Weathering The Tariff Storm: Federal And Provincial Support Programs Available To Canadian Businesses

In response to tariff measures on both sides of the Canada-US border — summarized in prior McMillan bulletins¹ — Canada’s federal and provincial governments have launched targeted support programs for affected Canadian businesses. These programs complement the broader regulatory, tax, and investment incentives being deployed by the Government of Canada.²

This bulletin summarizes the key trade-related support programs that are in place federally, as well as in British Columbia, Alberta, Ontario, and Québec.

As a general comment, notwithstanding that several of these programs provide for online application portals, the larger funding sources involve extensive engagement with government officials and a rigorous due diligence process. Companies considering pursuing these more substantial funding avenues will be well served by working with government and experts to best position their applications.

Federal Programs

Canada’s Federal Government has taken the lead role in rolling out business assistance programs for tariff-affected Canadian companies.

Regional Tariff Response Initiative (“RTRI”)

The RTRI is a $3.45 billion fund to help small and medium-sized enterprises weather global trade disruptions and increase domestic trade. The RTRI is administered through the federal government’s seven Regional Development Agencies (“RDAs”), with each RDA responsible for funding requests in its geographic area.

Two types of support are offered under the RTRI program.

• The liquidity assistance stream offers eligible businesses up to $2 million in non-repayable funding intended to help maintain operations and retain employees while responding to trade disruptions and planning for long term resilience. The funding period covers up to 12 months ending no later than March 2028.
• The pivot project stream is intended to finance investments for businesses that improve productivity, increase competitiveness and diversify trade exposure. This stream offers eligible businesses up to $1 million in non-repayable funding for projects with local or regional economic benefits, and over $1 million in repayable funding for larger scale transformative projects.
• Eligible businesses may apply for funding under both streams of the RTRI program, meaning that a business could receive up to $3 million in combined non-repayable funding.

The eligibility requirements for the RTRI financing include: incorporation and operations in the particular region; $1 million of revenue in at least one of the last two fiscal years; profitable operations prior to the imposition of tariffs; and demonstrated direct or indirect exposure to continuing trade disruptions. Exposure to tariff impacts may be demonstrated by way of operating in a tariff-affected sector; having at least 25% of revenues coming from goods ultimately exported to the United States; a significant increase in input costs caused by tariffs; supply-chain disruptions; and/or a loss of revenue or customers.

Businesses interested in applying for RTRI funding should review the appropriate RDA’s website, as linked below, for more information on program details and eligibility requirements:

• Atlantic Canada: Atlantic Canada Opportunities Agency
• Québec: Canada Economic Development for Québec Regions
• Yukon, Northwest Territories and Nunavut: Canadian Northern Economic Development Agency
• Southern Ontario: Federal Economic Development Agency for Southern Ontario
• Northern Ontario: Federal Economic Development Agency for Northern Ontario
•  Alberta, Saskatchewan and Manitoba: Prairies Economic Development Canada
• British Columbia: Pacific Economic Development Canada

Canada Strong Diversification Fund (“CSDF”)

The Federal Government announced on August 25, 2026 that it would provide $2 billion in funding for the new CSDF, which is a new stream of the existing Strategic Response Fund. This fund provides support to tariff-impacted companies, which includes ongoing capital maintenance. The CSDF will also work closely with Regional Development Agencies to provide a fast-track, one-step project review and approval process to improve efficiency.

The CSDF focuses primarily on proposals with eligible project costs of more than $20 million and requests for federal contributions of $10 million or more. Two types of support are offered under the CSDF, each with distinct eligibility criteria.

Stream 1 supports Canadian businesses in tariff-impacted industries such as aluminum, automotive, forest products, and steel in adapting, pivoting and diversifying the Canadian economy. Funding decisions will prioritize projects in highly trade-exposed sectors, projects with front-end development costs and capital expenses that will help companies pivot toward alternative markets, projects that are critical to maintaining industrial or skills capacity in Canada; and projects that help companies develop capacity to supply the Canadian market or accelerate trade exports.

