Aerospace Regional Recovery Initiative - Application guide

The intake period for the Aerospace Regional Recovery Initiative in southern Ontario is now closed. Applications received and acknowledged by FedDev Ontario prior to the intake period closing will be evaluated subject to remaining funding.

Review our funding opportunities to learn about other FedDev Ontario supports.

Table of contents


Introduction

This guide provides instructions on how to complete and submit FedDev Ontario's Application for Funding for the Aerospace Regional Recovery Initiative.

If you have additional questions, please contact FedDev Ontario by phone at 1-866-593-5505 or by visiting our Contact us page.

About

About the Aerospace Regional Recovery Initiative

The Aerospace Regional Recovery Initiative will help the Canadian aerospace sector emerge from the pandemic with the capacity to compete on the global stage. The initiative will provide $250 million over three fiscal years (2021-2022 to 2023-2024) across Canada to support the recovery of the aerospace sector.

Eligible applicants

The initiative will support businesses in the aerospace industry (see definition below), as well as the organizations that support them. This includes:

  1. small- and medium-sized enterprises (SMEs)
  2. not-for-profit organizations providing services to SME s

Indigenous businesses and organizations are invited to apply. Under the initiative, RDAs can contribute up to 100 percent of eligible project costs for projects with Indigenous recipients.

Eligible activities

The initiative will support SME s in the following objectives to:

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

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

  1. transition towards greener products and operations or environmentally sustainable practices such as:
    • adoption and commercialization of clean tech products and services
    • electrification to support a lower carbon footprint.
  2. improvement of productivity such as:
    • advanced manufacturing and Industry 4.0
    • scale-up of high-potential firms
    • artificial intelligence and cybersecurity
    • workforce and skills development
  3. 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 inclusivity and diversity to address barriers faced by certain groups
  • supporting digital adoption by the aerospace industry and enhanced cybersecurity

Financial support

  • Contributions to SME s are generally repayable or conditionally repayable
  • Contributions to not-for-profits are generally non-repayable
  • Project contribution amounts would not normally exceed $10 million

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.

Definition

The aerospace industry is defined as aerospace manufacturing and maintenance, repair and overhaul (MRO) service.

Aerospace manufacturing industry main activities

Aerospace MRO service industry main activities

  • aircraft assemblies, subassemblies and parts
  • aircraft engines and engine parts
  • aircraft fuselage, wing, tail and similar assemblies
  • tail and wing assemblies and parts (empennage)
  • flight simulators
  • developing and producing prototypes for aerospace products
  • space systems
  • telecommunication satellites and components
  • avionics
  • helicopters, propellers and parts
  • aircraft heavy maintenance, servicing and repairing
  • aircraft engines maintenance, servicing and repairing
  • aircraft components and other systems maintenance, servicing and repairing
  • aircraft line maintenance (aircraft servicing at airports – excluding sales of fuel revenues)
  • aircraft ferrying services
  • aircraft inspection services
  • aircraft testing services
  • aircraft upholstery repair

Application process

Application process

About the Application for Funding

An Application for Funding provides FedDev Ontario with a detailed description of a proposed project, what an applicant hopes to achieve by undertaking a project, and how the proposed project will align with the program eligibility criteria. Projects will be assessed based on the information provided by an applicant. It is the responsibility of the applicant to complete all required sections in the Application for Funding and Supplemental Annex as accurately and completely as possible. As the assessment proceeds, FedDev Ontario may request additional information.

Submitting an Application for Funding does not constitute an offer of funding.

Other important details

Multiple and concurrent project submissions from the same applicant are discouraged. Recipients would normally be limited to one successful project per program.

The information contained in your Application for Funding is subject to the Access to Information Act and the Privacy Act.

The names of recipients, the amount of funding approved and a brief description of the project are included in public records and disclosed on FedDev Ontario’s website in accordance with the Government of Canada’s proactive disclosure practices.

