Aerospace Regional Recovery Initiative in Western Canada

The Aerospace Regional Recovery Initiative (ARRI) will help the Canadian aerospace sector emerge from the pandemic with the capacity to compete on the global stage. The Initiative will support small and medium-sized enterprises (SMEs) in the following three objectives:

1. to green their operations and adopt environmentally sustainable practices
2. to improve productivity
3. to strengthen commercialization while furthering integration into regional and global supply chains

With a total budget of $250 million over three years (until March 31, 2024), this initiative is being delivered by Canada’s regional development agencies (RDAs). It complements support for the aerospace industry provided through Canada’s COVID-19 Economic Response Plan and by Industry, Science and Economic Development (ISED) through the Strategic Innovation Fund.

Eligible applicants

Businesses operating in the aerospace industry, as well as the organizations that support them, are eligible to apply. This includes:

• small and medium sized enterprises (SMEs)
• not-for-profit organizations providing services to SMEs

Indigenous applicants

Indigenous businesses and organizations are invited to apply through the process described below. Under the initiative, RDAs can contribute up to 100% of eligible project costs for projects with Indigenous clients.

Eligible activities

The following are examples of activities for each objective that will be supported by the initiative:

1. The transition towards greener products and operations or environmentally sustainable practices, such as adoption and commercialization of clean tech products and services or electrification to support a lower carbon footprint.
2. The improvement of productivity, such as advanced manufacturing and Industry 4.0, scale-up of high potential firms, artificial intelligence and cybersecurity or workforce and skills development.
3. The commercialization and integration into supply chains such as integration of new start-ups and new technologies in key aspects of the value chain.

Priority will be given to projects that contribute to at least one of the following:

• The transition towards greener products and operations or environmentally sustainable practices.
• Generating important economic benefits and promoting business development in regions, while improving resilience and international competitiveness of the aerospace sector.
• Improving diversity and inclusion to address barriers faced by certain groups.
• Supporting digital adoption by the aerospace industry and enhanced cybersecurity.

Financial support

• contributions to SMEs are generally repayable or conditionally repayable
• contributions to not-for-profits are generally non-repayable

Certain costs may be eligible on a retroactive basis up to 12 months before the receipt of a project application, but no earlier than April 19, 2021.

Submitting an application

Canada’s regional development agencies are now accepting applications on an ongoing basis until funding is fully committed. For more information on this initiative, please contact us at 1-888-338-9378.