Stream 2 offers immediate, non-repayable liquidity to support capital maintenance for businesses in sectors affected by US “Section 338 tariffs” for a period of up to two years. Funding of up to $5-30 million is available to assist with ongoing capital maintenance. Priority will be given to requests of $10 million or more. Eligible businesses are incorporated or registered in Canada, carry out business in Canada, have at least 10 full-time employees, generate at least $20 million in annual revenue, have spent at least $5 million in average annual capital expenditures over the past 3 fiscal years, and are directly or indirectly impacted by Section 338 tariffs. Both for-profit and not-for-profit organizations are eligible.

Organizations interested in applying should consult the CSDF program website for more information on program details and eligibility requirements, and should engage with experts and government directly.

Large Enterprise Tariff Loan (“LETL”)

The LETL was announced by the Federal Government in March 2025 and is managed by the Canada Enterprise Emergency Funding Corporation (“CEEFC”). It provides liquidity assistance through interest-bearing term loans to large Canadian enterprises facing significant tariff impacts. There is no minimum loan amount and each application will be assessed on a case-by-case basis based on reasonable business assumptions and demonstrated needs.

To be eligible for LETL loans, the applicant must be a large Canadian business that has significant operations or a significant workforce in Canada; generate $150 million or more in annual Canadian revenue; has no going concern qualification in its most recent annual or interim financial statements; is not bankrupt or insolvent; and has already attempted to obtain market financing. Recipients of LETL support must implement an employment plan and a commercially feasible Buy Canadian policy.

On August 25, 2026 the Federal Government announced more flexibility to LETL terms, by 1) increasing the size of liquidity supports from 24 to 36 months of company liquidity needs; and 2) increasing the maximum loan term from 10 to 15 years.

Organizations interested in applying should consult the LETL program-specific website and Factsheet for more information on program details and eligibility requirements , and should engage with experts and government directly.

Business Development Bank of Canada (“BDC”) – Pivot to Grow Program

The Federal Government will introduce a $500 million liquidity stream to provide working capital to businesses facing cash-flow shortfalls as a result of US tariffs. This liquidity stream is distributed through the BDC’s Pivot to Grow program. Eligibility criteria are being changed to lower revenue thresholds and more favourable interest rates will be available, for terms as low as 0% on the first year. The Pivot to Grow program offers three sub-streams: (1) a liquidity support loan of up to $5 million, repayable over 60 months, with interest-only payments for up to 36 months; (2) a working capital pivot loan of up to $5 million, repayable over 60 months, with interest-only payments for up to 24 months, available to businesses that present an adaptation plan to reposition their operations; and (3) an equipment financing loan of up to $5 million, repayable over 144 months, with interest-only payments for up to 24 months. The maximum combined exposure per borrower across all three sub-streams is $10 million.

The minimum criteria are that the business must be Canadian-based and in business for at least 3 years, with annual revenue at $1 million (or more), historically positive cash-flow, and a minimum of 15% of sales must be derived from exports to the US. The business must also demonstrate that its operations and profitability have been or are at risk of being materially and adversely affected by US tariffs.

Organizations interested in applying should consult BDC’s Pivot to Grow website for more information on program details and eligibility requirements.

BDC – Steel and Aluminum Support Program

Separately, the BDC administers a $1 billion program to support manufacturers in the steel, aluminum and copper sectors, including manufacturers of products composed in whole or in significant part of those materials. The program offers working capital loans ranging from $250,000 to $50 million at preferential interest rates, repayable over 36 months. To be eligible, businesses must be established in Canada, have annual revenues of $1 million or more, have been in business for at least 3 years, and export to the United States.

Organizations interested in applying should consult BDC’s program-specific website for more information on program details and eligibility requirements.

Export Development Canada (“EDC“) – Trade Impact Program

Through its Trade Impact Program, Export Development Canada has made available a $5 billion envelope in financing, guarantees and insurance to support Canadian exporters and their suppliers in managing increased costs, protecting cash flow and responding to tariff disruptions. Priority sectors include steel, aluminum, lumber, manufacturing and agri-food. The specific solutions available — including direct financing, guarantees and trade credit insurance — are tailored to the needs and circumstances of each applicant.

Organizations interested in applying are asked to contact EDC directly for more information on program details and eligibility requirements.