Application guide

Application guide

Applicant Information

  1. Legal name of Applicant: The name of the incorporated business or organization, as it appears on your incorporation documents. Legal name and operating name may be different.

    Operating name: The name under which business is publicly conducted. e.g., 123456 Ontario Ltd operating as XYZ Technologies.

  2. Type of Organization: Select the category that accurately reflects your organization type or legal structure.

    Important note: eligible applicants must be capable of entering into a legally binding agreement.

    Is the Applicant a subsidiary? If yes, identify the parent entity and its location: A subsidiary is a company which has a controlling interest in its shares owned by another company. Provide the legal name of the parent entity and head office location.

  3. Business Number: The business number is a unique nine-digit number assigned by the Canada Revenue Agency.
  4. Nature of your organization: Please select what industry most accurately reflects the organization, not the project activities.
  5. Provide a brief description of the applicant organization: Please provide details about your organization.
  6. Applicant address: The complete address where the headquarters of the company is located.
  7. Is the Applicant Location the global headquarters of the organization?: Indicate whether the Applicant Location (provided in line 6) is the same as the organization’s headquarters. If it differs, please provide the headquarters address.
  8. Is the Mailing Address the same as the Applicant Location?: Indicate whether the mailing address is the same as the address provided in question 6. This may be different from the organization’s headquarters.

    If the project will take place at a location other than the applicant’s address, or if there are multiple project locations, please note the location where the largest portion of the funding will be allocated under question 31.

  9. Official Language for Correspondence: Select between English or French as the preferred language for correspondence.
  10. Date of Incorporation (YYYY-MM-DD): The date stated on the company's Articles of Incorporation.
  11. If applicable, number of years the organization was in operation prior to incorporation: This is to indicate when business operations first started, if they pre-date incorporation. These are the years in which business revenue was reported in a Canada Revenue Agency tax return.
  12. Is the Applicant a public or private corporation? A public corporation has its shares traded on a public stock exchange. For not-for-profit organizations and all other businesses, indicate "private corporation."
  13. Number of full-time employees in Canada: Indicate the current total number of full-time employees (FTEs) working in Canada, including those employees who may be working remotely but whose jobs were previously considered to be based in Canada.

    Generally, FTE positions involve between 35-40 hours in a regular workweek. Do not include FTEs employed by suppliers or contracted services.

  14. Number of part-time employees in Canada: Indicate the current total number of part-time employees (PTEs) working in Canada, including those employees who may be working remotely but whose jobs were previously considered to be based in Canada.

    A PTE usually works less than 35 hours in a regular workweek. Do not include PTEs employed by suppliers or contracted services.

  15. Number of employees outside of Canada: Indicate the current total number of employees (full-time and part-time) working for the business or organization outside of Canada.
  16. Is the Applicant, its directors or officers a party to legal proceedings that may adversely affect the business? Indicate if there are any current legal actions that could, directly or indirectly, affect the company.
  17. FedDev Ontario representative: If applicable, indicate FedDev Ontario official with whom you spoke regarding your project.
  18. Will the project occur in an Official Language Minority Community? Official Language Minority Communities generally consist of Francophone minority communities in southern Ontario.

Authorized project contact

  1. Provide contact information for the person who is authorized to represent the business or organization, and who will be the main point of contact regarding the project. Note this cannot be a consultant, as FedDev Ontario will only communicate with the applicant. Ideally, the authorized organization contact is also a signing officer.

    If the contact person is not a signing officer of the business or organization, confirmation of that person's right to represent the company may be required.

Project Information

  1. Estimated Start Date of Project: This date is the first day you anticipate incurring expenses for your project, typically the date of a submitted application. Note: certain costs may be eligible retroactively to up to 12 months prior to the receipt of a project application, but no earlier than April 19, 2021.
  2. Estimated End Date of Project: This date is the last day you anticipate incurring expenses for your project.

