Support for Manufacturers in Urban as well as Rural Areas of Ontario

Ontario’s Advanced Manufacturing and Innovation Competitiveness Stream Program advertises 15% up to $5 million in interest-free loans and $1.5 million in grants (i.e. non-repayable/forgivable)  towards investments that create jobs and lead to economic growth/expansion/global competitiveness. Eligible expenses include new equipment/technology, consulting services, facility retrofits and expansions, as well as employee training and other project-related costs. Eligible businesses must be or planning to operate in Ontario, have 10 or more employees, plus provide 3 years audited or reviewed financial statements. Projects need to be 3 to 4 years in duration, with $500,000 or more eligible expenses, create and/or upskill a minimum of 5 jobs, plus occur in the advanced manufacturing sector i.e., automotive, aerospace, life sciences (including cannabis and food processing), wood manufacturing, information and communications technology, steel and chemical manufacturing.

Businesses in a municipality with populations under 100,000 or per square kilometre population density of 100 or under can request 15% up to $500,000 in grant funding. Conversely, business in higher populated areas (e.g., Toronto and Hamilton), can apply for interest-free loans of 15% up to $5 million with 30% up to $500,000 of the loan being forgiven (i.e., a grant) if the applicant meets promised job and investment targets. Strategic new investments to Ontario (companies without a presence in Ontario), or companies whose investment plans (including new mandates, expansion, or re-shoring/relocation) are subject to significant risk due to incentives offered from other jurisdictions, are eligible to receive 15% up to $1.5 million as a grant.

Typically, more than 50% of the program’s contribution is paid near or at the end of the project (e.g., year 3 or 4). Applicants must begin to repay awarded loans once the project is completed, at which time the government charges approximately 5% annually (i.e., provincial cost of borrowing plus 3%) on unpaid balances. Successful applicants are not allowed to secure other provincial funding for their project while receiving program support.

Only costs incurred on or after the application is approved (April 30, 2026) are eligible for support. The applications open November 4, 2025. Application deadline: February 3, 2026.

Support Retroactive to March 2025 for Equipment Purchaszed by Wood, Steel and Automotive Manufacturers 

Canada’s Regional Tariff Response Initiative (RTRI) offers 75% project funding up to $10 million in interest-free loans and 50% up to $1 million to Canadian businesses and organizations impacted by U.S. and China.

Eligible businesses include but not limited to wood, steel, automotive manufacturers. Applicants must have 5 to 499 employees, been incorporated for no less than three years, plus demonstrate that at least 25% of their revenues are in tariff-affected markets or show direct negative impacts resulting from the tariffs, e.g. increased costs, reduced sales, or lost market access.

Eligible activities include adopting or adapting technologies, automating, or digitizing production, reshoring R&D or manufacturing, expanding into new markets, as well as strengthening domestic supply chains and compliance standards.

Eligible expenditures include incremental employee wages, consulting fees, equipment purchases and installation, facility retrofits, marketing and outreach, training, and direct project materials. Ineligible costs include land and building purchases, vehicle costs, debt refinancing, entertainment, and ongoing operating expenses. Projects must begin after March 2025 and be completed no later than 31 March 2028.

Note: Deadline for applications in Quebec is October 30, 2025. In all other province applications will be accept on an ongoing basis until provincial funding allocation has been committed.