must be military-first and qualify under the NATO spending target." Projects "must clearly demonstrate how they meet a specific military need". Dual-use projects "must have a defined and measurable military component".
• FedDev Ontario: "All supported activities must fall under NATO's spending target, as projects under the RDII will contribute to Canada's commitment to invest 2% of GDP on defence." For dual-use technologies, "the military component must be demonstrated".
• PrairiesCan: projects must be "steered to meet military needs and align with defence priorities", and for dual-use technologies "the military component must be demonstrated (e.g., artificial intelligence, cyber security, quantum technologies)".
• ACOA: the project must benefit "the Canadian Armed Forces, the NATO Alliance or NATO allies, and defence readiness or industrial capability".
• CED: "you must demonstrate how your project meets current or future needs of the Canadian Armed Forces, NATO or an allied country."

Priority technology areas

FedDev Ontario, FedNor and PrairiesCan publish near-identical lists of defence priority areas. FedDev Ontario's priority sectors are artificial intelligence, cybersecurity or quantum technologies, space, sensors, aerospace or shipbuilding and naval industries, land and armoured vehicles, uncrewed and autonomous technologies and systems, training and simulation, munitions and personnel protection, and critical minerals and metals essential to defence. FedNor's assessment criteria name "artificial intelligence, cybersecurity, quantum technologies, space, sensors, aerospace, shipbuilding/naval, uncrewed, and autonomous technologies, training and simulation, munitions, personnel protection". PrairiesCan may give preference to activities in the areas "notably those outlined in the Defence Industrial Strategy (DIS)", and its list starts with artificial intelligence, cybersecurity, quantum technologies, space, sensors, aerospace, and uncrewed and autonomous technologies. FedNor's Defence-related Strategic Regional Assets stream also covers "secure access to supply chains involving defence-specific critical minerals or metals".

Certifications RDII can pay for

Getting certified is one of the clearest eligible costs. ACOA's FAQ lists "Costs to meet military certifications/standards (e.g., ISO, CMMC, ADSM, TAM, JCP)". FedNor lists "military certifications and/or standards (e.g., TAM, JCP, ADSM, CMMC, ISO, technical and engineering standards) to enable businesses to bid on defence projects". PrairiesCan lists "Cybersecurity Maturity Model Certification, Controlled Goods Program Certification, International Organization for Standardization, technical and engineering standards". PacifiCan lists "costs related to meeting military certifications and/or standards" and "costs related to development capacity to enable businesses to bid on defence projects". CED's priorities include projects that "meet defence certification/qualification standards". On the Industrial and Technological Benefits (ITB) Policy, ACOA's RDII page links to its own ITB page, and FedDev Ontario's Defence Services Team offers help with "understanding the Industrial and Technological Benefits (ITB) Policy and what it means to you".

How the Money Works

Repayable or non-repayable

The split follows the applicant, not the project. ACOA: "Contributions to businesses are generally repayable" and "Contributions to non-profit organizations and Indigenous entities are generally non-repayable". CED: "For SMEs, contributions are repayable" and "For non-profit organizations, contributions are generally non-repayable". CanNor: "Contributions to SMEs are normally repayable" and "Contributions to NPOs and eligible Indigenous entities are normally non-repayable". FedNor: "Repayable contributions up to a maximum of 75% may be considered for businesses" and "Non-repayable contributions up to a maximum of 90% may be considered for not-for-profit organizations to administer Regional Innovation Ecosystem projects". FedDev Ontario: businesses can request "repayable funding" and not-for-profit organizations "non-repayable funding", both from a minimum of $125,000 to $10 million. PacifiCan: "Repayable contributions for incorporated businesses". PrairiesCan puts it plainly: "PrairiesCan provides contributions under RDII, not grants."

Cost shares

• Businesses: up to 75% of eligible costs at ACOA (commercial projects), CED, FedNor, PrairiesCan and PacifiCan. PrairiesCan adds that "at least 25% of project costs should be covered by non-PrairiesCan funding". FedDev Ontario and CanNor do not publish a percentage on the pages we read.
• Not-for-profits: up to 90% at ACOA (non-commercial projects), CED, FedNor and PrairiesCan. PrairiesCan expects at least 10% from other sources.
• Indigenous recipients: up to 100% at ACOA ("Projects with Indigenous entities may be funded up to 100% of eligible costs"), FedNor ("up to 100% of eligible costs for eligible Indigenous recipients") and PrairiesCan ("may cover up to 100% of eligible project costs").
• ACOA caps every project at need: "The rate of assistance will be limited to the minimum amount required for the project." PrairiesCan "may give preference to projects that demonstrate greater leverage of funding from non-PrairiesCan sources".