    Note: that the project end date cannot be later than March 31, 2024.

  3. Initiative: Select the initiative for which you are applying. Applicants should select the Aerospace Regional Recovery Initiative if they are applying to the initiative.
  4. Provide a short project description (two-three sentences) summarizing the project and outlining the project's expected results: Provide a brief project title and briefly describe the main activities and the anticipated outcome(s) of the project. Further information on the activities and outcomes can be provided in question 24.

    Please note that this information may be used by FedDev Ontario for public reporting.

  5. Outline the objectives and detailed expected result(s) anticipated from the project: The objectives are the organization's reason(s) for undertaking the project and the outcomes are the anticipated results from the project.

    This section should serve as a rationale for why this project should receive funding.

  6. Provide a project description that includes main activities to be undertaken to complete the project: This section should highlight why you are undertaking this project and how you intend to achieve your expected outcomes as well as those of the program (use non-technical language).

    Please refer to the Eligible Activities section, and outline in particular, how and the degree to which your proposed project aligns with any of the activities listed.

  7. List any key project partners and their role and contribution to the project: Key project partners may include for-profit and not-for-profit organizations, post-secondary institutions, community stakeholders and other government departments (federal, provincial or municipal) invested in the completion and/or the success of the project through the provision of either financial and/or non-financial contributions. Please describe the financial and/or non-financial contributions to be made, as well as the status of each contribution (i.e., confirmed, pending confirmation, or to be requested) for each identified key project partner.

    If project partners are providing financial or in-kind contributions, please complete the following table: List any identified project partners in the table provided. Add the value of their contribution(s) in dollars.

    • Cash contribution: Cash asset transactions that are provided by interested parties in support of a federally approved transfer payment project or initiative.
    • In-kind contribution: In-kind contributions involve non-cash asset transactions (e.g., securities, equipment, use of facilities, labour, goods, etc.) that are provided by interested parties in support of a federally approved transfer payment project or initiative. Please note that in-kind contributions cannot be considered towards required matching funding for applications submitted by businesses, but may be included to strengthen the project proposal. For greater clarity on all other project proposals, applicants are encouraged to contact FedDev Ontario to inquire whether or not in-kind contributions can be considered as part of the eligible investment.
  8. Describe the need for FedDev Ontario funding and the impact on the project if funding is not received: Please illustrate why financial assistance is required for this project and explain what the impact would be if the requested funding was not received. For example, would the project still proceed without funding? Would the project scope be smaller? Would timelines for achieving outcomes be affected? This section could also explain the broader impact(s) on the business, such as the reduced potential for job creation or missed market opportunities, as well as sectoral or regional impacts if funding is not received.
  9. Business Applicants: If you are not a business applicant, please indicate "not applicable." Business applicants must complete this question.

    Indicate the impact your project will have on your business's competitive position and market share. If applicable, provide estimates of market share increases.

  10. Not-for-profit Applicants: If you are not a not-for-profit applicant, please indicate "not applicable." Not-for-profit applicants must complete this question.

    Provide context on similar or comparable projects already being undertaken regionally or in Canada and describe how your project is different or complements the efforts of other players in the ecosystem. Projects should aim to address a gap in the regional economic landscape and/or complement other existing supports to demonstrate the incremental benefit(s) of the project without duplication or overlap that could negatively impact the objectives of others operating in the ecosystem.

  11. Describe the project's key risks and mitigation strategies: Indicate the risks associated with your project, as well as the methods of risk mitigation that will be used for the project. Examples of risk may include: financial, trade, regulatory, implementation, and/or any risks that may impact a successful project outcome.
  12. Largest physical location: Provide the physical address where the largest portion of the project will occur: Street, Unit Number, etc.
  13. Are any of the activities of the proposed project expected to occur on federal lands? Federal lands are defined in the Impact Assessment Act, 2019.

    Note: Activities on federal lands could be subject to additional requirements.

