Who is eligible?

• Eligibility Requirements
• What are Eligible Costs?
• What are Non-Eligible Costs?
• Additional Information

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Eligibility Requirements

To be eligible for support from SADI, applicants and projects must meet six requirements, as follows:

1. The applicant must be a Canadian incorporated company that conducts research and development in the aerospace and defence industries, and creates opportunities for Canadians to contribute to a highly skilled and knowledge-based workforce.
2. The project must comprise either industrial research or pre-competitive development, as follows:
   1. Industrial research means planned research or critical investigation aimed at discovery of new knowledge, with the objective that such knowledge may be useful in developing new products, processes or services, or in bringing about a significant improvement to existing products, processes or services.
   2. Pre-competitive development means the translation of industrial research findings into a plan, blueprint or design for new, modified or improved products, processes or services whether intended for sale or use, including the creation of a first prototype. It may further include the conceptual formulation and design of products, processes or services and of initial demonstration or pilot projects.

      Pre-competitive development does not include:

      1. initial demonstration or pilot projects if these are used for industrial application or commercial exploitation; or
      2. routine or periodic alterations to existing products, production lines, manufacturing processes, services, and other on-going operations even though these alterations may represent improvements.
3. The project must include strategic research and development activities involving one or more technologies that do the following:
   1. support the development of next-generation aerospace and defence-related products and services;
   2. build on Canadian strengths in aerospace and defence technology development;
   3. enable Canadian companies to participate in major platforms and supply chains; and
   4. help Canada meet its international obligations.
4. The applicant must demonstrate that SADI support is essential to the location, scope and/or timing of the project.
5. The project must comprise research and development that takes place in Canada.
6. The project must involve collaboration with academia in Canada.

What are Eligible Costs?

• These are costs incurred by the recipient that are required to carry out the project.
• Costs may include labour, material, overhead, specialized equipment and other costs related to the project.
• SADI's repayable contributions may also cover eligible project costs incurred prior to the signing of contribution agreements with recipients. In such cases, these costs will not have been incurred prior to the date when the Industrial Technologies Office (ITO) received the project proposal, and they will not exceed a specific percentage of total project costs.
• SADI shall not reimburse eligible costs incurred by the recipient should the proposal be rejected.
• Through SADI, Industry Canada also supports projects under the Joint Strike Fighter (JSF) program and the Defence Development Sharing Agreement (DDSA). Applicants are to refer to the procedures set out in the Proposal Development Guide to apply for funding under JSF or DDSA programs.

What are Non-Eligible Costs?

SADI does not support costs such as those associated with land and buildings.

Additional Information

Companies that wish to obtain more detailed information about how to apply for repayable contributions through SADI should consult the Proposal Development Guide.