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RegionalLoanCanadaNiche: Defence and dual-use supply chain integration for SMEs

Regional Defence Investment Initiative (RDII)

Administered by Canada's regional development agencies (ACOA, CED, CanNor, FedNor, FedDev Ontario, PrairiesCan, PacifiCan) · Funded by Government of Canada, Defence Industrial Strategy

Repayable funding up to 75% of eligible costs for SMEs entering defence supply chains; non-repayable up to 90% for non-profits. Projects end March 31, 2028.

Per-organization
Varies
Deadline
Rolling intake
Decision
Varies
Program share
Up to 75%

About the program

The Regional Defence Investment Initiative (RDII) is a $379.2 million, three-year federal initiative delivered by Canada's seven regional development agencies to support Canada's defence and security needs while strengthening regional economic development. It aims to accelerate the integration of businesses and regional ecosystems into domestic and international defence supply chains and to increase their industrial and innovation capacity. Funding is available for eligible activities undertaken between April 1, 2025 and March 31, 2028. Contributions to businesses, mainly SMEs, are repayable; FedNor, CED and PrairiesCan state a maximum of 75% of eligible costs, and PrairiesCan says repayable contributions are generally repaid with no interest over 5 years, starting 1 year after the project ends. Not-for-profit organizations that support businesses can receive non-repayable contributions of up to 90%, and eligible Indigenous recipients up to 100%. Projects must be driven by a defence or military need; dual-use projects need a defined and measurable military component. Each agency runs its own intake: as of October 9, 2026, FedNor assesses applications as received subject to funding, CED is accepting applications, PrairiesCan accepts applications until December 31, 2027 or until funding is used, ACOA asks applicants to contact a regional office, FedDev Ontario has paused intake, and PacifiCan's RDII page shows a status of not currently accepting applications.

Capital & equipmentCommercializationNew markets / diversification
◆ Funding structure

How much is on the table

The total program pool, per-organization max, and what your contribution has to be.

Total program pool
Not disclosed

This program does not publish an aggregate annual funding pool.

Per organization
Varies

Businesses: repayable contributions, generally up to 75% of eligible costs (FedNor, CED, PrairiesCan). Not-for-profits: generally non-repayable, up to 90%. Eligible Indigenous recipients: up to 100%. Most agencies publish no per-project maximum.

◆ Your fit

Does your organization qualify?

Run your business through the Grant Finder for a live eligibility check against every requirement in this program.

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◆ GovMoney analysis

Worth applying?

RDII is a defence-first program, not a general manufacturing fund. The question every agency asks is what specific military need the project serves and which defence supply chain you are entering. For businesses the money is repayable, so treat it as patient, low-cost capital and plan the repayment. Intake depends on your region: FedNor, CED and PrairiesCan were taking applications on October 9, 2026, while FedDev Ontario and PacifiCan were not. Projects must finish by March 31, 2028; in our view, a project that needs more than about 18 months should start soon.

◆ Application

How to apply

The practical sequence, from a firm that files these claims every week.

  1. 1

    Confirm your agency and its intake status

    Same day

    RDII is delivered by the regional development agency where the project takes place. Check that agency's RDII page: some are accepting applications, some have paused.

  2. 2

    Define the military need

    1 to 2 weeks

    Document the defence customer, prime contractor or supply chain you are entering and the specific military requirement the project serves. Dual-use projects need a defined, measurable military component.

  3. 3

    Talk to an agency officer

    1 to 3 weeks

    FedNor and ACOA point applicants to an officer or regional office; PrairiesCan offers a phone line (1-888-338-9378). Use the conversation to test fit and the funding type.

  4. 4

    Submit the application

    2 to 4 weeks to prepare

    Apply through the agency's portal or application process with the project plan, budget, quotes, financial statements and confirmation of other funding sources.

  5. 5

    Due diligence and contribution agreement

    Varies by agency

    The agency assesses the project and your capacity to deliver by March 31, 2028. Funding is not guaranteed and depends on available budget.

Required documents

What you need ready before you apply.

  • Project description showing the military or defence need and the supply chain being entered
  • Project budget with supplier quotes for equipment and services
  • Recent financial statements and financial projections
  • Confirmation of other funding sources (PrairiesCan requires funding from all other sources confirmed at submission)
  • Corporate documents (articles of incorporation)
◆ We can file this for you

Skip the paperwork — hand it off

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◆ Done-for-you filing

Let GovMoney handle the paperwork

PhDs, CPAs, and ex-CRA auditors prepare, submit, and defend your application — audit-ready, on a success-fee basis. You stay focused on the business; we handle the forms, the narrative, and the back-and-forth with the agency.

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Program FAQ

Questions we get from applicants every week.

Is RDII a grant?+

Not for businesses. Contributions to businesses are repayable. FedNor, CED and PrairiesCan state a maximum of 75% of eligible costs, and PrairiesCan says repayable contributions are generally repaid with no interest over 5 years, starting 1 year after the project ends. Non-profits that support businesses can receive non-repayable contributions, generally up to 90%.

Which agencies are accepting RDII applications?+

As of October 9, 2026: FedNor (Northern Ontario) assesses applications as received, subject to funding; CED (Quebec) is accepting applications; PrairiesCan accepts applications until December 31, 2027 or until funding is used; ACOA asks applicants to contact a regional office. FedDev Ontario has paused intake and PacifiCan's page shows a status of not currently accepting applications.

Does my project have to be military?+

Yes. Projects must be driven by a defence or military need. Dual-use projects qualify only when they have a defined and measurable military component.

How far back can costs go?+

FedNor and PrairiesCan allow costs up to 12 months before the application is received, but never earlier than April 1, 2025. All projects must be completed by March 31, 2028.

How much is available?+

RDII is a $379.2 million, three-year national initiative split across the seven regional development agencies. ACOA's share is $38.2 million. Most agencies publish no per-project maximum; FedDev Ontario listed $125,000 to $10 million and PacifiCan $100,000 to $10 million, but both were not taking applications on October 9, 2026.

Recent updates

Changes to the program tracked by our team.

  • 2026-10-09

    Intake check: FedNor, CED and PrairiesCan taking applications; ACOA by contact with a regional office; FedDev Ontario intake paused; PacifiCan page status shows not currently accepting applications.

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◆ Next steps

Your path forward

Three concrete moves. Do them yourself or hand off to GovMoney.

1

Determine your project

Scope the specific R&D activity, purchase, hire, or export initiative that maps to this program's eligibility. Ambiguous project scope is the #1 rejection driver.

2

Validate your eligibility

Run your business through the Grant Finder to confirm fit against this program's requirements — and see every other program you qualify for.

3

File the application

Two paths: prepare and file it yourself using the how-to-apply steps above, or hand it off to GovMoney's team and get it done audit-ready.

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◆ Get moving

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