Project outcomes

  1. Describe how this project aligns with FedDev Ontario's priorities:

    Instructions for Aerospace Regional Recovery Initiative Applicants:

    Provide a broad overview of your project’s anticipated impacts and indicate how it aligns with the eligible Aerospace Regional Recovery Initiative activities. Please include more detailed information in the Aerospace Regional Recovery Initiative Supplemental Questions Annex and in the Diversity and Inclusion section of the Application for Funding.

Economic benefits

This section includes a list of common measurable economic benefits of projects. It is not an exhaustive list and certain economic benefits may not apply to your project proposal. Applicants are encouraged to fill out all options that apply to their project. If the applicant selects "No" for any of the options, then it is not necessary to provide a value in the "Amount" column.

All amounts reported in this section must be measurable and verifiable, and fall within the estimated Start Date of the Project to the End Date of the project. Other measurable benefits, or benefits that fall out of this timeframe, that the applicant wishes to highlight should be included in earlier questions related to objectives and expected results.

  1. Increased domestic sales: Indicate the total value of increased sales within Canada for your organization and/or collaborators. These sales must be a direct result of the project activities and cannot include increased sales from other activities undertaken by your organization. Estimate the cumulative value of the increase in sales. Do not include sales that will be realized beyond project completion.
  2. Increased foreign sales: Indicate the total value of increased sales outside of Canada for your organization and/or collaborators. These sales must be a direct result of the project activities and cannot include increased sales from other activities undertaken by your organization. Estimate the cumulative value of the increase in sales. Do not include sales that will be realized beyond project completion.
  3. Increased clean tech sales: Clean technology refers to any process, products or services that reduce environmental impacts (may include remediating or preventing any type of environmental damage). Indicate the total value of clean technology sales as a direct result of your project. These sales can either be in Canada or outside of Canada. 
  4. Foreign investment in Canada: Indicate if the project will result in new foreign direct investment in Canada. This investment must be a direct result of the project activities and cannot include investments that would have occurred if the project did not proceed. Estimate the cumulative value of the investment. Do not include investments that will be made beyond project completion.
  5. Number of businesses supported: Indicate the number of businesses forecasted to be supported as a direct result of this project. To be deemed a supported business, the business must receive a direct benefit from the project (e.g., direct funding from FedDev Ontario or funding or services provided directly from the applicant to an ultimate recipient). If the applicant is the only business or organization supported, then indicate "1" for the number of businesses/organizations supported.
  6. Number of collaborations/partnerships established: Indicate the forecasted number of formal collaborations or partnerships that will be established during the project. A formal collaboration must include a signed agreement outlining each party's role and contribution toward the project. A collaboration or partnership must be specific to the project activities and contribute to the overall objectives of the project.
  7. Number of collaborations/partnerships established with a higher education institution: Indicate the forecasted number of formal collaborations or partnerships with higher education institutions that will be established during the project. A formal collaboration must include a signed agreement between project partners outlining each party's role and contribution toward the project. A collaboration or partnership must be specific to the project activities and contribute to the overall objectives of the project.
  8. New intellectual property (IP) created or licensed: Indicate the number of new intellectual property expected to be created or licensed as a direct result of this project. This can include IP created or licensed by either the applicant or a project partner.
  9. Number of new products or services commercialized: Indicate the number of new products or services that will be commercialized as a direct result of this project. This can include products or services commercialized by either the applicant or a project partner.
  10. Funding leveraged: Funding leveraged is calculated by subtracting the FedDev Ontario contribution from the total project cost. This can include funding provided by the applicant, project partners or other funding organizations. This can also include eligible but not supported and ineligible costs as long as they are clearly indicated as being in scope of the proposed project.
  1. Total number of jobs created and maintained at the End Date of your project and two (2) years post-project completion: Indicate in the respective fields how many full-time equivalent (FTE) jobs are expected to be created and maintained as a direct result of your project both in the near-term (i.e., immediately following project completion) as well as two years after the project is completed.

