Aerospace Regional Recovery Initiative – Aerospace sector recovery interest-free loan

Amount: up to 50 percent of eligible costs with up to 10 million per project.

The Aerospace Regional Recovery Initiative (ARRI) is an interest-free loan, with the main objective to support small- and medium-sized enterprises (SMEs). This initiative will help the Canadian aerospace sector emerge from the pandemic with the capacity to compete on the global stage. With a total budget of $250 million over three years (until March 31, 2024), this initiative is being delivered by Canada’s regional development agencies (RDAs).

Eligibility Criteria

  • Businesses operating in the aerospace industry, as well as the organizations that support them, are eligible to apply.
  • Small- and medium-sized enterprises (SMEs).

Eligible Activities

  • Transition towards greener products and operations or environmentally sustainable practices, such as adoption and commercialization of clean tech products and services or electrification to support a lower carbon footprint.
  • Improvement of productivity, such as advanced manufacturing and Industry 4.0, scale-up of high-potential firms, artificial intelligence and cybersecurity or workforce and skills development.
  • Commercialization and integration into supply chains such as integration of new start-ups and new technologies in key aspects of the value chain.

Eligible Costs

  • Labour: incremental salaries and benefits for individuals employed for the project may be eligible should they meet the following conditions:
    1. The recipient confirms that it is not economically feasible to tender a contract
    2. Costs are for those employed directly in respect of the work that would have been the subject of the contract, or
    3. Labour hired to work exclusively on the project (i.e., not existing employees of the recipient)
  • Expertise: incremental fees paid to professional, technical personnel, consultants, engineers or contractors.
  • Facility construction/renovation: these are costs typically associated with renovations, site improvements, leasehold improvements and related costs to support the outcomes of the project.
  • Equipment purchase/installation: the purchase and/or installation of equipment, machinery or software directly related to, or necessary for, the completion of the project.
  • Other direct project costs (indicate as required in the spaces provided).

Program’s Budget

The ARRI will provide $250 million over three fiscal years (2021-2022 to 2023-2024) across Canada to support the recovery of the aerospace sector.

Selection Criteria

Four priorities have been identified for the ARRI. Priority may be given to projects that meet one or more of the following priorities.
• Transition to the greening of products or operations / environmentally sustainable practices;
• Generating important economic benefits and promoting business development of regions; and improving resilience and international competitiveness of the aerospace sector;
• Improving inclusivity and diversity by addressing barriers faced by certain population groups; or
• Supporting the digital adoption of the aerospace industry and enhanced cybersecurity


Eligible businesses could receive interest-free repayable contributions for up to 50 percent of eligible costs. Project contribution amounts would not normally exceed $10 million.

Review Timeline

Applications are reviewed in general within 4 months following the submission.

Reimbursement Schedule

The government provides successful applicants with interest-free loans on a quarterly basis based on the costs the applicants incurred in the previous quarter. The applicant pays the loan back within 5 to 7 years following project completion.

Eligibility timeline

Applications are being accepted on an ongoing basis until funding is fully committed.

How to Start My Application

Start by verifying your eligibility through our eligibility check form.

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