Open, continuous intake Partly repayable

Regional Artificial Intelligence Initiative (RAII) for Northern Ontario

by Federal Economic Development Agency for Northern Ontario

Also known as: RAII · Regional AI Initiative

FedNor's Regional Artificial Intelligence Initiative funds Northern Ontario projects that adopt or commercialize AI: implementation, automation, analytics, data and cybersecurity work. For-profit SMEs can get up to 50% of eligible costs, normally repayable; not-for-profits up to 90%, normally non-repayable. Retail and service-based businesses are excluded. Applications are assessed as received through FedNor's portal.

Amount: Up to 50% of costs For-profit: up to 50% of eligible costs, normally repayable. Not-for-profit: up to 90%, normally non-repayable. No program-wide maximum is published; the contribution is the minimum needed to carry out the project.
fednor.canada.ca · Last verified Oct 29, 2026 · Auto-checked against official source
Eligible for reimbursement up to 50% of eligible costs; and
Instrument: Mixed instruments
Status: Open, continuous intake no fixed deadline; approvals on the funder's cycle
Who qualifies: Businesses Nonprofits and charities Indigenous organizations and communities Municipalities and local boards
incorporated-sme
nonprofit
indigenous-org
municipality
Retail and service-based businesses will not be considered
Project benefits must accrue to Northern Ontario
A sustainable business model normally supported by two years of operations
Commercialization projects must be at Technology Readiness Level 7 or higher
Three streams: AI Adoption, AI Commercialization, AI Ecosystem
fednor.canada.ca · Last verified Oct 29, 2026 · Auto-checked against official source
Note: Retail and service-based businesses will not be considered under this program.
Where: Algoma District · Cochrane District · Greater Sudbury (single-tier census division) · Kenora District · Manitoulin District · District Municipality of Muskoka · Nipissing District · Parry Sound District · Rainy River District · Sudbury District (excl. Greater Sudbury) · Thunder Bay District · Timiskaming District
11 of 11 Northern Ontario districts are eligible for this program. A filled dot is eligible, an outline is not.
Built for: Small business, expansion Startups & new entrepreneurs Nonprofits & charities Municipalities & Local Services Boards Indigenous entrepreneurs & businesses

Do you have to pay this back?

Contributions to for-profit organizations are normally repayable, up to 50% of eligible costs; contributions to not-for-profit organizations are normally non-repayable, up to 90%.

fednor.canada.ca · Last verified Oct 29, 2026 · Auto-checked against official source

How conditional contributions and repayable splits work

How do you apply?

Call first. This funder expects contact with a program officer before you apply.

Call FedNor (1-877-333-6673) to discuss the proposal
Initial application through the FedNor self-service portal
Detailed application
Assessment as received; approval depends on funding availability

fednor.canada.ca · Last verified Oct 29, 2026 · Auto-checked against official source

All applications will be assessed as they are received.

Common questions

Is RAII funding a grant?

Not for businesses. FedNor says contributions to for-profit organizations are normally repayable, at up to 50% of eligible costs. Not-for-profits normally receive non-repayable funding of up to 90%.

Can a service business apply?

FedNor's page says retail and service-based businesses will not be considered. Talk to a FedNor officer before applying if your business is service-based.

What can the money pay for?

Capital and operating costs directly tied to an AI project, including equipment, software, data platforms, cybersecurity, project labour, professional services and training. Routine software subscriptions and general-purpose computers are not eligible.

Where else could this money come from?

Chosen by what these programs have in common with this one, not by hand. The reason is shown for each, so you can judge whether it holds.

Community Futures Program (Northern Ontario) Open, continuous intake
same funder (FedNor); both for small business, expansion and startups & new entrepreneurs; fednor · Varies; see program
Economic Development Initiative (EDI) in Northern Ontario Open, continuous intake
same funder (FedNor); both for nonprofits & charities and municipalities & local services boards; fednor · Up to 90% of costs
Community Investment Initiative for Northern Ontario (CIINO) Open, continuous intake
same funder (FedNor); both for nonprofits & charities and municipalities & local services boards; fednor · Up to $100,000
FedNor, NODP Youth Internships Open, continuous intake
same funder (FedNor); both for small business, expansion and nonprofits & charities · Up to $52,500

Notes on this record

Expanded under Canada's AI strategy; FedNor states total federal RAII funding is $700 million nationally. NORCAT Innovation separately runs a FedNor-funded RAII micro-grant (50% to $20,000) limited to Greater Sudbury clients, closing February 1, 2027.

Apply

Apply on the funder’s site and confirm current terms there:

fednor.canada.ca