    • A job created refers to a job that did not exist within the applicant’s organization prior to the project but was created as a direct result of the project activities. This applies to the period immediately following project completion as well as two years post project completion.
    • A job maintained refers to a job that existed within the applicant organization prior to the project, but would not continue, or would likely be lost if the project is not funded. This applies to the period immediately following project completion as well as two years post project completion.

    For reference, please review question 13 of this Guide for more details on how to calculate FTEs.

Diversity and Inclusion

Gender and diversity data collected may be used for research, statistics, program and policy evaluation, risk management, strategy development, reporting, and gender-based analysis (including GBA+). This information can help the Government of Canada monitor progress on inclusive access to federal support programs and services, to identify and remove barriers, and to make changes to improve inclusive access. Aggregate and anonymous data may be shared with other federal organizations, and/or published for reporting and monitoring purposes.

The Government of Canada is committed to diversity and inclusion so that all Canadians have the opportunity to participate in and contribute to the growth of the economy.

This section of the Application for Funding is twofold:

  • The first column of the table is a voluntary self-declaration of the applicant’s status in relation to one or more underrepresented groups for statistical purposes only
  • The second column seeks to understand whether the project will benefit or encourage the inclusion of one or more self-represented groups listed in this section, as priority may be given to applications that demonstrate support and/or promote diversity and inclusion.

Note: This section of the form is a self-declaration and is voluntary. If the applicant does not wish to self-declare its status or the status of the project in relation to the underrepresented groups below, leave either or both fields blank, as applicable.

  1. Is your organization led or majority-led by one or more of the following groups or will your organization support any of the following federal inclusive growth priorities?

    • Women
    • Indigenous peoples
    • Members of Official Language Minority Communities
    • Youth
    • Persons with Disabilities
    • Newcomers to Canada and Immigrants
    • Black Communities
    • Racialized Communities
    • 2SLGBTQI+
    • Other, please explain

    “Led or majority-led” includes organizations where members of underrepresented groups are involved in long-term control and management of the business or organization and play an active role in both strategic and day-to-day decision making.

    If you identified that your organization will support any of the federal inclusive growth priorities identified above, please explain how in the space provided.

Project Budget

By completing this section, you will be providing FedDev Ontario with the key project financing information it needs to assess whether the resources requested are appropriate for further review. It is in this section where you will identify the total cost of the project as well as the amount of assistance you are requesting from FedDev Ontario.

    1. Total Project Costs by Fiscal Year: Indicate your estimated project costs in CAD over the span of up to three fiscal years (2021-2022 to 2023-2024). The fiscal year for the Government of Canada is defined as April 1 – March 31 of any given year.

    2. Total Project Costs by Category: FedDev Ontario will only fund eligible costs, which include:

      1. Labour: incremental salaries and benefits for individuals employed for the project may be eligible should they meet the following conditions:
        1. The recipient confirms that it is not economically feasible to tender a contract
        2. Costs are for those employed directly in respect of the work that would have been the subject of the contract, or
        3. Labour hired to work exclusively on the project (i.e., not existing employees of the recipient)
      2. Expertise: incremental fees paid to professional, technical personnel, consultants, engineers or contractors.
      3. Facility construction/renovation: these are costs typically associated with renovations, site improvements, leasehold improvements and related costs to support the outcomes of the project.
      4. Equipment purchase/installation: the purchase and/or installation of equipment, machinery or software directly related to, or necessary for, the completion of the project.
      5. Other direct project costs (indicate as required in the spaces provided)

      Note: All costs are approved in advance and are included in the Contribution Agreement. FedDev Ontario reserves the right to make the final determination on the value of contributions and to exclude expenditures deemed to be ineligible or outside the scope of the project.

    3. Funding Sources: If you are seeking or have secured any private funding or other government funding towards the project, please indicate the source, the funding amounts and the status of confirmation in the table. The amount being requested from FedDev Ontario should appear on the list with the status as “Requested but not confirmed.”

