RAII B.C. 2026: PacifiCan's Interest-Free AI Funding, Who Fits and the November 23 Deadline

Pacific Economic Development Canada (PacifiCan) is accepting applications for the Regional Artificial Intelligence Initiative (RAII) in British Columbia from businesses seeking funding beginning in 2026-27. It funds two kinds of projects: established B.C. companies putting AI to work in their operations, and companies bringing late-stage AI products to market.

It is not a grant. Businesses receive an interest-free repayable contribution of $200,000 to $5 million per project, covering up to 50% of eligible costs, repaid monthly over five years starting one year after the project ends.

The intake closes at 12:00 pm Pacific on November 23, 2026. That is about a month from today, and PacifiCan wants your matching funds confirmed when you apply, so the time to start is now. This guide covers who fits each stream, what RAII pays for, how the SR&ED cap works, and what to prepare.

RAII B.C. at a glance

The B.C. intake is part of a national program: the federal government added $500 million over five years to RAII, bringing the total to $700 million. Each regional development agency runs its own intake and terms. PacifiCan's RAII pages do not state how much of the expanded funding is allocated to British Columbia.

Who can apply: the two streams

This intake is for incorporated businesses operating in British Columbia. The stream decides the size and age tests.

Adoption stream

• Operating in British Columbia for at least three years
• 5 to 500 full-time equivalent employees
• A project that integrates and customizes AI to address specific operational needs. PacifiCan says funding is not intended to support routine purchases of off-the-shelf AI software without significant customization and integration

Commercialization stream

• Operating in British Columbia for at least one year
• 1 to 500 full-time equivalent employees
• Developing late-stage products, normally at technology readiness level (TRL) 7 to 9, and demonstrating technology. By exception, projects at TRL 6 may be considered if they show strong economic benefits or align with program priorities

Applicants in both streams must show the expected economic benefits, including full-time equivalent jobs created, revenue growth and export growth. PacifiCan's Applicant Guide explains how to set those targets.

What RAII pays for, and what it will not

Funding applies to reasonable costs that are incremental and essential to the project. PacifiCan lists these eligible costs:

• Direct labour
• Equipment and machinery
• Supplies, inputs and materials
• Contractor costs
• Professional, advisory and technical service fees
• Travel essential to the project
• Other costs related to technology development and commercial demonstration, marketing and intellectual property, or access to AI-related infrastructure, hardware, software and facility upgrades

And these as ineligible:

• Land and buildings
• Salary bonuses and dividends
• Hospitality and entertainment
• Refinancing existing debt, losses on investments, amortization or depreciation, and taxes
• Lobbying and advocacy, membership fees and donations
• Costs incurred before the project funding start date
• Ongoing operating costs, such as routine software subscriptions and licence renewals

Costs must fall between April 1, 2026 and March 31, 2031, and PacifiCan may cover retroactive costs up to 12 months before it receives your application. Spending before a decision is still at your own risk, so keep quotes and purchase orders dated and tied to the project.

Repayable, not a grant: how the money works

PacifiCan's business funding is an interest-free repayable contribution. The terms PacifiCan publishes:

• Repayment begins one year after project completion
• Repaid in monthly installments over five years
• No collateral required and no penalty for early repayment
• PacifiCan notes that Indigenous businesses may be eligible for more flexible terms
• PacifiCan pays by reimbursing claims you submit, with regular progress reports and financial statements from implementation through to the end of the repayment period

That last row is the one that catches companies out. Because funding comes by reimbursement, you carry the full cost of each period until the claim is paid. Build that into the cash flow you show PacifiCan, not just the repayment.

Stacking RAII with SR&ED and other programs

PacifiCan states that any government assistance received during the project and applied to project costs may reduce RAII funding, to keep total government support at no more than 50%. That assistance includes SR&ED credits and other federal or provincial tax credits, and PacifiCan asks applicants to exclude SR&ED-eligible costs from the application when possible.

For an AI product company this is the main planning decision. In our experience the cleanest split is to keep the uncertain development work (the experiments, model iterations and technical problems you could not solve with standard practice) in your SR&ED claim, and build the RAII budget around commercial demonstration, deployment, infrastructure, marketing and IP. Map each cost to one program before you file either. On the SR&ED side, government assistance generally reduces qualified expenditures too, and B.C. companies should run the same check on the B.C. SR&ED tax credit.

For commercialization projects, PacifiCan says a technical assessment may be done by NRC IRAP or another external party. If you already have an IRAP advisor, keep them informed: IRAP funding on the same costs also counts toward the 50% cap.

How to apply

Applications go through the PacifiCan online portal. The steps PacifiCan lists:

1. Review the eligibility requirements for your stream.
2. Read the RAII Applicant Guide for businesses in full.
3. Prepare your application and upload every mandatory supporting document in the portal.
4. Contact PacifiCan with any questions (PacifiCan.RAII-IRIA@pacifican.gc.ca).
5. Submit the application and documents through the portal before 12:00 pm Pacific on November 23, 2026.

