Businesses in Southern Ontario affected by tariffs and international trade disruptions may be eligible for support through Canada’s Regional Tariff Response Initiative (RTRI). The program is delivered in Southern Ontario by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

The initiative helps eligible businesses respond to changing trade conditions, maintain operations, strengthen supply chains, improve competitiveness and develop new export markets. Eligible not-for-profit organizations that support businesses may also qualify for project funding.

1. What Is the Regional Tariff Response Initiative?

The RTRI is a Government of Canada initiative designed to help businesses respond to the economic effects of tariffs and related trade disruptions. It provides different forms of assistance depending on an applicant’s financial needs and proposed project.

In Southern Ontario, the program offers two main types of business support: temporary liquidity assistance and funding for projects that improve long-term competitiveness and resilience.

2. Types of Funding Available

A. Liquidity Assistance

This support helps eligible businesses experiencing tariff-related financial pressure maintain their Canadian operations and retain employees.

• Non-repayable assistance of up to CAD $2 million.
• Generally covers up to 50% of eligible costs, subject to program rules.
• Support may cover up to 12 months, ending no later than March 31, 2028.
• Eligible expenses may include employee salaries and wages, commercial rent, utilities, business insurance and property taxes.

Applicants must demonstrate a genuine liquidity need linked to tariff impacts. The amount approved depends on the business’s circumstances and eligible costs.

B. Pivot Projects

Pivot project funding supports businesses seeking to become more competitive, productive and resilient to future trade disruptions.

• Non-repayable contributions: Up to CAD $1 million, generally covering up to 50% of eligible project costs for qualifying projects with broader economic benefits.
• Repayable contributions: Funding above CAD $1 million may be available for larger-scale projects, generally covering up to 75% of eligible project costs.
• Project deadline: Funded pivot projects must be completed no later than March 31, 2029.

Examples of potentially eligible activities include equipment upgrades, automation, digitization, production improvements, supply chain diversification, export development and entry into new markets.

3. Who Can Apply?

The initiative is intended for eligible businesses operating in Southern Ontario that can demonstrate negative effects from tariffs or related trade uncertainty.

For-profit businesses generally need to meet these requirements:

• Be incorporated and located and operating in Southern Ontario.
• Have generated at least CAD $1 million in annual revenue in at least one of the last two completed fiscal years.
• Have been a viable business before the relevant tariff impacts, subject to program rules.
• Demonstrate direct or indirect exposure to tariffs or related trade disruptions.
• Provide supporting financial and business information to establish eligibility and need.

Businesses may demonstrate tariff exposure through affected exports, supply chain relationships, increased input costs, lost customers, reduced revenue or other documented trade-related impacts.

Not-for-profit organizations based in Southern Ontario may also qualify if their primary focus is supporting businesses. However, not-for-profit organizations cannot receive liquidity assistance for their own operating expenses under this initiative.

Retail businesses and businesses providing certain local consumer services are generally excluded. Applicants should review the official eligibility criteria before preparing an application.

4. What Documents May Be Required?

Applicants should prepare the supporting information required for their chosen funding stream. Documents may include:

• Financial statements for the last two fiscal years and the latest interim financial statement.
• Articles of incorporation or equivalent organizational documents.
• Business profile and information about ownership and operations.
• Evidence of tariff exposure, such as export sales records, supplier information or documentation of increased costs.
• Details of other government funding received or requested.
• For liquidity assistance, payroll records, cash-flow forecasts and evidence of the funding shortfall.
• For pivot projects, a project plan, budget, expected outcomes and financing details.

Check the current application guide for the complete list of mandatory attachments applicable to your request.

5. How to Apply

Interested businesses and eligible organizations can follow these steps to explore the opportunity:

1. Review the eligibility rules: Confirm that your organization operates in Southern Ontario and meets the relevant program requirements.
2. Identify the appropriate support: Decide whether you need temporary liquidity assistance, a pivot project contribution or both.
3. Gather supporting documents: Prepare your financial statements, incorporation documents and evidence of tariff-related impacts.
4. Develop your proposal: Explain how the funding would address your business needs, protect employment or improve long-term competitiveness.
5. Visit the official program website: Follow the current instructions for obtaining the application form and submitting the required documents.
6. Await assessment: Funding is subject to review and approval by FedDev Ontario.

6. Is There an Application Deadline?

The official Southern Ontario program page currently indicates that applications are being accepted. Applicants should consult the official website for current intake status, submission instructions and any applicable program deadlines before applying.

7. Important Things to Know

• Funding is not automatic, and meeting the basic eligibility requirements does not guarantee approval.
• Applicants must demonstrate how tariffs or related trade disruptions have affected their business.
• Some funding is non-repayable, while larger pivot project contributions may be repayable under an agreement.
• The same expense cannot be funded twice through different government programs.
• Review all official terms and conditions before submitting an application.

Conclusion

The Regional Tariff Response Initiative offers a potential source of support for eligible Southern Ontario businesses facing trade-related challenges. Through liquidity assistance and business transformation projects, the initiative aims to help businesses maintain operations, protect employment, improve productivity and explore new markets.

If your business has been affected by tariffs, review the eligibility requirements and prepare the necessary documentation before applying.