Rapid Response Supports for Workers and Employers

On August 25, 2026, the Federal Government announced $3.5 billion in “Rapid Response Support” for workers and employers affected by tariffs. Workers will see extensions and increased flexibility on Employment Insurance (“EI”) terms, and increasing support to match workers with jobs on JobBank.gc.ca. Employers will benefit from support through a Workforce Retention and Retraining Program which combines the existing EI Work-Sharing program and Worker Retention Grant into a single program which provides new Work-Sharing flexibilities and allows employers to be eligible for additional funds to cover training and administrative costs (up to $1,000 per participant).

British Columbia

The Government of British Columbia has launched two key programs for helping businesses navigate tariff risk and pivot operations.

Rural and Remote Employment Initiatives Fund (“RREIF”)

The RREIF is jointly funded by the British Columbia and federal governments and is administered through B.C.’s Northern Development Initiative Trust. It seeks to support Northern B.C. communities through four programs: Business Diversification and Sustainability, First Nation Business Development Capacity, Business Advisory Support, and Labour Market Research Plans.

The program provides funding to help businesses in Northern B.C. respond to tariff-related impacts and strengthen their long-term operations. The program supports capital investments that allow businesses to diversify, expand into new markets, introduce new products or services, improve productivity and sustain or create employment. Businesses can receive up to $200,000, covering a maximum of 75% of eligible project costs.

Eligible applicants include small and medium-sized businesses, Community Contribution Companies, First Nation businesses in eligible industries, First Nation development corporations and registered not-for-profit organizations operating within the Northern Development Initiative Trust service region.

Organizations interested in applying should consult the Northern Development Initiative Trust program-specific website for more information on program details and eligibility requirements.

Canada-BC Workforce Tariff Response Forestry Grant

The Canada-BC Workforce Tariff Response Forestry Grant has launched a first funding stream to assist forestry workers, employers, contractors and communities affected by tariffs, duties and broader disruption in the forestry sector. The Forestry Training Fund represents a $20.8-million investment and is expected to support approximately 1,400 forestry workers, contractors and employers throughout BC.

The Fund supports rapid re-employment and skills training; wage subsidies and workforce-stabilization measures; as well as community-led projects that create employment and strengthen forest-dependent economies. The program can provide up to 85% of eligible staff wages and training costs, with caps of $50,000 per employee and $1 million per organization.

The Forestry Training Fund is available to forestry sector organizations including Indigenous organizations and First Nations, incorporated public or private corporations of any size, and eligible not-for-profit organizations whose purpose is to create jobs and economic benefits in the industry. Organizations in other natural-resource sectors may also qualify where they are hiring and training displaced forestry workers.

Organizations interested in applying should consult the Northern Development Initiative Trust program-specific website for more information on program details and eligibility requirements.

Alberta

Alberta businesses can access several new programs designed to help mitigate tariff impacts and pivot their business operations in tariff-affected industries.

Alberta Export Expansion Program (“AEEP”)

The AEEP is a provincial grant designed to help Alberta-based businesses offset the costs of entering new international markets by participating in formal outbound trade events abroad.

Eligible applicants can receive up to $15,000 per fiscal year (April 1 to March 31), including per diems of $400/day for the first traveler and $200/day for the second traveler. Formal event registration fees are also reimbursable to a maximum of $1,000 per event. The funding is non-repayable, and applications are accepted on a rolling basis, submitted no later than two months after the first day of participation in a formal trade event.

To be eligible, applicants must be legal entities incorporated in Alberta with a permanent physical presence (for at least one year) and at least one full-time employee in the province. For-profit businesses must have annual gross sales between $250,000 and $25 million, fewer than 500 full-time employees, and must be entering a new market that represents less than $150,000 in gross sales or less than 15% of their sales in the last complete tax year. Non-profit organizations are also eligible, provided they offer specific services to Alberta SMEs for trade and export activities, have at least one full-time employee in the province, and can demonstrate how their participation in the event would benefit Alberta companies.

Organizations interested in applying should consult the AEEP program-specific website for more information on program details and eligibility requirements.

Canada-Alberta Workforce Resilience Initiative

The Canada-Alberta Workforce Resilience Initiative is a jointly funded federal-provincial program that delivers two distinct streams of financial support for employers, industry associations, and communities in sectors operating in a shifting global trade environment.

