Waterloo Region & Guelph

LoanFederal program

Regional Artificial Intelligence Initiative (RAII) for Businesses

RAII lends interest-free, repayable funding to southern Ontario businesses that are adopting AI or bringing their own AI products to market. You pay it back, normally starting a year after the project ends. There are two streams, with different size and age rules.

Amount
$125,000 to $5 million per project, up to 50% of eligible costs
Status
Open, closes Jan 19, 2027First cut-off Nov 24, 2026: 10 days leftFinal deadline Jan 19, 2027: 66 days leftFinal deadline January 19, 2027, 4:59 p.m. Eastern. Apply by November 24, 2026 if your project and eligible costs start before March 31, 2027.
Type
Repayable, interest-free contribution (up to 50%)
Run by
Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
Where
All of Ontario
Checked on
Nov 13, 2026

Who it's for

  • For-profit businesses, including First Nations, Métis or Inuit businesses, located and operating in southern Ontario
  • Incorporated and registered in Canada or Ontario
  • AI Adoption stream: at least 3 years in business and 5 to under 500 full-time equivalent employees
  • AI Commercialization and Scale-Up stream: at least 1 year in business, at least 1 full-time equivalent employee in southern Ontario, under 500 overall
  • You must own or have rights to the project's intellectual property and show a commitment to responsible AI

Not for

  • Simply buying commonly available AI tools (Adoption projects must go beyond that)
  • Buying land or buildings, or refinancing debt
  • The cost of preparing the application
  • Projects that started more than 12 months before you apply

What it covers

  • Adoption: buying and installing AI or AI-driven solutions, AI readiness assessments, integrating AI and strengthening cybersecurity
  • Commercialization: bringing AI solutions to market (technology readiness level 6 and up), testing and validation, regulatory compliance and protecting intellectual property

How to apply

  1. Read the Application Guide for Businesses in full.
  2. Download and complete the Application for Funding (For-Profit Applicants) and the RAII Supplemental Form. The supplemental form is required even if every answer is no.
  3. Submit both with the required attachments before the deadline.
  4. Keep a copy of the confirmation message you get after submitting.

Good to know

  • This is repaid, interest-free. Repayment normally starts 1 year after the project ends.
  • Projects must be finished by March 31, 2031.
  • Costs spent before a decision are at your own risk.
  • Adoption priority may go to healthcare and life sciences, energy and natural resources, transportation, agriculture, and manufacturing and robotics.
  • The amount depends on available funding, and FedDev Ontario makes the final decision on it.
  • FedDev Ontario's service area lists 37 census divisions, including Waterloo and Wellington.

Questions

Can I use it to pay for off-the-shelf AI tools?

The official page says Adoption projects must go beyond buying commonly available AI tools. It's for buying and installing AI or AI-driven solutions as part of a larger project.

Which deadline applies to me?

If your project and eligible costs start before March 31, 2027, apply by November 24, 2026. Otherwise the final deadline is January 19, 2027 at 4:59 p.m. Eastern.

Is this a grant?

No. FedDev Ontario says the funding is fully repayable and interest-free, with repayment normally starting 1 year after the project is complete.

Related programs

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Indigenous Economic Development Fund

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Southwestern Ontario Development Fund (SWODF)

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OCI Digital Competence Centre grants

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