    Total Project Costs must be equal in the three tables (A. Total Project Costs by Fiscal Year, B. Total Project Costs by Cost Category and C. Funding Sources).

Corporate information

  1. Please keep your responses brief. For management biographies, please limit 2-3 lines per person and highlight the expertise required to manage and/or complete the project. For large companies, not-for-profit organizations or communities where a description of the management team and/or technical team is more appropriate, please provide information for the key team leaders. For board of directors, please list each member's name, job title and organization. Biographies may include prior experience, education, professional designations, and any other information you consider relevant.

Financial information

This section will allow FedDev Ontario to assess your organization's capacity to undertake the proposed project.

  1. Has your organization received any federal or provincial funding?: If you are seeking, or have secured, any other government funding within the last five (5) years, please indicate the source, the program name, the funding amount, funding purpose and the information of a key contact from the listed funding source.
  2. Describe your business or organization's current financial performance (i.e., cost structure, revenue streams): Provide a description of your organization's main revenue sources. Please explain how your organization generates revenue and any notable financial pressures.
  3. Describe how your business or organization will be sustained beyond the project completion: Provide an explanation for how your organization will be financially sustained beyond the project completion. FedDev Ontario funding is normally not intended to be used for ongoing operational costs.
  4. Provide Historical Financial Statements using the “Add Attachments” button in the form. New businesses that do not have 2 years of financial history can provide all available financial statements (interim/annual, balance sheets, or other financial documentation).

Certification

  • Certification is the act of signing a formal document to confirm that you are bound by its contents.
  • Making a false statement or providing misleading information may result in the Minister exercising any remedy available to him/her at law.
  • You must review each statement and sign the Certification.
  • Checking ‘I Agree’ provides an authorized signature of your business or organization certifying the information provided on the application.

Completing the Supplemental Annex

Completing the Supplemental Annex

Aerospace Regional Recovery Initiative – Supplemental Annex Questionnaire

In the Supplemental Annex, please respond “Yes” or “No” to all applicable fields and provide additional details as required to demonstrate how your project aligns with the objectives and priority areas of the Aerospace Regional Recovery Initiative.

  1. Greening of operations or products, or the adoption of environmentally sustainable practices: Please indicate and provide details on the environmental benefits or impacts of your project. If yes, describe how, and where applicable, provide estimates, values or other metrics to quantify the impact (e.g., percentage of energy saved, amount of greenhouse gas emissions reduced, etc.).

    Examples of greening initiatives/sustainable practices relevant to the aerospace industry could include, but are not limited to:

    • adoption and commercialization of clean technologies, products and services
    • lightweighting/advanced materials
    • reduction/greening of consumables (de-icing, lubricant, adhesives, etc.)
    • electric/hybrid-electric/hydrogen propulsion
    • bio jet fuel
    • reduction/greening of consumables (de-icing, lubricant, adhesives, etc.)
    • electric/hybrid-electric/hydrogen propulsion
    • supply chain localization
    • advanced synthetic/simulator/virtual training options

    These projects are energy efficient (e.g., encouraging new build to net-zero standards), lower carbon (e.g., electrification), more resilient (e.g., more resistance to extreme climate events like floods), and higher performing (i.e., better results with the same or fewer resources resulting in less inputs and/or waste).

  2. Adoption of digital solutions: Please indicate if your project activities include the adoption of advanced manufacturing and Industry 4.0 practices, artificial intelligence, and cyber security technologies. If yes, describe the digital solution(s) that you will adopt and outline how your project will leverage these (e.g., to enhance productivity, strengthen commercialization, protect against cyber threats, etc.).
  3. COVID-19 impact and recovery: Indicate how your organization/community was impacted by the COVID-19 pandemic and describe how this project will contribute to your recovery and position your organization/aerospace sector for future growth.