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Source verified July 2, 2026
Regional Defence Investment Initiative – Northern Ontario
Supports Northern Ontario SMEs entering defence supply chains
Funding available
Up to 100% of project cost
Deadline
Open continuously
Location
Ontario, Canada
Who can apply
Incorporated businesses (including Indigenous businesses: First Nation/Métis/Inuit) seeking to integrate into defence supply chains
See full eligibility
Overview
The Regional Defence Investment Initiative (RDII) – Northern Ontario provides repayable contributions of up to 75% of eligible costs for businesses, non-repayable contributions of up to 90% for eligible not-for-profits, and up to 100% for eligible Indigenous recipients to help SMEs and organizations integrate into domestic and international defence supply chains and strengthen Canada’s defence industrial and innovation capacity. Eligible activities must be military-first and may include digitization and automation, market expansion and commercialization, defence certifications, equipment and facility modernization, dual-use technology adaptation, TRL 7–9 R&D, and pre-construction readiness work for defence-related infrastructure.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Develop strategic partnerships
- Increase production or service capacity
Eligible Funding
- Up to 100% of project cost
Eligible candidates
Eligible Industries
- All industries
Location
- Ontario
Legal structures
- For-profit business
- Non-profit
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Indigenous Peoples
- Rural or Northern Residents
Non-profit candidates
Sector of operation
- Research
- Economic, Social and Community Development
- Business Associations
Target groups
- All the groups
Revenue structures
- All structures
Scope
- All dimensions
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Scale-up projects that increase defence-related production and innovation capacity, improve productivity/competitiveness, and help integrate into domestic or international defence supply chains.
- Market development and commercialization projects (including technology showcases) that support entry into defence supply chains and new defence markets.
- Projects to achieve defence certifications/qualification standards needed to bid on defence work and integrate into defence supply chains.
- Development, adoption, or improvement of dual-use technologies with a defined and measurable military component, including late-stage R&D (TRL 7–9) and commercial demonstration.
- Regional innovation ecosystem or strategic asset projects that strengthen Northern Ontario’s defence ecosystem (e.g., technical/business support services for SMEs, collaborative industrial research, and preparatory work for small defence-linked infrastructure projects).
Official resources
Eligibility
Who is eligible?
- Incorporated businesses (including Indigenous businesses: First Nation/Métis/Inuit) seeking to integrate into defence supply chains
- Small and medium-sized enterprises (SMEs) in Northern Ontario (or positioning themselves) to participate in defence supply chains
- Not-for-profit organizations providing technical/business support services to SMEs for defence supply chain development and integration
- Industry associations involved in strengthening regional defence and security innovation ecosystems
- Indigenous-led organizations (First Nation/Métis/Inuit)
Who is not eligible
- Non-incorporated businesses (e.g., sole proprietors that are not incorporated).
- Organizations that cannot demonstrate a clear military-first project aligned with a specific military need (including dual-use projects without a defined and measurable military component).
- Applicants seeking funding for basic research activities.
- Applicants whose project costs were legally committed/incurred before April 1, 2025.
- Applicants whose project includes ineligible expenditures such as land/building acquisition, lobbying, entertainment, debt refinancing, or ongoing operating/regular maintenance costs.
Eligible expenses
- Incremental labour costs directly related to the project (wages and benefits).
- Materials used that are incremental and directly related to the project.
- Capital purchases such as machinery, equipment, and infrastructure.
- Consulting and professional/technical service fees needed to advance the project (including pre-construction readiness support).
- Pre-production costs (e.g., technology development and commercial demonstration).
- Costs to commercialize products and to expand or maintain markets.
- Specialized services (e.g., testing, research and development services, technical or innovation services).
- Costs for required military certifications and standards to bid on defence projects (e.g., TAM, JCP, ADSM, CMMC, ISO, technical and engineering standards).
Eligible geographic areas
- Northern Ontario
Selection criteria
- Ability to enter into a legally binding agreement.
- Managerial, technical, and operational capacity to achieve the project’s objectives by March 31, 2028.
- Quality of the project plan and budget, including project readiness and the financial ability to complete the project (and ability to repay, if applicable).
- Expected results and benefits accruing to Northern Ontario (including regional impact).
- Overall project risk level and the strength of mitigation measures.
How to apply
- Step 1: Review application guide (FedNor)
- Review the initial application guide before starting the application.
- Step 2: Discuss proposal with FedNor (pre-application call)
- Call 1-877-333-6673 to discuss your proposal with a FedNor Officer in your area.
- Use the discussion to help begin the application process.
- Step 3: Apply via FedNor self-service portal (two-phase process)
- Submit your application through the FedNor self-service portal.
- Follow the two-phase application process in the portal.
Additional information
- Funding is available only for activities carried out between April 1, 2025, and March 31, 2028, and projects must be completed by March 31, 2028.
- Eligible costs may be retroactive up to 12 months before the application is received, but not earlier than April 1, 2025.
- All supported activities must be military-first and qualify under the NATO spending target, with a clear link to a specific military need.
- Submitting an application does not guarantee approval; approvals depend on assessment outcomes and funding availability.
Contacts
Frequently Asked Questions about the Regional Defence Investment Initiative – Northern Ontario Program
What is the Regional Defence Investment Initiative – Northern Ontario?
The Regional Defence Investment Initiative (RDII) – Northern Ontario provides repayable contributions of up to 75% of eligible costs for businesses, non-repayable contributions of up to 90% for eligible not-for-profits, and up to 100% for eligible Indigenous recipients to help SMEs and organizations integrate into domestic and international defence supply chains and strengthen Canada’s defence industrial and innovation capacity. Eligible activities must be military-first and may include digitization and automation, market expansion and commercialization, defence certifications, equipment and facility modernization, dual-use technology adaptation, TRL 7–9 R&D, and pre-construction readiness work for defence-related infrastructure.
How much funding can be received?
Regional Defence Investment Initiative – Northern Ontario Funds up to 100% of admissible expenses.
Who is eligible for the Regional Defence Investment Initiative – Northern Ontario program?
To be eligible for the Regional Defence Investment Initiative – Northern Ontario program, you must:
Incorporated business (including Indigenous) in/positioning for defence supply chains
Able to enter a legally binding agreement
Capacity to deliver project by March 31, 2028
What expenses are eligible under Regional Defence Investment Initiative – Northern Ontario?
Scale-up projects that increase defence-related production and innovation capacity, improve productivity/competitiveness, and help integrate into domestic or international defence supply chains.
Market development and commercialization projects (including technology showcases) that support entry into defence supply chains and new defence markets.
Projects to achieve defence certifications/qualification standards needed to bid on defence work and integrate into defence supply chains.
Development, adoption, or improvement of dual-use technologies with a defined and measurable military component, including late-stage R&D (TRL 7–9) and commercial demonstration.
Regional innovation ecosystem or strategic asset projects that strengthen Northern Ontario’s defence ecosystem (e.g., technical/business support services for SMEs, collaborative industrial research, and preparatory work for small defence-linked infrastructure projects).
Who can I contact for more information about the Regional Defence Investment Initiative – Northern Ontario?
You can contact Federal Economic Development Agency for Northern Ontario (FedNor) or by phone at 1-877-333-6673.
Where is the Regional Defence Investment Initiative – Northern Ontario available?
The Regional Defence Investment Initiative – Northern Ontario program is available the province of Ontario.
Is the Regional Defence Investment Initiative – Northern Ontario a grant, loan, or tax credit?
Regional Defence Investment Initiative – Northern Ontario is a Grant and Funding