Regional Innovation Ecosystems (REGI): Eligible Expenses for Not-for-Profits

If you run a not-for-profit that supports startups, scaleups, or regional clusters, REGI funding can cover a large share of your project costs. The challenge is knowing which expenses are actually eligible and which ones will be rejected during assessment. Under the Regional Innovation Ecosystems (REGI) program, eligible expenses are closely linked to activities that strengthen regional innovation and business growth.

REGI is delivered by different federal regional development agencies. The rules are similar across Canada, but cost-sharing limits can vary slightly depending on your region.

What Is REGI and Who It’s For

The Regional Innovation Ecosystems (REGI) program supports organizations that build and strengthen innovation ecosystems across Canada. It does not fund individual businesses directly. Instead, it funds organizations that provide services to businesses.

Eligible not-for-profit applicants include:

Not-for-profit organizations that support or generate benefits for businesses
Business incubators and accelerators
Municipalities and regional or county municipalities
Consortia or associations (including NPOs, post-secondary institutions, and industry groups)
Indigenous communities and Indigenous-led organizations

Depending on the delivery agency:

REGI can fund up to 90% of eligible project costs for not-for-profits in Quebec (CED-Q).
REGI can fund up to 75% of eligible project costs in Northern Ontario (FedNor).

Capital projects often have lower cost-sharing limits.

Types of REGI Eligible Expenses

Eligible expenses must be directly tied to approved project activities and be reasonable, incremental, and well-documented. To help applicants, REGI expenses are grouped into key categories.

Labour and Professional Fees

REGI commonly covers people costs tied to delivering ecosystem services. Eligible expenses include:

Salaries and benefits for project staff
Program managers, innovation advisors, and ecosystem coordinators
Technical experts, mentors, and trainers (internal or contracted)
Professional fees for consultants (such as strategy, commercialization, or evaluation work)

Only the portion of time spent on the REGI project is eligible. General overhead staff are usually not fully covered.

Program Delivery, Equipment, and Facilities

Program Delivery and Operating Costs

These expenses are eligible when they support businesses and innovators:

Costs to deliver incubation or acceleration programs
Training workshops, mentorship sessions, and networking events
Costs related to commercialization support or market development services
Outreach and engagement activities tied to ecosystem growth

A tool like GrantHub’s eligibility matcher can help you filter REGI programs by region and see which delivery costs are typically accepted.

Equipment and Technology

REGI may cover equipment if it is essential to the project, such as:

Shared-use equipment for incubators or innovation hubs
Digital platforms used to deliver programming or services
Software licenses tied directly to project activities

Capital costs are usually capped at a lower percentage. For example, not-for-profits in Quebec may see a cap of 50% of eligible capital costs. These costs must be clearly justified.

Facilities and Space Costs

Eligible expenses can include:

Rent or lease costs for project-specific space
Costs to operate innovation hubs or shared workspaces
Minor renovations directly related to the project

Major real estate purchases are generally not eligible unless explicitly approved.

Travel, Outreach, and Other Direct Project Costs

Travel and Outreach

REGI may reimburse:

Travel costs for staff delivering services across the region
Travel related to partnership development or investor attraction
Costs to support collaboration among ecosystem partners

All travel must follow federal reimbursement guidelines and be clearly tied to project outcomes.

Other Direct Project Costs

Depending on the project, REGI can also support:

Evaluation and performance measurement costs
Communications related to ecosystem engagement (not general marketing)
Costs to attract foreign investment or external partners

Stacking with other government funding may be allowed, but total government assistance cannot exceed program limits.

Common Mistakes to Avoid

Claiming general operating expenses
Core organizational overhead not tied to the project is often rejected.
Overestimating staff time
Assessors look closely at timesheets and role descriptions.
Including ineligible capital purchases
Buildings, major renovations, or long-term assets may be capped or excluded.
Assuming all REGI streams are the same
Cost rules vary slightly by delivery agency and region.

Frequently Asked Questions

Q: Is REGI funding repayable for not-for-profits?
No. REGI generally provides non-repayable contributions for eligible not-for-profit projects.

Q: Can REGI cover 100% of project costs?
No. REGI typically covers up to 75% or 90% of eligible costs, depending on the region and project type.

Q: Are businesses allowed to apply directly to REGI?
No. REGI is for organizations that support businesses, not individual companies.

Q: Can we combine REGI with provincial or municipal funding?
Sometimes. Stacking is allowed in many cases, but total government funding cannot exceed program limits.

Q: Is REGI only available in Quebec?
No. REGI is delivered nationally through different federal agencies, including CED-Q and FedNor.

GrantHub tracks hundreds of active grant programs across Canada—including REGI streams by region—so you can quickly see which ones match your organization’s profile.

What expenses are eligible under regional economic development grants?
How to stack grants and loans without violating funding rules
What Business Expenses Are Eligible Across Canadian Grants and Loans?

Next Steps

REGI can be a valuable funding source for not-for-profits that support innovation, but only if your budget aligns with eligible expenses. Before you apply, make sure every cost is mapped directly to a project activity and regional outcome. You can use GrantHub to compare REGI streams by region and identify other ecosystem grants that may fit your organization’s mandate.

Regional Innovation Ecosystems (REGI): Eligible Expenses for Not-for-Profits