Canada’s federal defence spending is growing, with billions of dollars flowing through military procurement and defence supply chains each year. Indigenous businesses have real opportunities to participate. The government sets aside some contracts for Indigenous suppliers and offers special funding to help you become “defence-ready.” However, figuring out where to start can be confusing.
This guide explains how Indigenous businesses can access federal defence and procurement funding. It highlights the CanNor — Regional Defence Investment Initiative (RDII) and other federal options.
Indigenous businesses often get involved in the defence sector in one or both of these ways.
This pathway is about contracts, not grants.
The main program is the Procurement Strategy for Aboriginal Businesses (PSAB), managed by Indigenous Services Canada.
What PSAB Does:
Who Can Apply:
PSAB does not provide grant money to help your business grow. Instead, it helps you access government contracts. Many Indigenous businesses use programs like RDII to build up their skills and resources first. Later, they pursue procurement contracts. If you want to see which procurement programs fit your business, GrantHub’s tools can help you check your eligibility.
This is where the Regional Defence Investment Initiative (RDII) helps.
RDII is a federal program delivered by Canada’s regional development agencies. In the North, CanNor manages the program.
The CanNor — Regional Defence Investment Initiative supports Indigenous and northern businesses that work in, or want to enter, defence supply chains.
Who Can Apply:
What RDII Does:
Examples of Eligible Projects:
How Funding Works:
Project Timing:
You can use GrantHub’s eligibility checker to see if RDII or other defence programs match your business and region.
RDII is not meant to stand alone. It is designed to work with other programs.
Some related programs include:
Important: You cannot send in multiple applications for the same project to the same regional agency. Each project you apply for must be clearly different from any other funded work.
RDII is for defence-related projects only. Your project must clearly connect to defence supply chains or military-focused uses.
If your business is not listed in the Indigenous Business Directory, you could miss out on future procurement contracts.
Some RDII funding must be paid back. Make sure you understand the terms. Plan your cash flow so you are prepared. For more details, see Repayable vs Non-Repayable Business Funding in Canada.
If you already have an active project with a regional development agency, your new RDII application must be for a separate project.
Q: Do Indigenous businesses get priority under RDII?
Indigenous recipients are clearly eligible. Some regions offer higher funding coverage for Indigenous-owned businesses. Final decisions depend on your project and local priorities.
Q: Is RDII funding a grant or a loan?
RDII uses contribution funding. For businesses, this is often repayable. Not-for-profits usually get non-repayable funding. Indigenous recipients may get more flexible terms.
Q: Do I need an existing defence contract to apply?
No. RDII supports businesses that are preparing to join defence supply chains, not just those with current contracts.
Q: What types of expenses are usually eligible?
Eligible costs often include equipment, technology upgrades, certifications, and activities linked to entering defence markets. General operating costs are usually not eligible.
Q: Can RDII help with export defence markets?
Yes. Projects that help you join international defence supply chains are eligible, as long as they fit Canadian defence priorities.
Federal defence and procurement funding can seem complicated. Indigenous businesses are included and supported in these programs. The key is to match your business stage to the right mix of procurement opportunities and capacity-building funding. Try breaking the process into simple steps. First, get listed in the Indigenous Business Directory. Then, look for funding that helps your business build capacity.
To see which federal and Indigenous-focused programs you qualify for, including RDII streams in your region, visit GrantHub and check your eligibility.
See also
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