On March 7, 2025, the Government of Canada announced a suite of tariff support initiatives to help Canadian businesses weather the impact of potential tariffs imposed by the United States. The measures total over CA$6.5 billion in aid and include financial assistance programs, low-interest business loans, export market support and job-protection measures.
This article offers a comprehensive overview of these programs and outlines the application process for businesses seeking to participate.
Farm Credit Canada financing for agriculture and food sector
What it is: To support the agriculture and agri-food industry in Canada, Farm Credit Canada (FCC) has been allocated CA$1 billion in new lending capacity. Through FCC's "Trade Disruption" support program, eligible farmers, producers and food processors can obtain additional credit and flexibility. This includes access to a new credit line up to CA$500,000 and new term loans to help cover operating expenses. Importantly, FCC's existing customers can also request to defer principal payments for up to 12 months on their current loans.
How to apply: Agriculture and food businesses can contact FCC to inquire about options under this program. Eligible businesses under this program must (1) meet the necessary lending criteria; and (2) must be financially viable businesses prior to the impact of the tariff. FCC will not provide the funds in the form of grants or other interest-free loans. Interested businesses should reach out to your FCC relationship manager to discuss your situation and options. For more details, please visit the FCC Trade Disruption Customer Support program website.
Extended Advance Payments Program (APP) for farmers
What it is: The federal government is also maintaining the CA$250,000 interest-free loan limit for the Advance Payments Program (APP) for the 2025-2026 program year. Farmers can borrow up to CA$250,000 interest-free, as part of a total advance of up to CA$1 million, to help with expenses while waiting to sell their crops or livestock. This eases cashflow concerns for farmers, by allowing up to 18 months to fully repay the advance for most commodities and up to 24 months for cattle and bison.
How to apply: Farmers and agricultural producers can access the APP through participating producer organizations and financial institutions (the APP is administered by industry groups on behalf of Agriculture and Agri-Food Canada). If you have used APP in the past, you should be contacted by your program administrator about the 2025 program terms. New participants can apply by contacting the appropriate administrator for their commodity. The application will involve reporting your expected production or inventory as collateral for the advance. For more details, please visit the APP website .
Trade Impact Program (via Export Development Canada)
What it is: The Trade Impact Program is a new Export Development Canada (EDC) initiative aimed at deploying CA$5 billion in support over two years. The goal of the program is to help Canadian exporters and their suppliers cope with lost US sales and reach new global markets. EDC is offering enhanced services such as: credit insurance to protect against foreign buyer non-payment, solutions to mitigate currency fluctuations and increased working-capital guarantees for exporters.
How to apply: Eligible businesses under this program include:
- Direct exporters include businesses that earn revenue from customers outside of Canada for their goods and/or services.
- Indirect exporters include businesses that do not export directly themselves, but support the supply chain of Canadian exporters.
- Future exporters include businesses that have a defined export plan and are looking to take on their first contract outside of Canada.
Eligible businesses can access the Trade Impact Program by contacting EDC. If you're new to EDC, you can start with their online assessment or reach out via their helpline. Existing EDC clients should consult with their account manager to inquire about the details of this program. Please visit the EDC Trade Impact Program website for more details.
Pivot to Grow loan for affected businesses (via Business Development Bank of Canada)
What it is: The Business Development Bank of Canada (BDC) is offering CA$500 million in additional financing to small and medium-sized businesses (SMEs) directly impacted by the tariffs in a program called Pivot to Grow. These funds come in the form of working capital loans with favourable terms. Loans will range from about CA$100,000 up to CA$2 million over six-year terms. Notably, BDC is providing these loans at preferential interest rates and with flexible repayment options such as the possibility to postpone principal payments for up to 12 months. The program targets businesses in sectors hit by US tariffs (and their supply chains), ensuring they have access to liquidity to continue operations and adapt.
How to apply: Businesses looking to apply under this program must meet the following minimum requirements:
- Must export minimum 25% of sales to the US;
- The annual sales must be CA$2 million or more;
- The business must have positive cashflow; and
- The business must demonstrate profitability.
Businesses should expect to provide financial statements and explain how tariffs have created cash flow challenges or investment needs for your company. To apply, eligible businesses should submit a loan request online or reach out to their BDC account manager. A BDC representative will evaluate your application and guide you through the loan process. For more details, please visit the BDC Pivot to Grow website.
Legal considerations for businesses applying to these programs
In light of the tariff support initiatives, business owners should be mindful of the legal and compliance considerations when applying for and using these supports. Some key points to consider include:
- Eligibility criteria and documentation: Each program has specific eligibility requirements, so confirm that your business is eligible before applying and be prepared to provide documentation to prove your eligibility – financial statements, incorporation details, proof of impact (such as cancelled US orders or increased costs), etc.
- Loan agreements and obligations: If you receive financing from BDC or FCC, remember that these are loans, not grants. You will sign loan agreements that impose obligations on your company. Review the terms carefully – interest rates, repayment schedules, covenants and any security agreements (collateral).
- Impact on other legal obligations: Receiving support might intersect with other legal commitments your business has. For example, if you have existing bank loans, check whether taking on additional debt from BDC/FCC requires notifying your bank or getting consent (to avoid breaching any debt covenants).
- Foreign investment and ownership considerations: One less obvious aspect of the tariff turmoil is that some Canadian companies might become targets for foreign takeovers (e.g. a US or international buyer might see an opportunity to acquire a weakened Canadian firm). The federal government has updated the Investment Canada Act Guidelines to guard against harmful foreign takeovers during this economically vulnerable time. If your company is considering bringing in a foreign investor or selling to an overseas buyer while utilizing these support programs, be aware that such a transaction may face additional government review.
- Seek professional advice when needed: Navigating government programs and legal requirements can be complex. Don't hesitate to consult with a legal professional or advisor when in doubt. A lawyer familiar with government funding and trade law can help interpret the criteria, prepare a strong and review any contracts or agreements you must sign. They can also advise on strategies to remain compliant and avoid common pitfalls. By staying organized and legally compliant, you keep all options open.
About Dentons
Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Specific Questions relating to this article should be addressed directly to the author.