Stacking with other government money

ACOA: "Total government assistance from all levels of government will not normally exceed 100% of eligible costs." PrairiesCan: "Government funding (federal, provincial, and municipal) can cover up to 100% of eligible project costs." PacifiCan: "Combined government assistance from all sources (municipal, provincial, and federal, including PacifiCan's contribution) may support up to 100%" of total eligible project costs. FedNor sets 100% as the ceiling for eligible Indigenous recipients only. CED, CanNor and FedDev Ontario do not state a stacking cap on the RDII pages we read.

Repayment terms

Only two agencies describe repayment. PrairiesCan: "repayable contribution funding is generally repaid with no interest over 5 years in monthly installments beginning 1 year after the project end date". PacifiCan: "Interest-free repayable contributions of $100,000 to $10 million per commercial project", with repayment that "normally begins one year after project completion and is made in equal monthly installments over five years", and "No collateral is required and there is no penalty for early repayment". ACOA, CED, CanNor, FedDev Ontario and FedNor do not state whether RDII contributions carry interest, so ask before you model the cash flow.

Retroactive costs

ACOA's FAQ: "Eligible costs may be considered up to 12 months prior to the date ACOA receives a completed application, but not before April 1, 2025." FedNor: "Eligible costs may be retroactive up to 12 months prior to the receipt of a funding application, but no earlier than April 1, 2025." PrairiesCan: costs "may be eligible on a retroactive basis up to a 12-month period prior to the receipt of a signed funding request, but no earlier than April 1, 2025." PacifiCan: "All project costs must be incurred and services rendered or goods received between April 1, 2026, and March 31, 2028." CED, CanNor and FedDev Ontario do not state a retroactive rule on the RDII pages we read.

Eligible costs

The agencies' cost lists overlap heavily. Drawing on ACOA's FAQ, FedNor's page, PrairiesCan's information page and PacifiCan's funding overview, eligible costs include:

• capital costs, including equipment acquisition and the expansion or modernization of facilities
• materials and labour, including salaries, wages and benefits tied to the project
• professional and technical services, including consultancy
• pre-production activities such as technological development and demonstration
• commercialization and market expansion, including, at FedDev Ontario, "participation in technology showcases"
• specialized testing, research and development, technical or innovation services
• costs to meet military certifications and standards
• costs to develop the capacity to bid on defence projects or to build regional defence infrastructure

Ineligible costs

CED lists debt refinancing, assets bought above fair market value, amortization, goodwill and land. FedNor lists regular maintenance and ongoing operating costs, regularly scheduled capital expenditures, refinancing, amortization and goodwill, acquisition of land and buildings, entertainment, lobbying, basic research, assets above fair market value, and any cost the applicant committed to before April 1, 2025. PacifiCan lists salary bonuses and dividends, entertainment, refinancing of existing debts, amortization or depreciation, lobbying, and membership fees and donations. PrairiesCan excludes anything "not reasonable, non-incremental, and/or not directly related to the project".

RDII by Region as of November 8, 2026

As of November 8, 2026, PrairiesCan's intake end of December 31, 2027 is 418 days away, the March 31, 2028 completion date is 509 days away, and FedDev Ontario's March 31, 2029 completion date is 874 days away. None of the agencies prints a clock time or time zone for an RDII date.

ACOA (Atlantic Canada)

ACOA's Regional Defence Investment Initiative in Atlantic Canada page states that "ACOA is delivering $38.2 million under this initiative in Atlantic Canada over three years, starting in 2025-26." The programs index shows RDII with the badge "Open". The page itself has a "How to apply" section but no intake dates and no closing date.

Eligible recipients are businesses, mainly SMEs, in or entering the defence supply chain including through dual-use products or services, non-profit organizations that support businesses, Indigenous-owned businesses and organizations, and provincial and municipal governments. ACOA's RDII FAQ sets the cost shares at 75% for commercial projects, 90% for non-commercial projects and 100% for projects with Indigenous entities, with total government assistance not normally above 100%. Eligible costs run from capital and labour to pre-production, commercialization, specialized testing and certification. Retroactive costs reach back 12 months but not before April 1, 2025.

