Update: Increased Funding Amounts and Liquidity Assistance to Offset Tariff Impacts

Canada’s Regional Tariff Response Initiative (RTRI) offers up to $20 million to support Canadian businesses and organizations impacted by tariffs and trade uncertainties.

RTRI provides funding for:

Pivot Projects

• • Interest-free repayable contributions covering up to 75% of eligible project costs, to a maximum of $20 million.
  • Non-repayable (i.e., grant) funding covering up to 50% of eligible project costs, to a maximum of $1 million.

Activities that improve productivity, increase competitiveness, and/or reduce exposure to future trade disruptions, such as 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. Pivot Projects must be completed by 31 March 2029.

Liquidity Assistance

• • Up to 50% non-repayable contributions to a maximum of $2 million. 

Funding is intended to help companies maintain Canadian operations and retain employees while responding to trade disruptions. Businesses may apply for up to 12 months of liquidity assistance, ending no later than 31 March 2028.

Businesses may apply for liquidity assistance, Pivot Project funding, or both.

• A business may receive up to a maximum of $3 million in combined non-repayable funding, consisting of up to $2 million in liquidity assistance and up to $1 million for a Pivot Project.
• A business may receive up to $20 million in total RTRI funding, combining repayable Pivot Project support with up to $2 million non-repayable liquidity assistance.

Applicants must have 5 to 499 employees, be incorporated for at least three years and 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 expenditures include employee wages, consulting fees, equipment purchases and installation, facility retrofits, marketing and outreach, training, direct project materials and operating costs. Funding may be provided retroactively for costs incurred up to 12 months prior to the date an application is submitted. 

Program Now Offering Up to $20 Million 

Canada’s Regional Tariff Response Initiative (RTRI) offers up to $20 million in interest-free loans and up to $3 million in grants* to Canadian businesses and organizations impacted by tariffs and trade uncertainties.

Applicants must have 5 to 499 employees, be incorporated for at least three years and 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). Projects that support businesses operating in the steel, automotive or food security sectors will be prioritized for funding.

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. Funding may be provided retroactively for costs incurred up to 12 months prior to the date an application is submitted. Projects must be completed no later than 31 March 2029.

*The Government of Canada recently announced a $1.5-billion expansion of the Regional Tariff Response Initiative (RTRI) to provide additional government funding to businesses affected by tariffs and trade disruptions, including new liquidity support. Eligible businesses may receive up to $3 million in total non-repayable funding, including up to $1 million for eligible investment projects and up to $2 million in liquidity support. To qualify for RTRI liquidity support, businesses must have been viable prior to the imposition of tariffs and have annual revenues of at least $1 million. Further details are expected to be released on 8 September 2026.

Support to Mitigate Tariffs

Canada’s Large Enterprise Tariff Loan (LETL) provides loans of $30 million plus to Canadian enterprises with annual revenues of $150 million or more, who are facing up to a 36-month liquidity shortfall due to new tariffs and have already exhausted traditional funding sources. The program offers financing to support liquidity and working capital requirements to sustain operations and preserve employment.

Eligible applicants include Canadian enterprises that:

• Have significant operations or a significant workforce in Canada
• Were solvent as of December 31, 2024
• Have not filed for bankruptcy or insolvency protection

Financing is determined based on the applicant’s demonstrated liquidity requirements and business plan. There is no stated maximum loan amount. 

Applicants must provide a 24-month employment plan, make reasonable efforts to maintain employment, and commit to a “Buy Canadian” policy that prioritizes domestic suppliers and seeks to increase sales to commercially feasible Canadian markets.

Interest rates are determined based on financial position, employment commitments, contribution to Canada’s economic or national security, supply-chain importance and other factors. Interest will not be lower than the Government of Canada’s 10-year bond yield plus 25 basis points.

Loans cannot be used to refinance existing debt, fund major acquisitions, expansion projects or new ventures, or support operations outside Canada. There is currently no fixed application deadline. 

