Administered by Federal Economic Development Agency for Southern Ontario (FedDev Ontario) · Funded by Government of Canada, FedDev Ontario
Interest-free repayable FedDev funding, $125K to $5M at up to 50%, for southern Ontario firms adopting or scaling AI. Early cut-off Nov 24, 2026.
The Regional Artificial Intelligence Initiative (RAII) in southern Ontario is FedDev Ontario's 2026-27 intake for businesses adopting artificial intelligence or bringing AI products to market. It runs two streams. AI Adoption supports established businesses (at least 3 years of financial statements, 5 to 499 full-time equivalent employees) integrating AI that goes beyond commonly available AI tools; priority sectors may include healthcare and life sciences, energy and natural resources, transportation, agriculture, and manufacturing and robotics. AI Commercialization and Scale-Up supports businesses with at least 1 year of financial statements, at least 1 FTE in southern Ontario and fewer than 500 FTE that are bringing an AI or AI-driven solution at technology readiness level 6 or higher to market and scaling it. FedDev contributes $125,000 to $5 million per project, up to 50% of eligible costs, as a fully repayable, interest-free contribution; repayment normally begins 1 year after the project is completed. This is not a grant. Applications have been accepted since October 13, 2026. Projects whose eligible costs start before March 31, 2027 must apply by November 24, 2026; the final deadline is January 19, 2027 at 4:59 p.m. Eastern Standard Time. The intake follows a federal announcement on October 13, 2026 of $500 million in new RAII funding over five years, bringing the national initiative to $700 million; each regional development agency runs its own intake.
The total program pool, per-organization max, and what your contribution has to be.
This program does not publish an aggregate annual funding pool.
$125,000 to $5 million per project, up to 50% of eligible costs, interest-free and fully repayable. One FedDev Ontario application at a time.
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Find your matches →RAII is patient, interest-free capital, not free money: plan the repayment from the start. The two questions FedDev will press on are whether the project goes beyond off-the-shelf AI (Adoption) or rests on a TRL 6+ product with real traction (Commercialization), and whether you can fund your 50% in cash and repay. If any eligible cost lands before March 31, 2027, the deadline that matters is November 24, 2026. The application guide states TRL 6+ for projects generally while the who-can-apply page ties it to Commercialization, so adoption applicants should confirm with FedDev.
The practical sequence, from a firm that files these claims every week.
Check the AI Adoption (3+ years, 5 to 499 FTE, AI beyond common tools) or AI Commercialization and Scale-Up (1+ year, 1+ FTE in southern Ontario, TRL 6+) tests, and that you own the project IP. Confirm with FedDev if your adoption project is below TRL 6.
If the project and eligible costs start before March 31, 2027, apply by November 24, 2026. Otherwise the final deadline is January 19, 2027, 4:59 p.m. EST.
Secure cash matching funds (forecast revenue and in-kind do not count), get quotes, separate capital from non-capital costs, and keep SR&ED-eligible costs out where possible.
Download the PDF Application for Funding (For-Profit Applicants) and the mandatory RAII Supplemental Form, open them in Adobe Acrobat Reader, name the stream in question 22, and attach statements, 3 to 5 year projections, articles of incorporation, bios, structure diagram and work plan.
FedDev emails an acknowledgement with the date and time. A technical assessment may be done by NRC IRAP or another party. If approved, sign the contribution agreement within 30 days with proof of matching funds.
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No. FedDev Ontario's RAII contribution is fully repayable and interest-free. Repayment normally begins 1 year after the project is completed. FedDev has not published the length of the repayment term.
Apply by November 24, 2026 if your project and eligible costs start before March 31, 2027. The final deadline for all other projects is January 19, 2027 at 4:59 p.m. Eastern Standard Time.
$125,000 to $5 million per project, up to 50% of eligible costs. You fund at least 50%, and forecast revenue and in-kind contributions cannot count toward your share. Total government assistance is capped at 50% of eligible capital costs and 75% of eligible non-capital costs (up to 100% for Indigenous-led projects).
SR&ED tax incentives count as other government assistance, and FedDev asks applicants to exclude SR&ED-eligible costs from the application where possible.
A consultant can help you prepare, but cannot be the authorized project or financial contact; those must be company officers. Fees paid to consultants to prepare the application are not eligible costs.
Changes to the program tracked by our team.
Intake open since October 13, 2026: Nov 24, 2026 cut-off for projects with costs before Mar 31, 2027; final deadline Jan 19, 2027, 4:59 p.m. EST. FedDev pages modified Oct 13, 2026, rechecked Oct 15.
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