ACOA's stated priorities are business-led projects that increase Canada's defence industrial capability, meeting Canadian defence needs, integrating Canadian businesses into defence supply chains, productivity and competitiveness, strong economic benefits, defence-related regional infrastructure, Indigenous economic inclusion, and alignment with the Buy Canadian Policy. ACOA does not publish a per-project minimum or maximum, and does not state whether repayable contributions carry interest. To apply, "Contact your nearest ACOA office to discuss your project and then complete and submit an application following the directions on the How to apply for financial assistance page." The ACOA Contact Network is at acn-rca@acoa-apeca.gc.ca or 1-833-514-3568. Provincial program pages for Nova Scotia and New Brunswick list what else is open in the region.

CED (Quebec)

CED's Regional defence investment initiative page carries the labels "Ongoing program" and "Accepting applications" and states that "DEC accepts funding applications under the RDII." The page calls RDII "a three-year temporary initiative" and files it under REGI, the Regional Economic Growth through Innovation program. CED's 2026-27 Departmental Plan gives the envelope: "$357.7 million in contributions over three years (2025-26 to 2027-28), including $64.9 million for CED".

Eligible applicants are SMEs active in or positioning themselves within the defence supply chain, not-for-profits that support SMEs, Indigenous recipients, and provincial and municipal authorities. Quebec has a clear preference: "In Quebec, the RDII prioritizes business growth and productivity projects". Those are SME projects that increase production and innovation capacity, improve productivity and competitiveness, explore new markets, meet defence certification or qualification standards, support start-up and growth aimed at supply-chain integration, or respond to calls for proposals from prime defence contractors and the Government of Canada. Ecosystem projects are supported only "On an exceptional and targeted basis". For SMEs, contributions are repayable and may cover up to 75% of eligible costs. For non-profit organizations, contributions are generally non-repayable and may cover up to 90%. CED does not publish a per-project range, interest terms or an Indigenous cost share for RDII. Ineligible costs are debt refinancing, assets above fair market value, amortization, goodwill and land.

CED's 2026 defence announcements include over $33 million to strengthen Quebec's defence sector on February 18, 2026, $3.6 million for the Université du Québec en Outaouais on March 24, 2026, and an investment to structure the defence industrial ecosystem on April 13, 2026. Applications go through CED's financial assistance application. See our Quebec grants page for the rest of CED's open programs.

CanNor (Yukon, Northwest Territories and Nunavut)

CanNor's Regional Defence Investment Initiative page states that "CanNor is delivering up to $40.5 million under this initiative in Nunavut, the Northwest Territories and the Yukon over three years, starting in 2025-2026", and describes RDII as "a $357.7 million program". The intake is informal: "please contact operations@cannor.gc.ca or your CanNor Regional Office to express your interest or request more information." CanNor's news release of December 5, 2025 said businesses and organizations in the three territories "can now apply".

Eligible recipients are businesses, mainly SMEs, in or entering the defence supply chain including through dual-use products or services, not-for-profit organizations that support SMEs, Indigenous recipients, and provincial, territorial and municipal authorities. CanNor's activities fall in three groups: scale-up and productivity for SMEs, regional innovation ecosystem development, and "Development of targeted defence-related strategic regional assets, including small-scale or dual-use infrastructure". The third group is the northern distinction. It includes "Preparatory work to advance small defence infrastructure projects" and "Construction of public or private infrastructure that is or could be used for defence purposes, including dual-use and multi-purpose transportation, energy and communication projects". Priority goes to projects "strengthening defence-related regional infrastructure (particularly in the North)", advancing Indigenous economic inclusion and aligning with the Buy Canadian Policy.

"Contributions to SMEs are normally repayable. Contributions to NPOs and eligible Indigenous entities are normally non-repayable." CanNor publishes no cost-share percentage, stacking cap, per-project range or deadline for RDII.

FedDev Ontario (southern Ontario)

FedDev Ontario's Regional Defence Investment Initiative in Southern Ontario page opens with a banner: "Intake for the Regional Defence Investment Initiative is currently paused". The funding hub shows "Intake paused", and FedDev Ontario's Building Southern Ontario Strong page, updated November 6, 2026, lists "Regional Defence Investment Initiative (Intake Paused)". No official page states when the pause began. The earliest page carrying the banner is dated May 13, 2026. The organizations page still shows an older sentence beneath the banner, "Apply by January 21, 2026, if your proposed project and eligible costs start before March 31, 2026", followed by a note that later-starting projects would be accepted "until funding is fully committed". The paused banner is the current status, and that older text should be treated as superseded.

