The Government of Canada has announced $7.5 billion in new and enhanced measures to support Canadian businesses and workers affected by U.S. tariffs. The measures include expanded support for small and medium-sized businesses, financing for tariff-affected companies, investment in diversification and productivity, and income and employment supports for affected workers. The Government of Canada has demonstrated their willingness to extend these supports for as long as 36 months – beyond the end of the current U.S. administration.
Government of Canada — Support for Canadian workers and businesses affected by U.S. tariffs
Regional Tariff Response Initiative (RTRI)
Delivered in Alberta by PrairiesCan, the Regional Tariff Response Initiative helps businesses affected by trade disruptions diversify into new markets, invest in productivity and technology, strengthen supply chains, reduce costs and address demonstrated liquidity needs.
- Target: Tariff-affected businesses, with a focus on small and medium-sized enterprises.
- Funding: The federal government is adding $1.5 billion, bringing total RTRI funding to $3.45 billion over four years. The maximum non-repayable contribution is increasing from $1 million to $3 million, including up to $2 million for liquidity support.
- Support: Non-repayable contributions for eligible projects and liquidity needs.
- Eligibility: PrairiesCan — RTRI eligibility
- Apply: PrairiesCan — RTRI application process
BDC Pivot to Grow
The Business Development Bank of Canada (BDC) is expanding its Pivot to Grow program with a new liquidity stream for businesses experiencing cash-flow pressures related to U.S. tariffs. The broader program also supports market diversification, productivity improvements and supply-chain resilience.
- Target: Businesses directly affected by U.S. tariffs, regardless of sector, with annual revenues of at least $1 million.
- Funding: An additional $500 million in liquidity financing, with individual loans ranging from $250,000 to $5 million.
- Support: Repayable loans, with interest-only payments available for up to 36 months. This is not a grant.
- Eligibility: Eligibility information is provided through BDC’s Pivot to Grow program.
- Apply: BDC — Pivot to Grow
Canada Strong Diversification Fund
The federal government is establishing a new Canada Strong Diversification Fund through the Strategic Response Fund to support tariff-affected businesses undertaking investment-ready projects, including capital maintenance and projects involving medium-sized firms.
- Target: Tariff-affected businesses with eligible investment-ready projects, including medium-sized businesses.
- Funding: $2 billion through the Strategic Response Fund.
- Support: The material provided does not specify whether assistance will be repayable or non-repayable; this will depend on the applicable Strategic Response Fund agreement.
- Eligibility: Strategic Response Fund — Check eligibility
- Apply: Strategic Response Fund — How to apply
Rapid Response Supports for Workers
The federal government is providing additional income and employment supports for workers affected by tariffs. Measures include temporary changes to Employment Insurance (EI), extended benefits for long-tenured workers and enhanced job-matching support.
- Target: Workers affected by tariffs and related economic disruption.
- Funding: $3.5 billion in Rapid Response Supports for workers and employers.
- Support: Measures include waiving the one-week EI waiting period; allowing EI benefits before separation payments such as severance or vacation pay are exhausted; extending an additional 20 weeks of EI benefits for long-tenured workers; providing temporary EI flexibility for some workers who voluntarily left a job and subsequently lose employment through no fault of their own; and increasing Job Bank job-matching support.
- Eligibility: Eligibility varies by EI measure and individual circumstances.
- Apply: Employment Insurance — Temporary measures and applications
Workforce Retention and Retraining Program
The new Workforce Retention and Retraining Program will combine Work-Sharing and the Worker Retention Grant into a single program designed to help employers retain and retrain employees during periods of reduced business activity.
- Target: Employers and workers affected by reduced business activity.
- Funding: Employers can receive up to $1,000 per participant for eligible training and administrative costs.
- Support: Workforce retention, retraining and flexibility to maintain employment during periods of reduced activity. The material provided does not specify whether all components of the new program are non-repayable.
- Eligibility: Eligibility requirements will depend on the applicable workforce-retention measure.
- Apply: Worker Retention Grant — Application information and Work-Sharing Program
Large Enterprise Tariff Loan Facility
The federal government is expanding the flexibility of the Large Enterprise Tariff Loan facility to provide longer-term liquidity support to large Canadian businesses affected by tariffs.
- Target: Large Canadian enterprises affected by tariffs.
- Funding: $10 billion loan facility.
- Support: Repayable financing. Eligible liquidity support is being extended from 24 to 36 months, while the maximum loan term is increasing from 10 to 15 years.
- Eligibility: Eligibility requirements are available through the Canada Enterprise Emergency Funding Corporation.
- Apply: Large Enterprise Tariff Loan facility
