CED — Regional Defence Investment Initiative

For small and medium-sized businesses looking to break into or expand within the defence supply chain, access to capital can be a major barrier—especially when projects involve advanced manufacturing, certification standards, or scaling for government and allied contracts. The CED — Regional Defence Investment Initiative is designed to help address that challenge by supporting projects that strengthen Canada’s defence industrial capacity and connect businesses to domestic and international opportunities. Delivered by Canada Economic Development for Quebec Regions as part of a national initiative, the program supports defence-related growth across the country, with a strong emphasis on building competitive regional ecosystems.

The initiative focuses on projects that respond to current or future needs of the Canadian Armed Forces, NATO, or allied countries. For SMEs in aerospace and defence, this can include investments to boost production capacity, improve productivity, meet defence qualification requirements, or pursue new markets and contracts. Funding levels vary by project, but support can cover a significant portion of eligible costs, with contributions to SMEs generally structured as repayable. Non-profit organizations, industry groups, and Indigenous-led organizations that support defence-focused SMEs may also access funding, often on a non-repayable basis, to deliver high-impact support and ecosystem-building activities.

With applications currently being accepted on an ongoing basis, this initiative can be a meaningful option for businesses or organizations positioning themselves within the defence sector and planning their next phase of growth. Exploring the full program details can help clarify whether your project is a strong fit.