The page describes RDII as "a $379.2-million initiative, delivered by Canada's regional development agencies" and adds that "FedDev Ontario is also allocating support from existing resources, bringing the total investment in defence support to nearly $200 million." FedDev Ontario does not publish its RDII share separately. Building Southern Ontario Strong reports "46 projects supported since 2025" and "$179M invested". FedDev Ontario's May 19, 2026 release on strengthening Canada's defence capabilities announced $5 million for Ontario Tech University's Automotive Centre of Excellence in Oshawa and described FedDev Ontario as "delivering RDII in southern Ontario and allocating additional resources".

When intake is open, businesses "can normally request: a minimum of $125,000 to $10 million in repayable funding" and not-for-profit organizations "a minimum of $125,000 to $10 million in non-repayable funding". Cost-share percentages and interest terms are not on the pages we read. Eligible businesses must be for-profit, incorporated for at least the past 3 years, located and operating in southern Ontario, and employing at least 5 full-time equivalent employees in the region. Eligible activities include digitization and automation, market development including technology showcases, "Preparation and acquisition of certifications", equipment acquisition and facility modernization, dual-use technology development, and late-stage R&D. Projects must be executable "in the timeframe of this initiative (April 2025 to March 2029)", and "All project activities must be completed by no later than March 31, 2029, to be eligible for reimbursement." FedDev Ontario's March 2026 briefing document explains the extra year. It lists "Program ends March 31, 2028" and notes that for FedDev Ontario the initiative "includes an additional year of program authorities beyond the currently stated end date".

Two rules are specific to FedDev Ontario. First, "Your business can only submit one application to FedDev Ontario at a time, across any of the open programs." Second, approved applicants "sign a contribution agreement within 30 calendar days of being notified". FedDev Ontario also runs a Defence Services Team at defence-defense@feddevontario.gc.ca with a concierge service that reports "483 SME supplier meetings since launch" and "169 introductions made". While RDII is paused, southern Ontario companies with AI projects can look at the FedDev Ontario RAII guide, and our Ontario grants page lists the province's other open programs.

FedNor (Northern Ontario)

FedNor's Regional Defence Investment Initiative page uses none of the words open, closed or continuous. It says "Funding is available for eligible activities undertaken between April 1, 2025, and March 31, 2028", that "All applications will be assessed as they are received", and that "Approval will also depend upon funding availability." FedNor's launch release of December 12, 2025 gave the envelope: "The RDII will be delivered in Northern Ontario by FedNor with an investment budget of $15.8 million over three years", within a "$357.7 million national initiative". The release also notes the funds are "granted under Canada's Regional Economic Growth through Innovation program". FedNor's 2026-27 Departmental Plan reports that "To date, FedNor has provided over $2.0 million in investments" under RDII, and a March 19, 2026 release of $4,574,347 for six initiatives in Nipissing-Timiskaming named RDII among the programs used.

Eligible applicants are "Incorporated businesses including Indigenous businesses (First Nation/Métis/Inuit) within, or positioning themselves in, the defence supply chains" and "Not-for-profit organizations, industry associations, and Indigenous-led organizations (First Nation/Métis/Inuit)". FedNor is the agency that writes the test most strictly: "All activities supported through the RDII must be military-first and qualify under the NATO spending target." Funding flows through three streams: Business Scale-Up and Productivity, Regional Innovation Ecosystems, and Defence-related Strategic Regional Assets.

Terms: "Repayable contributions up to a maximum of 75% may be considered for businesses." Non-repayable contributions up to 90% may be considered for not-for-profits administering Regional Innovation Ecosystem projects. Contributions "may be considered up to 100% of eligible costs for eligible Indigenous recipients." No per-project cap is stated and interest terms are not stated. Eligible activities include digitization and automation, market development and commercialization, certifications, equipment and facility modernization, dual-use adaptation, R&D at TRL 7 through 9, and preparatory work for small defence infrastructure projects. FedNor's assessment criteria include the ability to achieve the project's objectives by March 31, 2028, the degree of SME integration into the defence sector, alignment with the priority areas, intellectual property strategies for IP-intensive projects, benefits accruing to Northern Ontario, financial capacity and expected results. "The application process is two phases and submitted through the FedNor self-service portal." FedNor asks applicants to "call 1-877-333-6673 to discuss your proposal with a FedNor Officer".

PrairiesCan (Alberta, Saskatchewan and Manitoba)

PrairiesCan's Regional Defence Investment Initiative (RDII) in the Prairie provinces page is the one with a dated intake. Under the heading "Intake open for a limited time" it says: "Review eligibility criteria and apply as early as possible up to December 31, 2027, or until all funding is used. All projects must be completed by March 31, 2028." The funding hub badge reads "Currently accepting applications". PrairiesCan describes RDII as "a $379.2 million, three-year national initiative delivered by Canada's seven Regional Development Agencies" and as part of REGI. The pages we read do not state PrairiesCan's own regional envelope.

