Aerospace Regional Recovery Initiative

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).


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.


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