Regional Defence Investment Initiative – Northern Ontario

• The applicant must be an incorporated business (including Indigenous businesses) in Northern Ontario, or positioning itself within defence supply chains, or an eligible not-for-profit/industry association/Indigenous-led organization (First Nation/Métis/Inuit).
• The project must be military-first, qualify under the NATO spending target, and clearly demonstrate a specific military need.
• The project must strengthen Canada’s defence industrial and innovation capabilities (including integrating SMEs into domestic and/or international defence supply chains).
• If the project involves dual-use technology, it must include a defined and measurable military component with a defence or military application.
• The applicant must be able to enter into a legally binding agreement and demonstrate the managerial, technical, and operational capacity to complete the project by March 31, 2028.

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

• 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.

• 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.