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*