The eligibility page names businesses within or positioning themselves in the defence supply chain, not-for-profits that support businesses and "respond or could respond to a military need", and Indigenous-owned businesses and organizations. Businesses must be incorporated to conduct business in the Prairies, have been in operation for at least 2 years, have staffed operating facilities in the Prairie provinces, and "have confirmed, at the time of application submission, funding from all other sources, including government and non-government". The program information page sets the terms. Businesses normally receive repayable funding "repaid with no interest over 5 years in monthly installments beginning 1 year after the project end date", up to 75% of eligible costs. Not-for-profits normally receive non-repayable funding up to 90%. Indigenous applicants may be covered up to 100%. Government funding from all three levels can cover up to 100%. Project activities can last up to 3 years. Eligible activities are technology adoption, capacity building including certifications, productivity improvement through equipment and facilities, and technology commercialization including R&D and dual-use technologies.

PrairiesCan's May 12, 2026 backgrounder reported "$9,300,900 in repayable RDII investment for six projects in Alberta": 3-Ci Manufacturing ($300,900), Canadian UAVs ($3 million), Microlynx Systems ($2 million), MRO Electronic Supply ($1 million), Technalogix ($1 million) and VizworX ($2 million). The release added that "PrairiesCan continues to accept RDII applications from eligible businesses and organizations operating across the Prairie provinces." Applications start with an expression of interest form, supported by a help guide, an applicant guide and a supplemental form. Contact a regional office at 1-888-338-9378. Our Alberta, Saskatchewan and Manitoba pages list the province-level programs that can sit beside RDII.

PacifiCan (British Columbia)

PacifiCan's Regional Defence Investment Initiative in British Columbia page shows "Status Not currently accepting applications", and the funding hub labels it "Currently closed". Two news releases, on February 20, 2026 and March 31, 2026, said "Applications are being accepted until April 15, 2026." No page we read gives a clock time for that date, and no page announces a second intake.

The page states that "PacifiCan is delivering $67.5 million under this initiative in British Columbia over three years, starting in 2025-26. Applications will be accepted for commercial projects seeking funding between April 1, 2026, and March 31, 2028." PacifiCan ties RDII to "Canada's first Defence Industrial Strategy (DIS), which is investing an initial $6.6 billion". PacifiCan published the clearest business terms of any agency: "Interest-free repayable contributions of $100,000 to $10 million per commercial project", up to 75% of eligible costs, repayment starting one year after project completion in equal monthly installments over five years, no collateral and no penalty for early repayment, and combined government assistance of up to 100%. Eligible organizations are "Incorporated businesses", with other entities supporting defence and dual-use SMEs considered "In exceptional cases". All project costs must be incurred between April 1, 2026 and March 31, 2028.

PacifiCan's two 2026 rounds show what it funded. On February 20, 2026 it announced over $46.6 million for eight B.C. projects, including over $40.6 million for five projects at the University of British Columbia and Simon Fraser University to build test facilities and advance defence and dual-use research, and over $6 million for three organizations including the Association of British Columbia Marine Industries. On March 31, 2026 it announced over $13.8 million for five projects: the UVic Centre for Aerospace Research ($4 million), the UVic ACIS Lab ($1.4 million), Arcane Aerospace (over $3 million), Atreides (over $2.4 million) and OSI Maritime Systems (over $2.8 million). When intake reopens, the how to apply page asks for a portal application under "PacifiCan - Regional Defence Investment Initiative (DIR-Business)", an RDII Supplemental Form, a Detailed Budget Worksheet, a Technology Questionnaire for technology commercialization projects, financial statements for the past two complete years, and written confirmation of funding from all sources. Questions go to pacifican.RDII-IRID@pacifican.gc.ca. Our British Columbia grants page tracks what is open in the province in the meantime.

Preparing a Defence Supply-Chain Application

The RDII pages describe the application the agencies want to read. Six elements recur.