Program Helps Ontario Businesses Mitigate Trade Uncertainties

The Ontario Together Trade Fund advertises interest-free loans of up to $5 million to help businesses increase interprovincial sales, develop new markets and/or re-shore critical supply chains in the face of U.S. tariffs.

Projects must address the impacts of U.S. trade disruptions and align with Ontario’s key economic priorities, including:

Trade Diversity

• Diversifying sales portfolios: Expanding reach into new markets, with a focus on interprovincial trade.

Trade Security

• Enhancing competitiveness: Increasing manufacturing capacity and capabilities as well as profitability through investments in advanced technology and innovative processes.
• Contributing to regional and sectoral ecosystems: Strengthening Ontario’s supply chains through reshoring and efforts to procure more equipment and supplies from Ontario and Canada.
• Creating and/or retaining jobs

Eligible project activities include:

• Business development (e.g., market diversification and sales expansion)
• Increasing capacity and creating jobs
• Procurement of advanced equipment and facility modification to enhance domestic manufacturing, support reshoring and growing Ontario’s supply chain
• Development of innovative technologies to boost the competitiveness of Ontario’s production and manufacturing capacity
• Product adaptation (i.e., localization) for new markets (e.g., certification, legal, labelling, testing costs)
• Modification of existing products to enter new sectors (e.g., pivoting production from automotive fasteners to construction fasteners)
• Increasing the resiliency of Ontario’s economy in response to trade related challenges, such as purchasing equipment and materials from local suppliers or shifting sales to non-U.S. markets

Priority will be given to projects that aim to capitalize on domestic market opportunities and address gaps in Ontario’s supply chain caused by potential trade barriers and supply disruptions. Projects must occur in Ontario, be completed within 2 years and require a minimum financial expenditure of $200,000. Applicants must demonstrate significant exposure to U.S. trade risks. Eligible expenditures include:

• Facilities and infrastructure
• Equipment and machinery
• One-time labour
• Materials
• Specialized expertise
• Training and talent costs
• Permits and fees
• New market access

Loans will be interest free during the project period (up to two years), typically with a 4 year pay-back period. Up to 30% of the loan to a maximum of $1.5 million may be forgiven if project investment and job targets are achieved. Refinancing, acquisition, restructuring, relocation, acquisitions, buyouts, energy and waste/recycling expenses are ineligible for funding. 

*Click here for Ontario Together Trade Fund program guidelines*

Program Helps Canadian Businesses Respond to Global Trade Pressures

Canada’s Regional Tariff Response Initiative (RTRI) offers 75% funding to a maximum of $10 million in interest-free loans and 50% up to $1 million in grants to Canadian businesses and organizations impacted by tariffs and trade uncertainties.

Applicants must have 5 to 499 employees, be incorporated for at least three years and 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). Projects that support businesses operating in the steel, automotive or food security sectors will be prioritized for funding. 

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. Funding may be provided retroactively for costs incurred up 12-months prior to the date an application is submitted. Projects must be completed no later than 31 March 2028.

Funding Supports Commercialization of Natural Health Products & Technologies

Natural Products Canada has three funding programs to support the commercialization of early stage (i.e., Technology Readiness Levels 4-9) natural health products and technologies:

1. Fast-Track to Financing: 40% up to $25,000 for expertise/consultants to assist in strengthening or revising business or commercialization plans. Eligible activities include:

• • Market, Customer, & Competitive Analysis
  • Value Proposition
  • Regulatory Plan
  • IP Plan
  • Financial Plan
  • Production Plan

2. Access To Talent: 40% up to $150,000 towards an employee’s salary for their first 18 months with the company. Eligible employee activities/responsibilities include but are not limited to:

• • product or technology development
  • conducting pre-commercial business development
  • regulatory strategy and/or collecting necessary data for regulatory submissions.
  • product or technology scale-up

*Hiring an employee for product sales is not eligible.

3. Proof of Concept Program: 40% up to $350,000 to demonstrate the commercial potential of natural products and technologies. The Program does not support basic research, but rather supports activities that demonstrate commercial potential via animal, field, demonstration, or human trials.