• The Workforce Planning Grant supports sectors and communities in developing strategies for workforce transitions and transformation, with a focus on occupation and skills transferability, training pathway design, and workforce adjustment planning.
• The Employer-led Training Grant provides funding to eligible organizations to develop and deliver training for currently employed workers in trade-exposed industry sectors.

Eligible trade-exposed sectors for the Employer-led Training Grant include agriculture, forestry, fishing and hunting; manufacturing; mining, quarrying, and oil and gas extraction; transportation and warehousing; and wholesale trade. Eligible applicants include for-profit businesses, employer organizations (including chambers of commerce), community economic development organizations, and industry or sector associations. The Workforce Planning Grant also extends eligibility to non-profit organizations, municipalities, employee organizations, Indigenous groups and communities (on or off reserve), and organizations with charitable status.

Organizations interested in applying should consult the Canada-Alberta Workforce Resilience Initiative program-specific website for more information on program details and eligibility requirements.

Ontario

The Government of Ontario has launched two new programs aimed specifically at mitigating the adverse effects of the most recent round of US tariffs on Ontario businesses. These programs complement other trade-related measures already in place, namely the Trade-Impacted Communities Program (application intake now closed) and the Ontario Made Manufacturing Investment Tax Credit (ongoing).

Protect Ontario Financing Program (“POFP”)

On August 24, 2026, the Government of Ontario announced it was expanding the list of businesses eligible for support through the POFP . When first inaugurated in August 2025, the program was available to certain sectors affected by Section 232 tariffs. The government has now expanded availability to designated sectors subject to Section 338 tariffs, namely: mechanical equipment; electrical machinery; plastic products; beverages; paper products; furniture; jewelry; precious metals; beauty products; personal care products; dairy products; textiles, consumer goods, leather products, and footwear products.

The POFP draws upon a $1 billion fund for financial support for businesses facing significant disruptions due to US tariffs. The program provides term loans to support working capital costs (e.g., payroll, leases, utilities) with a minimum loan amount of $250,000 and a repayment window of up to 6 years. Term loans may be extended at as low as market prime-rates and may involve principal-free loan repayment for up to 12 months.

To be eligible for POFP support, a business must operate within the province of Ontario in a sector affected by designated Section 232 or Section 338 tariffs; generate at least $2 million in annual revenue; have at least 10 full-time employees in Ontario; demonstrate a history of at least 3 years of operations; and face material working capital challenges due to the tariffs. Critically, eligibility for POFP financing is contingent on having exhausted or faced significant barriers in accessing federal support options for access to working capital.

Organizations interested in applying should consult POFP’s program-specific website for more information on program details and eligibility requirements, and should engage with experts and government directly.

Ontario Together Trade Fund (“OTTF”)

The $150 million OTTF provides financial support – mostly in the form of grants and loans – to small and medium-sized businesses operating in Ontario. In order to encourage investment and mitigate the effects of US tariffs, the OTTF provides conditional funding for eligible project activities including market diversification, sales expansion, increasing local manufacturing capacity, creating jobs, procuring advanced equipment, upgrading facilities, entering new markets or new sectors, and investing in the development of innovative technologies.

Generally, OTTF funding is extended in the form of grants or loans for 10-20% of eligible costs, up to a maximum of $5 million. However, programs that offer exceptional benefits to Ontario and are aligned with provincial priorities may receive funding for up to 75% of eligible costs. Such priorities include diversifying trade relationships, expanding manufacturing capacity, creating jobs, and building local supply chain capacity in Ontario.

Loans under the OTTF are interest free for the duration of the eligible project period, followed by a 4 year pay-back period. Up to 30% of the loan may be forgiven if investment and job creation targets are achieved. Successful applicants must enter into a loan agreement and provide security.

OTTF funding will only be extended to businesses that operate within Ontario; have at least 3 years of operations and financial statements; have at least 5 fulltime active employees; and demonstrate significant adverse impact(s) due to the imposition of US tariffs.

Organizations interested in applying should consult OTTF’s program-specific website for more information on program details and eligibility requirements.

