Defence and aerospace opportunities are growing quickly in Atlantic Canada, but many small businesses find it hard to access the funding they need to join Canadian defence supply chains. The ACOA Regional Defence Investment Initiative (RDII) helps close this gap by supporting projects that build defence-related capacity, technology, and skills in the Atlantic provinces. The program is run by the Atlantic Canada Opportunities Agency (ACOA) and is currently open.
The Regional Defence Investment Initiative supports projects that strengthen Canada’s defence industrial base, with a special focus on Atlantic Canada. Funding is usually provided as a non-repayable contribution.
You can apply if your organization is in Newfoundland and Labrador, Nova Scotia, Prince Edward Island, or New Brunswick and fits one of these groups:
The amount of funding depends on your project and organization type:
There is no fixed maximum dollar amount. ACOA decides funding based on your project’s size, impact, and how much it helps the defence sector in Atlantic Canada..
This program allows you to combine, or “stack,” funding with other government sources, up to 100% of total eligible project costs. This makes RDII a strong option when used together with other federal, provincial, or municipal support.
For more on this, see: How to stack grants and loans without violating funding rules.
The RDII offers several advantages to organizations working in the Canadian defence sector:
Using tools like the GrantHub eligibility matcher can help you quickly find which defence and aerospace programs fit your organization.
The RDII focuses on practical projects that build capacity in Atlantic Canada’s defence sector. Eligible activities include:
A good guideline: Your project should clearly show how it will improve defence readiness, supply chains, or innovation in Atlantic Canada.
ACOA does not use a simple online form. Instead, applications are based on relationships and specific project details.
Define your project
Write out your goals, timeline, total costs, and how the project supports Canadian defence supply chains.
Check eligibility early
Make sure your organization type, location, and activities match RDII requirements.
Contact ACOA directly
Start by talking to an ACOA regional office. They will let you know if you should move forward with a formal proposal.
Prepare a detailed proposal
You’ll need to include:
Answer follow-up questions
ACOA may ask for more information or changes before they make a decision.
Q: Do I need existing defence clients to apply?
No. Businesses developing dual-use technologies or planning to join Canadian defence supply chains can apply.
Q: Is the funding repayable?
The program usually provides non-repayable contributions, especially for non-commercial and ecosystem projects.
Q: Are Indigenous-led projects treated differently?
Yes. Indigenous organizations may receive up to 100% of eligible costs.
Q: Can municipalities apply directly?
Yes. Provincial and municipal governments can apply for projects that help grow the regional defence sector.
Q: What expenses are most often approved?
Research and development, equipment, facility upgrades, certification, and supply-chain integration are common eligible costs.
GrantHub tracks hundreds of active grant programs across Canada, including defence and aerospace funding, making it easier to see which ones fit your needs.
If your organization is in Atlantic Canada and has a defence-related project, the ACOA Regional Defence Investment Initiative is a flexible funding option. Start by outlining your project and checking your eligibility with ACOA. After that, you can use GrantHub or similar tools to see how RDII works with other federal and provincial programs that support defence, innovation, and advanced manufacturing.
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