Strategic Aerospace and Defense Initiative (SADI) – Overview

The Strategic Aerospace and Defense Initiative (SADI) is a Canadian government funding program that provides repayable contributions to support research and development projects in the aerospace, space, defense, and security sectors (A&D). Firms of all sizes are eligible to apply for this program to support product/process/service innovation in the A&D industry.

The SADI Canadian government funding has three main objectives:

• To encourage strategic R&D that will result in innovation and excellence in new or improved products, services, and processes
• To enhance the competitiveness of Canadian A&D companies
• To foster collaboration between research institutes, universities, colleges, and the private sector

Strategic Aerospace and Defense Initiative (SADI): Background

SADI funding is disbursed as a loan and aims to support strategic research collaborations in the aerospace and defence industry. Applicants must be for-profit corporations incorporated in Canada, and at least 1% of the total eligible project costs must be allocated to post-secondary education institutions in Canada.

For this Canadian government funding program projects must support the development of next-generation A&D products/services/processes, build on Canadian strengths in A&D tech development, enable Canadian companies to participate in platforms and supply chains, or help Canada meet international obligations such as the Joint Strike Fighter or Defence Development Sharing Agreement.

Strategic Aerospace and Defense Initiative (SADI): Funding Amount

As this is a procurement based program, there is no set amount of funding available for projects. Up to September 2014, over $1 billion in funding had been committed for 34 projects. SADI funding has ranged from $275,000 to $300M depending on project size, potential impacts, and contributions to the Canadian A&D industry.

Companies applying for this Canadian government funding program can expect to have approximately 40% of their eligible project costs covered. This includes coverage for labour, contractors, project-related equipment, project materials, and overhead.

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