Government Funding

Aerospace Regional Recovery Initiative: $250M to Support Canada’s Aerospace Sector

Earlier this month, Prime Minister Justin Trudeau revealed a federal government investment of $440 million to support innovation and jobs creation for Canada’s aerospace industry. With additional support from the Quebec government, the total allocation comes to $693 million.

Of that investment, the newly announced Aerospace Regional Recovery Initiative (ARRI) will provide $250 million over the next three years to support recovery from COVID-19 for small and medium-sized aerospace sector businesses across Canada.

Canada’s aerospace industry was one of the hardest hit sectors during the pandemic due to significantly reduced travel and long-term border closures. Government leaders emphasize the need for continued support of small and medium-sized aerospace businesses to help them return to thriving capacities.

Perhaps most importantly, the aerospace sector is moving toward more environmentally conscious developments, so it’s critical that Canadian aerospace companies receive financial support to sustain innovation and cleantech efforts flying forward.

Funding Snapshot: Aerospace Regional Recovery Initiative

The Aerospace Regional Recovery Initiative (ARRI) aims to support Canada’s aerospace sector businesses in regaining capacity for strong economic growth following the global COVID-19 pandemic, with a focus on cleantech innovation and jobs creation projects.

With a total budget of $250 million in funding available until March 31, 2024, the ARRI is being administered through Canada’s regional development agencies (RDAs). In southern Ontario, the funding is being monitored, assessed, and delivered via FedDev Ontario.

The ARRI federal funding program will support aerospace-based small and medium-sized businesses in three key objectives:

  1. To adapt and adopt business operations to be more environmentally sustainable; and
  2. To improve clean technology productivity in overall business processes; and
  3. To strengthen market commercialization by increasing expansion into regional and global supply chains.

Amount of Funding

  • Contributions to SMEs are generally zero-interest repayable or conditionally repayable loans
  • Contributions to non-for-profits are generally non-repayable
  • Project contribution amounts will not normally exceed $10 million

Applicant Eligibility

The ARRI program supports businesses in the aerospace industry, as well as organizations that support them, including:

  • Small and medium-sized enterprises
  • Not-for-profit organizations providing services to SMEs

Project Eligibility

Eligible projects include activities that:

  • Improve green operations and adopt environmental practices, such as:
    – Adoption and commercialization of clean tech products and services
    – Electrification to support a lower carbon footprint
  • Improve cleantech productivity in overall business processes, such as:
    – Advanced manufacturing and Industry 4.0
    – Scale-up of high-potential firms
    – Artificial intelligence and cybersecurity
    – Workforce and skills development
  • Strengthen commercialization by increasing expansion into regional and global supply chains through:
    – Integration of new start-ups and new technologies in key aspects of the value supply chain

Program Timeline

  • Applications will be accepted on a continuous basis until the funding is allocated.
  • Certain costs may be eligible on a retroactive basis up to 12 months before the receipt of the project application, but no earlier than April 19, 2021.
  • All projects must be completed prior to March 31, 2024.

Government Funding for Canada’s Aerospace Sector

The future of the global aerospace sector is a bit foggy. If successful, in less than a century’s time, aviation could become a fully zero-emissions industry with clean technology innovation allowing planes to function via solar energy and/or by utilizing carbon dioxide from the air.

This leap in advancement, of course, requires a major shift in operations and processes currently in place at airports around the world. Hence the importance of funding programs such as ARRI taking initiative in helping aerospace businesses not only recover in times of need, but supporting the transition into a more environmentally friendly world.

“We’re investing to create good, well-paying jobs for our recovery. This [ARRI] investment will also secure the industry’s long-term future in Canada, like developing green aviation projects and more clean technologies.”
– Justin Trudeau, Prime Minster of Canada

There are a variety of government funding programs available for aerospace sector businesses located in Canada. Discover support for hiring and training, capital investment, research and development, and business expansion by browsing our website or signing up for our free weekly e-newsletter for up-to-date news on everything funding-related.

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