Who qualifies for RAII funding
Eligibility is set by each regional development agency, and the details differ. This page gives you the shape of it, with Southern Ontario's published rules as the worked example, so you can tell quickly whether a project is worth preparing.
Two applicant types
Businesses
Incorporated Canadian businesses, generally small and medium-sized, that want to adopt AI into their operations or that build AI products and want to commercialize and scale them. Business applicants usually receive repayable contributions and must show they can repay.
Organizations
Not-for-profits, incubators, accelerators, industry associations and similar bodies that help businesses adopt or commercialize AI. Organization applicants use a separate application guide and usually receive non-repayable contributions.
What Southern Ontario asks of business applicants
FedDev Ontario's application guide for businesses sets out these conditions. Other agencies have similar but not identical rules.
- Incorporated. You apply under the legal name on your articles of incorporation and attach the incorporation documents and ownership details.
- Technology readiness level 6 or higher. The AI you are adopting or commercializing must already be demonstrated in a relevant environment. Earlier-stage research is not eligible.
- At least one full-time equivalent employee in an essential role. A paid owner counts. Contractors and freelancers do not.
- A signing officer as the contact. A consultant cannot be the authorized project or financial contact.
- Matching funding confirmed within 30 days of approval. In-kind contributions and forecast revenue do not count as project financing.
- Indigenous applicants may provide a band number instead of a CRA business number.
Project timing
- The application must arrive inside the intake window.
- The project cannot start before the intake closes, and costs incurred before the intake deadline are not eligible.
- Projects typically run one to two years and must finish by the end date on the application.
- Budgets are in Canadian dollars on the federal fiscal year (April 1 to March 31).
Eligible costs
- Capital
- Machinery and equipment including directly related software; facilities work tied to specialized equipment, data or hardware
- Labour
- Incremental salaries and benefits for the project
- Expertise
- Professional, legal, technical and contracted services
- Marketing
- Marketing and outreach for the AI product or service
- Training
- Training and talent development
- Materials
- Materials for prototypes, testing and software
- Also supported
- Project management, IP management and protection, cybersecurity and other responsible-AI measures
Costs that are not eligible
- Ongoing production or operating costs
- Regular capital spending or asset replacement
- Land, buildings and vehicles
- Consultant fees for preparing the application itself
- Hospitality and entertainment
- Raw materials and inventory used in normal operations
A useful test: is the project a defined, time-boxed change to how you work or what you sell, with costs that would not exist otherwise? RAII funds that. It does not fund keeping the lights on.
What the application involves
- Read your agency's application guide for your applicant type.
- Complete the application for funding and the RAII supplemental form.
- Attach incorporation records, team bios, an IP strategy if you have one, investor or accelerator documentation if relevant, and a job list.
- Optionally attach a detailed project plan, budget breakdown and cybersecurity strategy. These help.
- Build the budget by fiscal year and cost category.
- Have a signing officer certify and submit before the intake closes.
Applicants and anyone representing them must comply with the Lobbying Act.
Open your agency's eligibility page to confirm the specifics for your region, or get updates when rules change.