Québec

The Gouvernment du Québec has implemented a variety of new measures aimed at providing support to Québec businesses and workers affected by US tariffs. These programs complement a broader suite of existing trade-promotional programs offered by the government, described online here. There are additional support programs being administered by Québec’s municipalités régionales de comté (“MRC”), including pauses on the repayment of financial assistance obtained through the Fonds locaux d’investissement.

Investissement Québec (“IQ”): Fonds offensif pour le renforcement des capacités économiques (“FORCE”)

IQ’s FORCE fund provides loans of up to $50 million to eligible Québec exporters to support operating costs for a period not exceeding one year. The repayment schedule allows for no principal repayments for up to 24 months, with an interest-free period of 12 months followed by a tiered schedule for the remainder of the repayment period.

For loans less than $10 million, the loan amount is capped at 50% of the company’s export revenues to the US in the last fiscal year. For loan applications greater than $10 million, the loan amount is capped at 75% of the company’s eligible operating costs up to an amount not exceeding $50 million.

Companies obtaining loans under the FORCE program are also capped at receiving $50 million in total government support obtained at the federal, provincial or municipal level.

The eligibility criteria for FORCE funding include registration in Québec for a period of at least 2 years; annual revenues of at least $2 million in the most recent annual fiscal year; profitability in one of the last two fiscal years; and operations in the manufacturing or primary (e.g., agricultural, mining or forestry) sectors. Additionally, for loan applications of less than $10 million, the applicant must have generated at least 25% of its annual revenues from exports to the US in one of the last two fiscal years. For loan applications of more than $10 million, the loan applicant must be deemed a “strategic” enterprise by Québec’s Ministère de l’Économie, de l’Innovation et de l’Énergie.

Organizations interested in applying should consult the FORCE program-specific website for more information on program details and eligibility requirements, and should engage with experts and government directly.

Programme d’aide d’urgence aux petites et moyennes entreprises (“PAUPME”)

The PAUPME program provides loans of up to $150,000 to eligible small and medium enterprises in Québec to support operating costs as they adjust their supply chains and business plans. The loan amount is capped at 75% of the company’s liquidity needs for a period of 12 months. The program includes no repayment of the loan capital for a period of 12 months, subject to a further 12 months extension on request. The loan is interest-free for the first year, with an interest rate of 3.86% afterwards, amortized over a period of 60 months.

The eligibility criteria for PAUPME financing include: registration in Québec for a period of at least 2 years; revenues between $200,000 and $2 million in the most recent annual fiscal year; profitability in one of the last two fiscal years; evidence that at least 25% of annual revenues directly or indirectly related to exports to the US; evidence that the loan applicant has been adversely affected by US tariffs; and the submission of a plan of proposed steps to ensure continued viability.

Companies listed on Québec’s Registre des entreprises non admissibles aux contrats publics are not eligible for PAUPME financing, and applicants must likewise be in compliance with their obligations related to any prior public funding obtained from the Government of Québec. Government-owned or insolvent businesses are likewise ineligible.

Organizations interested in applying should consult the PAUPME program-specific website for more information on program details and eligibility requirements.

Conclusion

The international trade landscape has shifted significantly over the past two years, adversely affecting businesses across the Canadian economy. Beyond various tariff mitigation strategies, such as remissions and rule of origin engineering are available, Canadian businesses of all sizes can also draw also upon a wide range of support programs from both the federal and provincial levels of government.

Organizations considering applications for these programs should expect a reasonable level of scrutiny and due diligence, particularly where the funding requests are substantial. In our experience, applicants are well served by working with experts to prepare their applications and engaging with government officials throughout the application process.

Footnotes

1. See previous McMillan Bulletins: US Announces 50% Tariffs on Canadian Goods: Are Your Exports Affected?; Canada Retaliates – Counter-Tariffs Create Risks and Opportunities for Canadian Businesses.

2. See McMillan Bulletins: Mega Tax Measure, Mega Opportunity: What Businesses Should Know About Canada’s New Productivity Mega Deduction; Cleared for Investment: Canada Opens the Door to Private Capital at its Largest Airports; Canada Removes Federal Impact Assessment Requirements for Certain Pipelines, Transmission Lines and Other Major Energy Projects; Powering Up: Grid Access, Strategic Screening and Canada’s Emerging Data Centre Regimes.