Canada is taking its aerospace industry to the moon

  • By Pauline Pacosi
    • 02 Nov, 2022
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In July 2021, Canada’s Regional Development Agencies launched a national fund to support the Canadian aerospace industry, in this article, we introduce you to the main criteria and benefits of this new program.  

The Aerospace Regional Recovery Initiative (ARRI) was created after the pandemic in order to boost the Canadian aerospace sector and help Canadian companies compete on the global stage. The initiative will provide $250 million over three fiscal years from 2021-2022 to 2023-2024.

Canada’s regional development agencies (RDAs) can contribute up to $10 million per project. The contributions will be zero-interest repayable or conditionally repayable for SMEs and it even can be non repayable for not-for-profit or Indigenous organizations.

Who is eligible?

  • You are a small or medium company or a not-for-profit organization providing services to SMEs.
  • You operate in the aerospace industry, being defined as aerospace manufacturing and aerospace maintenance, repair, and overhaul (MRO) service.

Here are some example of eligible activities: Aircraft assemblies, and parts; flight simulators ; prototypes for aerospace products ; space systems ; telecommunication satellites and components ; avionics ; helicopters, propellers and parts ; aircraft maintenance and components ; aircraft inspection, testing and maintenance services…

  • Your project falls under one of the three following objectives:
  • You want to green your operations and embrace environmentally sustainable practices by adopting and commercializing clean tech products and services or with the electrification of your production to support a lower carbon footprint
  • You are looking for productivity improvement with advanced manufacturing equipment, industry 4.0 solutions, scale-up of high-potential firms, artificial intelligence and cybersecurity systems, or workforce and skills development.
  • You want to strengthen commercialization while furthering integration into regional and global supply chains by integrating new start-ups and new technologies in key aspects of the value chain.

If you fulfill these three criteria, you can benefit from ARRI and obtain government funding to develop your growth project.

How to improve the odds for your project?

The ARRI prioritizes projects that contribute to at least one of the following:

  • Transitioning towards greener products and operations or environmentally sustainable practices;
  • Generating important economic benefits and promoting business development in regions;
  • Improving inclusivity and diversity;
  • Supporting digital adoption and enhanced cybersecurity.
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What can you expense within the framework of the funding?

You can include different expenses in your project, which are divided into 4 main themes:

  • Labour expenses such as salaries and benefits for individuals employed for the project;
  • Expertise fees from professional, technical personnel, consultants, engineers or contractors;
  • Facility renovation or construction, site improvements, leasehold improvements and related costs to support the outcomes of the project;
  • Equipment purchase and installation including machinery or software directly related to, or necessary for, the completion of the project.

Furthermore, you can also ask for any other direct project costs.

What are the technical and practical aspects of the program?

Once your eligibility is confirmed, you need to gather all relevant information and to structure your project before presenting it to your Canada’s Regional Development Agency. You can ask between $500,000 and up to $10 million.

We can help you completing the application for funding and the supplemental annex with the appropriate documents attached. Then, you can submit the application to the agency, the funding will be granted as an interest-free loan or a non-repayable funding for SMEs under particular conditions.

Finally, you will need to prepare the follow-up documentation, indeed you must provide the agency with the relative invoices and certificates and certain expenses can even be reimbursed retroactively from April 2021.

Leyton has a team of grant experts to assist you in your project, from the structuring of your budget to the preparation of receipts, and through the procedures with the agency, we offer our help for your funding procedure to enable you to concentrate on your company’s future.

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