1. A demonstrated military need. FedNor wants projects that "clearly demonstrate how they meet a specific military need". FedDev Ontario wants projects that "indicate how they would benefit the Government of Canada or the NATO Alliance directly or indirectly". For a dual-use product, name the defence application and the evidence that it is real, not hypothetical.
2. A named customer or procurement path. ACOA asks how the project benefits "the Canadian Armed Forces, the NATO Alliance or NATO allies". CED prioritizes SMEs that "respond to calls for proposals from prime defence contractors and the Government of Canada". A letter of interest from a prime contractor, a NATO ally's procurement notice or a Canadian Armed Forces requirement turns the military case from a claim into a fact.
3. A certification plan. If you lack CMMC, Controlled Goods, ISO, TAM, JCP or ADSM status, say which you need, why, and what it costs. Those costs are eligible at ACOA, FedNor, PrairiesCan and PacifiCan.
4. Confirmed matching funding. PrairiesCan requires it "at the time of application submission". PacifiCan asks for "Written confirmation of funding from all sources". FedDev Ontario expects a signed contribution agreement within 30 calendar days of approval. Bank statements, term sheets and letters from other funders belong in the file, not in a follow-up.
5. A project that fits the window. Activities must finish by March 31, 2028 at FedNor, PrairiesCan and PacifiCan, and by March 31, 2029 at FedDev Ontario. FedNor scores "the ability to achieve the project's stated objectives by March 31, 2028". A schedule that ends in 2029 at a 2028 agency will not be funded.
6. Regional and economic benefits. FedNor assesses "Accrual of project benefits to Northern Ontario", "Financial capacity to complete the project" and "Expected results of the project". ACOA and CanNor list "generating strong economic benefits" and alignment with the Buy Canadian Policy among their priorities. FedNor also looks for "Intellectual property (IP) strategies for IP-intensive projects".

A final practical point: FedNor's page says plainly that completing an application does not assure approval, and that "Approval will also depend upon funding availability." PrairiesCan's intake runs "until all funding is used". At agencies with no stated closing date, the money, not the calendar, sets the deadline.

Stacking RDII with SR&ED and IRAP

None of the seven RDII pages names SR&ED or IRAP. What they publish is a cap on total government assistance, and the cap is generous. ACOA: "Total government assistance from all levels of government will not normally exceed 100% of eligible costs." PrairiesCan: "Government funding (federal, provincial, and municipal) can cover up to 100% of eligible project costs." PacifiCan: "Combined government assistance from all sources ... may support up to 100%" of eligible costs. FedNor allows up to 100% only for eligible Indigenous recipients. FedDev Ontario says "RDII funding is designed to work in coordination with other government supports. Applicants are encouraged to seek out and leverage other innovation or sector-specific programs where applicable." PrairiesCan tells applicants to consider how RDII funding could affect their taxes or other current or future funding agreements. CED and CanNor publish no stacking rule for RDII.

In practice the three programs fund different stages of the same company. SR&ED is a tax credit for experimental development that resolves technological uncertainty, so the engineering work that makes a dual-use product function belongs there. NRC IRAP funds R&D projects through an Industrial Technology Advisor. RDII funds what comes after: equipment, certification, late-stage development (TRL 7 through 9 at FedNor), commercialization and the capacity to bid. Keep each cost in one budget only, because government assistance received for a cost reduces what can be claimed for that same cost under SR&ED, and because the RDII cost shares are calculated on the costs you present. Where an agency publishes no cap, ask the program officer before you assume one.

The Regional Tariff Response Initiative is also delivered by the same seven agencies, and a company hit by tariffs that is pivoting toward defence markets may qualify for both. FedDev Ontario's one-application rule means a southern Ontario company must choose which to submit first.

How to Apply: Step by Step

1. Confirm your region and the current status. Find your agency in the regional table above. On November 8, 2026, ACOA, CED, CanNor, FedNor and PrairiesCan were accepting applications, FedDev Ontario was paused and PacifiCan was closed. PrairiesCan's intake runs up to December 31, 2027, or until the funding is used.
2. Test the military case before anything else. Write one paragraph that names the Canadian Armed Forces, NATO or allied need your product or service meets, and the defence priority area it falls in. If you cannot write that paragraph, RDII is not your program.
3. Talk to the agency first. ACOA asks you to contact your nearest office before applying. CanNor asks for an email to operations@cannor.gc.ca. FedNor gives 1-877-333-6673. PrairiesCan gives 1-888-338-9378. FedDev Ontario's Defence Services Team is at defence-defense@feddevontario.gc.ca. CED's page points to its contact page.
4. Build the budget around the agency's cost rules. Separate capital, labour, professional services, certification and commercialization costs. Apply the cost share for your applicant type, check the retroactive window (12 months back but not before April 1, 2025 at ACOA, FedNor and PrairiesCan), and line up written confirmation of every other funding source.
5. Prepare the agency's forms. FedNor uses a two-phase application through its self-service portal. PrairiesCan uses an expression of interest form, an applicant guide and a supplemental form. CED uses its financial assistance application. ACOA uses its application for financial assistance. PacifiCan, when open, uses its portal plus a supplemental form, a budget worksheet and a technology questionnaire.
6. Submit and plan for the completion date. Projects must finish by March 31, 2028 at FedNor, PrairiesCan and PacifiCan and by March 31, 2029 at FedDev Ontario. FedDev Ontario also expects approved applicants to sign a contribution agreement within 30 calendar days of notification. Costs you incur before a decision are at your own risk.

