Federal News
Canada Expands Defence SMB Support Programs
March 25, 2026
Canada has launched significant federal initiatives to bolster small and medium-sized businesses (SMBs) in the defence sector through the Defence Industry Assist (DI Assist) and Regional Defence Investment Initiative (RDII) programs. These programs collectively provide over $600 million in funding and expert guidance aimed at helping Canadian SMBs innovate, commercialize advanced defence and dual-use technologies, and integrate into both domestic and international defence supply chains. The initiatives also encourage leveraging federal and provincial funding and tax incentives to scale operations and navigate complex procurement processes.
- DI Assist allocates $244.2 million to support SMBs in technology development and market entry, offering expert advice to overcome procurement barriers.
- RDII commits $357.7 million over three years to accelerate SMB integration into defence supply chains, enhancing competitiveness and export potential.
- Procurement professionals should note the emphasis on collaboration with Regional Development Agencies and the National Research Councilβs Industrial Research Assistance Program (NRC IRAP) as key facilitators.
- Businesses and contractors in Quebec, Alberta, and Ontario regions are particularly positioned to benefit from these programs, reflecting a geographically diverse support strategy.
- Organizations should evaluate opportunities to align with these initiatives to access funding, scale capabilities, and participate in evolving defence procurement landscapes in Canada.
The program is designed to help companies overcome barriers to market entry, commercialize cutting-edge technologies, navigate a highly complex procurement process, become embedded into the defence and security supply chain, and help them scale up their operations.
— Leigh Harris, Partner, Management Consulting, Lead Partner, Federal Government, KPMG Canada
Agencies
National Research Council of Canada, National Research Council of Canadaβs Industrial Research Assistance Program, Defence Industry Assist, Regional Defence Investment Initiative, Regional Development Agencies
Contracts
$244.2 million, $357.7 million
Locations
Sources
- Defence programs open up new doors · KPMG · Mar 25