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Regional Defence Investment Initiative (RDII)
Public Facing Frequently Asked Questions (FAQs)

Overview

1. Why was the RDII created?

A strong defence sector protects Canada’s sovereignty, supports national readiness, and contributes significantly to economic growth. RDII was created to help SMEs scale up, meet industry standards, and pursue opportunities with major defence contractors.

These investments support a more resilient, innovative, and competitive Canadian defence industrial base.

2. Why is the Government of Canada prioritizing investment in the defence sector?

Strengthening the defence sector helps Canada:

• Protect national security and sovereignty.

• Build a resilient industrial base.

• Drive technological innovation.

• Create high-quality jobs.

• Meet commitments to NATO and international partners.

RDII helps Canadian firms innovate, grow, and integrate into defence supply chains to support national and allied defence priorities.

3. Why is the initiative delivered over three years?

The RDII represents one of the Government of Canada’s Early Moves under the Defence Industrial Strategy. These actions deliver immediate impact while laying the foundation for long-term growth.

Over three years, regional development agencies (RDAs) will help businesses strengthen competitiveness, modernize operations, and prepare for future defence procurement opportunities.

4. How much RDII funding is available through ACOA?

In Atlantic Canada, ACOA will deliver $38.2 million over three years to support businesses, dual-use technologies, regional innovation networks, and strategic assets that enhance Canada’s defence and security capabilities.

5. Why is ACOA delivering this initiative?

ACOA has deep knowledge of Atlantic industries, research institutions, and innovation networks. Its on-the-ground expertise ensures federal investments reflect regional strengths, including:

• Shipbuilding and marine systems.
• Airframe and aeroengine maintenance.
• Sonar and acoustics systems.
• Training and simulation.
• Cyber resilience.
• Land vehicle solutions.

This regional insight helps integrate Atlantic businesses into global defence supply chains.

6. What will the RDII support in Atlantic Canada?

RDII will support projects that:

• Help SMEs increase productivity, meet certification standards, and pursue defence procurement opportunities.
• Advance dual-use technologies.
• Strengthen regional innovation ecosystems and infrastructure.
• Develop defence-related regional strategic assets that enhance defence readiness.

7. What are the objectives of the RDII?

The initiative aims to:

• Help SMEs grow and adopt advanced technologies.
• Strengthen regional innovation ecosystems with defence applications.
• Support defence-related regional strategic infrastructure and assets.
• Contribute to Canada’s sovereign capabilities in the defence sector.

Eligible  Costs

8. What costs are eligible under RDII?

Eligible costs must be reasonable and necessary. They may include:

• Capital costs (e.g., machinery, equipment, infrastructure).
• Materials.
• Labour (e.g., salaries, wages, benefits).
• Professional and technical services.
• Pre-production activities (e.g., technological development, demonstration).
• Commercialization and market expansion activities.
• Specialized testing, R&D, or technical services.
• Costs to meet military certifications/standards (e.g., ISO, CMMC, ADSM, TAM, JCP).
• Costs to develop capacity to bid on defence projects or build regional defence infrastructure.

9. Can applicants apply for funding retroactively?

Yes. Eligible costs may be considered up to 12 months prior to the date ACOA receives a completed application, but not before April 1, 2025.

Defence-Related Considerations

10. What is considered a military-focused project?

A project is military-focused if it supports:

• Defence capabilities or procurement opportunities.
• Technologies, products, or services used by the CAF or Allies, including NATO.
• Infrastructure that enhances CAF presence / operations. SMEs working toward meeting defence standards or certifications.

The application should outline the intended defence use or market.

11. What are “dual-use technologies”?

Dual-use technologies have both civilian and military applications (e.g., advanced materials, sensors, marine robotics, artificial intelligence).

Projects must show how the technology creates a sustained operational or technical advantage for the military.

12. How does the Buy Canadian Policy relate to RDII?

Projects aiming to integrate into defence supply chains are encouraged to:

• Source Canadian equipment, materials, or services when feasible.
• Support domestic suppliers contributing to defence-related capabilities.

This strengthens Canada’s defence industrial ecosystem.

Financial Assistance

13. What is the maximum rate of assistance?

The rate of assistance will be limited to the minimum amount required for the project.

• Commercial projects will normally be funded up to 75% of eligible costs.
• Non-commercial projects may be funded up to 90% of eligible costs.
• Projects with Indigenous entities may be funded up to 100% of eligible costs.

14. What are the stacking limits for total government funding?

Total government assistance from all levels of government will not normally exceed 100% of eligible costs.

15. How will information about RDII-funded projects be made public?

Approved RDII projects will be:

• Proactively disclosed on the Open Government website.
• Highlighted through ACOA news releases and events, where appropriate.