How GrantOps Handles an RDII Application

An RDII file has to prove four things at once: that a military need exists, that your company can meet it, that the budget is real and incremental, and that the money will be spent inside the agency's window. GrantOps connects to the engineering, finance and project tools your company already runs and builds that proof from your own records. The technical narrative comes from your repositories and tickets, the budget from your accounting system, and the headcount and operating-history evidence from your HR and incorporation documents.

GrantOps maps your project to the right agency and applicant type, applies that agency's cost share and retroactive rule, and splits the budget into the cost categories the page uses. It keeps SR&ED-eligible experimental development in the SR&ED claim and the certification, equipment and commercialization costs in the RDII budget, so each number is traceable for the program officer and for any later audit. It tracks the intake dates and completion deadlines across all seven agencies, including PrairiesCan's December 31, 2027 close, and flags when FedDev Ontario's one-application rule means sequencing RDII behind another FedDev program.

You approve every submission before it goes out. Start free, or book 30 minutes and we will map your project to the right stream.

Frequently Asked Questions

What is the Regional Defence Investment Initiative?

The Regional Defence Investment Initiative (RDII) is a three-year federal program, starting in 2025-26, delivered by Canada's seven regional development agencies. It funds businesses, mainly small and medium-sized enterprises, to enter or grow within defence supply chains, including through dual-use products and services. It also funds not-for-profits that support those businesses, Indigenous recipients and, at some agencies, provincial, territorial and municipal governments. Businesses normally receive repayable contributions of up to 75% of eligible costs. Not-for-profits receive non-repayable contributions of up to 90%. Each agency runs its own intake and publishes its own terms.

Which agencies are accepting RDII applications in November 2026?

As of November 8, 2026, five agencies are taking applications. ACOA's programs index shows RDII as Open. CED's page says Ongoing program and Accepting applications. CanNor asks businesses in the territories to email operations@cannor.gc.ca to express interest. FedNor assesses applications as they are received for activities between April 1, 2025 and March 31, 2028. PrairiesCan accepts applications up to December 31, 2027, or until all funding is used. FedDev Ontario's intake is currently paused. PacifiCan is not currently accepting applications, after an intake that closed on April 15, 2026.

Is RDII a grant or a loan?

Neither word fits exactly. RDII pays contributions toward eligible project costs. For businesses the contribution is normally repayable, so it behaves like a loan without a bank. PrairiesCan and PacifiCan state that repayment is interest-free, starts one year after the project ends and runs over five years in monthly installments. The other agencies do not state interest terms on their RDII pages. For not-for-profits the contribution is generally non-repayable, which is closer to a grant. ACOA and CanNor say contributions to Indigenous entities are generally non-repayable as well.

How much can my business get under RDII?

Only two agencies publish a per-project range. FedDev Ontario lists a minimum of $125,000 to $10 million in repayable funding for businesses and the same range in non-repayable funding for not-for-profits. PacifiCan lists $100,000 to $10 million per commercial project. ACOA, CED, CanNor, FedNor and PrairiesCan publish no minimum or maximum, only a maximum share of eligible costs: up to 75% for businesses and up to 90% for not-for-profits. ACOA adds that the rate of assistance will be limited to the minimum amount required for the project.

Why do official pages show both $379.2 million and $357.7 million for RDII?

The agencies' own pages differ. ACOA, FedDev Ontario, PrairiesCan and PacifiCan describe RDII as a $379.2 million initiative delivered by Canada's regional development agencies. CanNor's page and news release, FedNor's launch release of December 12, 2025 and CED's 2026-27 Departmental Plan describe it as a $357.7 million initiative. No official page we read explains the difference, so this guide reports both figures with their sources and does not reconcile them. The regional envelopes are what matter for an applicant, and those are stated separately by each agency.

Can RDII cover costs I have already incurred?