What to prepare

• The application in the PacifiCan portal
• The RAII Supplemental Form
• The Detailed Budget Worksheet, with each cost tied to an eligible category and a quote where you have one
• The Technology Questionnaire (commercialization projects)
• Externally prepared financial statements for the past two complete financial years plus current interim statements. Commercialization applicants operating for less than two years may submit one year
• Confirmation of funding from all other sources: PacifiCan wants the 50% confirmed at application and again before approval, so a lender or investor commitment letter needs to be in hand now. PacifiCan does not accept SR&ED credit receivables as confirmation of funding
• Your economic benefit targets: jobs, revenue growth and export growth, set the way the Applicant Guide describes

PacifiCan assesses eligibility; alignment with program objectives and priorities; clear and lasting economic benefits for British Columbia; capacity to execute, including financial capacity and leverage, management capability, technology readiness for commercialization projects, data security and governance, and plans for responsible development and deployment of AI; and market demand. It notes that only the strongest projects can be funded. National priority sectors listed on the program page are health and life sciences, energy and natural resources, transportation, agriculture, and manufacturing and robotics. No decision timeline is published.

A realistic timeline to November 23

With about a month left, a workable plan:

• This week: pick the stream, confirm the years-in-B.C., FTE and TRL tests, and read the Applicant Guide
• Week 1 to 2: scope the project, collect vendor and contractor quotes, and pull SR&ED-eligible work out of the budget
• Week 1 to 3: get your 50% confirmed in writing, and have your accountant ready the two years of statements and current interims
• Week 3 to 4: complete the Supplemental Form, budget worksheet and (for commercialization) the Technology Questionnaire; upload everything and submit several days before November 23

If you cannot confirm your matching funds in time, PacifiCan says future intakes will open for SMEs and not-for-profits for investments starting after April 1, 2027. Use the time to line up financing rather than submit an incomplete file.

Common mistakes to avoid

• Calling it a grant in your plan. It is repaid over five years, starting about a year after the project ends
• An adoption project that is really a subscription to an off-the-shelf AI tool
• Applying to Commercialization with a product that is still a prototype well below TRL 7, without strong economic benefits or clear alignment with program priorities to justify the TRL 6 exception
• Matching funds that are not confirmed when you apply
• Leaving SR&ED-eligible development costs in the RAII budget, which can reduce the RAII amount
• Budgeting land, buildings, routine software subscriptions or other operating costs
• Starting the portal application and not pressing submit before noon Pacific on November 23

RAII in other regions

RAII is delivered by each regional development agency, and the terms differ. Southern Ontario businesses apply to FedDev Ontario, with an early cut-off of November 24, 2026 for projects with eligible costs before March 31, 2027 and a final deadline of January 19, 2027: see our RAII southern Ontario guide, which also tracks the other regions. For the B.C. terms in one place, see the RAII B.C. program page. B.C. companies looking at interest-free scale-up funding for non-AI projects should also read our guide to the regional agencies' Business Scale-up and Productivity programs.

Frequently asked questions

What is RAII in British Columbia?

The Regional Artificial Intelligence Initiative in B.C. is PacifiCan funding for incorporated B.C. businesses that are adopting AI (Adoption stream) or commercializing late-stage AI products (Commercialization stream). PacifiCan is accepting applications from businesses seeking funding beginning in 2026-27.

Is PacifiCan's RAII funding a grant?

No. Businesses receive an interest-free repayable contribution. Repayment begins one year after project completion, in monthly installments over five years, with no collateral and no penalty for early repayment.

When is the RAII B.C. deadline?

The business intake is open until 12:00 pm Pacific on November 23, 2026.

How much can a B.C. business get from RAII?

$200,000 to $5 million per project, up to 50% of eligible project costs. At least 50% of project funding must come from non-government sources and be confirmed at the time of application.

Who qualifies for the Adoption stream?

Incorporated businesses operating in British Columbia for at least three years with 5 to 500 full-time equivalent employees, integrating AI with significant customization to meet specific operational needs. Routine purchases of off-the-shelf AI software are not the target.

Who qualifies for the Commercialization stream?

Incorporated businesses operating in British Columbia for at least one year with 1 to 500 full-time equivalent employees, developing late-stage products normally at TRL 7 to 9 and demonstrating technology. TRL 6 projects may be considered by exception if they show strong economic benefits or align with program priorities.

Can I combine RAII with SR&ED?

Government assistance applied to project costs, including SR&ED credits and other federal or provincial tax credits, may reduce RAII funding to keep total government support at no more than 50%. PacifiCan asks applicants to exclude SR&ED-eligible costs where possible.

Can not-for-profits apply to RAII in B.C.?

Not in this intake. PacifiCan says future intakes will be available for not-for-profit organizations and SMEs for investments starting after April 1, 2027. Non-profits can contact PacifiCan.RAII-IRIA@pacifican.gc.ca.