Amount: repayable funding up to $10 million.

The Regional Defence Investment Initiative (RDII) is a $357.5-million national program delivered through Canada’s regional development agencies to meet the country’s defence and security needs while driving regional economic growth. FedDev Ontario’s share of this funding exceeds $90 million. Recognizing the strategic importance of the defence sector in southern Ontario, the agency is committing an additional $106 million from its existing resources – bringing its total support for defence-related projects to nearly $200 million.

Under RDII, FedDev Ontario will fund targeted projects that help businesses and organizations enter or expand within defence supply chains and build their industrial and innovation capacity.

Eligibility requirements

Eligible applicants include:

  • For-profit incorporated businesses that are:

    • located and operating in southern Ontario

    • employing at least 5 full-time equivalent staff in the region

    • currently part of defence supply chains or seeking to become part of them

  • Not-for-profit incorporated organizations in southern Ontario that support businesses or capability development within the defence sector.

Funding

Businesses may request repayable funding ranging from $125,000 to $10 million.

Not-for-profit organizations may request non-repayable funding ranging from $125,000 to $10 million.

Deadline

Applicants, which proposed project and eligible costs start before March 31, 2026, should apply by January 21, 2026.

For project and proposed activities on or after April 1, 2026, applications will be accepted until funding is fully committed.