At some agencies, yes, within limits. ACOA, FedNor and PrairiesCan say eligible costs may be considered up to 12 months before the agency receives a completed application, but no earlier than April 1, 2025. FedNor lists costs committed before April 1, 2025 as ineligible. PacifiCan's rule is different: all project costs must be incurred and services rendered or goods received between April 1, 2026 and March 31, 2028. CED, CanNor and FedDev Ontario do not state a retroactive rule on the RDII pages we read, so ask the program officer before you count earlier spending.

Does my project have to be purely military?

No, but it needs a demonstrated military component. FedNor says all RDII activities must be military-first and qualify under the NATO spending target. FedDev Ontario says all supported activities must fall under NATO's spending target and that, for dual-use technologies, the military component must be demonstrated. PrairiesCan uses the same phrase. ACOA asks applicants to show how the project benefits the Canadian Armed Forces, the NATO Alliance or NATO allies. CED asks you to show how the project meets current or future needs of the Canadian Armed Forces, NATO or an allied country. A civilian product with a credible defence application can qualify.

Can I stack RDII with SR&ED or IRAP?

The RDII pages set total-government caps rather than naming SR&ED or IRAP. ACOA says total government assistance from all levels will not normally exceed 100% of eligible costs. PrairiesCan says government funding at the federal, provincial and municipal levels can cover up to 100%. PacifiCan says combined government assistance from all sources may support up to 100%. FedNor allows up to 100% only for eligible Indigenous recipients. FedDev Ontario says RDII is designed to work in coordination with other government supports. Keep SR&ED and IRAP costs in separate budget lines so each claim stays clean, and confirm the cap with your program officer.

Sources

All program facts above were read on November 8, 2026 from the seven regional development agencies' official pages.

• ACOA: Regional Defence Investment Initiative in Atlantic Canada (envelope, eligibility, priorities, how to apply)
• ACOA: RDII frequently asked questions (cost shares, stacking, retroactive costs, eligible costs)
• ACOA: Programs index (status badge)
• CED: Regional defence investment initiative (status, eligibility, Quebec priorities, terms)
• CED: 2026-27 Departmental Plan (national and CED envelopes)
• CED: Over $33M for Quebec's defence sector (February 18, 2026 release)
• CED: $3.6M for Université du Québec en Outaouais (March 24, 2026 release)
• CED: Structuring the defence industrial ecosystem (April 13, 2026 release)
• CanNor: Regional Defence Investment Initiative (envelope, eligibility, streams, how to apply)
• CanNor: $40.5M for Northern Canada's defence sector (December 5, 2025 launch release)
• FedDev Ontario: RDII in Southern Ontario (paused status, envelope, funding ranges)
• FedDev Ontario: RDII for businesses, who can apply (eligibility, priority sectors, NATO target, one-application rule)
• FedDev Ontario: RDII for businesses, when to apply (completion date, contribution agreement)
• FedDev Ontario: RDII for organizations, who can apply (organization eligibility, superseded dates)
• FedDev Ontario: Defence sector support (Defence Services Team, ITB Policy help)
• FedDev Ontario: Building Southern Ontario Strong (projects and dollars invested, concierge figures)
• FedDev Ontario 101, March 2026 (program end date and additional year)
• FedDev Ontario: $5M for Ontario Tech University (May 19, 2026 release)
• FedNor: Regional Defence Investment Initiative (military-first test, streams, terms, assessment, how to apply)
• FedNor: RDII launch release (December 12, 2025, $15.8 million and $357.7 million)
• FedNor: 2026-2027 Departmental Plan (investments to date)
• FedNor: $4.5M for Nipissing-Timiskaming (March 19, 2026 release)
• PrairiesCan: RDII in the Prairie provinces (intake dates, national figure)
• PrairiesCan: RDII eligibility (applicant criteria, guides and forms)
• PrairiesCan: RDII program information (terms, repayment, costs, retroactivity)
• PrairiesCan: Funding hub (status badge)
• PrairiesCan: Defence innovation and manufacturing in Alberta (May 12, 2026 release)
• PrairiesCan: Alberta RDII backgrounder (six projects, $9,300,900)
• PacifiCan: RDII in British Columbia (status, envelope, range, cost window)
• PacifiCan: RDII funding overview (repayment terms, cost share, costs)
• PacifiCan: RDII how to apply (portal and documents)
• PacifiCan: RDII contact (program email)
• PacifiCan: Funding hub (status label)
• PacifiCan: Defence innovation and capacity building in B.C. (February 20, 2026 release, April 15 intake close)
• PacifiCan: $13.8M for defence innovation in AI and aerospace (March 31, 2026 release)