Government programs

Regional development agencies: how Canada's seven regional development agencies support businesses.

How Canada's seven regional development agencies support businesses

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What are Canada's regional development agencies?

Short answer: Canada has seven federal regional development agencies: ACOA (Atlantic), CED (Quebec), FedDev Ontario (southern Ontario), FedNor (northern Ontario), PrairiesCan, PacifiCan (British Columbia) and CanNor (the territories). They support growth, productivity, export and innovation projects, often through repayable contributions paid on claims.

Key facts

Seven agencies cover every region
Business support is often repayable
Claims are paid after costs are incurred
Community Futures offers smaller local loans

What it is

Canada has seven federal regional development agencies, each serving a region: ACOA in Atlantic Canada, CED in Quebec, FedDev Ontario in southern Ontario, FedNor in northern Ontario, PrairiesCan in the Prairie provinces, PacifiCan in British Columbia and CanNor in the territories.

They support projects that grow regional economies, often through repayable contributions for businesses. Community Futures organizations, supported by the agencies, offer smaller local loans and advice.

Each agency publishes its own programs and priorities, which change over time. Some focus on scale-up and productivity, others on exports, tourism, clean technology, Indigenous economic development or communities facing a downturn. The individual agency guides linked below describe the regional context for each one.

Who it is for

Businesses with growth, productivity, export or innovation projects.
Companies able to fund their share of a project.
Communities and not-for-profits, for some programs.

How it works in practice

Identify the agency for your region.
Discuss the project with an officer.
Apply during the relevant intake.
Claim eligible costs after spending.

Cash-flow timing to plan for

Most agency funding reimburses costs, so a business carries the full cost until claims are paid. Plan the peak cash need carefully.

Repayable contributions add a future repayment schedule to plan for.

Tips before you apply

Start with a conversation, not an application.
Bring quotes and a clear project budget.
Check stacking rules with other programs.
Keep detailed records for claims.

Questions to ask before you commit

Which agency serves my region?
Is my project a fit for current programs?
Is support repayable or non-repayable?
How are claims paid?
Can support be combined with other programs?

Common mistakes with program funding

Starting eligible spending before an agreement is signed, which can make those costs ineligible.
Assuming a payment date that the program never promised.
Losing receipts and timesheets needed for claims.
Forgetting that repayable contributions must be repaid on a schedule.
Using program support and private financing without checking stacking rules.

Using programs and private funding together

Government programs are usually the lowest-cost money available to a Canadian business, and they are worth pursuing first when you qualify. They are also slower, have intake windows and often pay after you spend. Many owners use a short, revenue-based advance only to cover a timing gap, such as paying a share of a project before a contribution arrives, and repay it when the program pays out. Size any advance to the gap, not to the whole project, and confirm that the program's terms allow other financing.

Source and date

Official program information: www.canada.ca. Program details change; check current eligibility, intake dates and terms with the program directly. Summary as of October 2026. Merchant Fund Express is not affiliated with this program and does not administer it.

Common questions

Which agency serves me?

It depends on your province or territory; see the agency pages linked from this guide.

Are these grants?

Business support is often repayable. Check each program.

Do they replace bank financing?

No. They usually complement it.