Regional Tariff Response Initiative

Expected Results

• Business productivity, enhanced competitiveness and reduced costs, thereby mitigating tariff impacts; and 
• Greater resiliency among businesses through more robust domestic supply chains, enhanced internal trade, market diversification and future-proofing their operations.

Eligible Applicants

Eligible applicants include:

• Incorporated small and medium-sized enterprises (SMEs) including Indigenous (First Nation/Métis/Inuit) businesses that meet the following parameters:
  • Located and operating in Northern Ontario.
  • Employ 5 or more full-time employees.
  • Viable for at least 3 consecutive years.
  • Have minimum sales of 25% in the markets targeted by the tariffs, OR able to demonstrate being negatively affected by the tariffs including, but not limited to:
    • Increased cost for the purchase of production materials
    • Increased costs from suppliers
    • Increased retail cost of finished product
    • Reduced purchase orders or sales
    • Addition of an import or export tax
    • Loss of market access
    • Other evidence demonstrating that the business has been negatively impacted.

Note: Priority may be given to manufacturers, suppliers, and value-added businesses operating in the steel, automotive, critical minerals, mining, forestry, clean technology, bioeconomy, and agriculture sectors.

Retail and those operating in the tourism sector are not eligible under this program.

Eligible Activities

Eligible activities include, but are not limited to:

• Digitization, automation or technology integration investments that enhance SME productivity and competitiveness.
• Market diagnostics, development and expansion activities to support SMEs, including participation in trade missions, diversify their customer base and reduce exposure.
• Establishing strategic alliances, optimizing supply chain logistics, and ensuring compliance with standards, to enhance global and/or domestic presence, thereby reducing dependence on suppliers and customers.
• Strengthening domestic supply chains and facilitating internal trade to enhance the resilience and reliability of domestic markets.
• Business support, market development in all markets, and guidance services, e.g., advice for SMEs from a sectoral intermediary organization.
• Reshoring or onshoring of production, research and development mandates and/or highly qualified personnel/expertise to the region.

Eligible Costs

Eligible costs include costs such as:

• Cost of labour (e.g., wages and benefits) and of material used that are incremental and directly related to the project;
• Capital costs: purchase of machinery, equipment and infrastructure.
• Consultancy fees (e.g. professional, and technical services);
• Advisory Expenses (e.g., planning, business information, counselling advisory services; coaching, mentoring or networking events; workshops or conference fees; fees associated with participation in business training through a business service organization); and
• Costs related to expanding or maintaining markets.

Note:

• Eligible costs may be retroactive to up to a 12-month period prior to the receipt of a funding application, but no earlier than March 21, 2025. Projects must be completed no later than March 31, 2028.
• Applicants are encouraged to consider Canadian materials and content, where such materials and content are competitive and available.

Ineligible Costs

Any costs deemed not reasonable and/or not directly related to the eligible project activities are ineligible, including:

• Regular maintenance and/or ongoing operation costs;
• Regularly scheduled capital expenditures and/or asset replacement;
• Refinancing of an existing debt;
• Costs of amortization and goodwill;
• Acquisition of land and buildings;
• Entertainment expenses;
• Lobbying activities;
• Basic research;
• The purchase of any assets for more than the fair market value of the said asset; and
• Costs for which the applicant has entered into a legal commitment/incurred prior to the eligibility date.

Funding Conditions

Funding will be based on the minimum amount required to carry out the project.

Non-Repayable Contributions to a maximum of $1 million:

• Eligible for reimbursement up to 50% towards eligible costs.

Repayable Contributions over $1 million:

• Eligible for reimbursement up to 75% of eligible costs.
• Terms of repayment will be determined during the development of the contribution agreement.

Other Considerations

In addition to meeting the program eligibility criteria, all projects will be assessed against the following:

• Capable of entering into legally binding agreement
• Managerial, technical, and operational capacity to achieve the project's stated objectives in a timely manner
• Degree to which the company and/or sector are impacted by tariffs
• Degree to which the project supports new or expanded initiatives for your company
• Degree to which the project helps the company boost productivity, catalyze growth, and/or diversify markets through new or expanding initiatives
• Company’s role within the sector and its impacts on the region
• Quality of the project plan and budget, including:
  • Project readiness
  • Ability to repay (if applicable)
• Degree of risk and mitigation measures
• Quality of Intellectual Property (IP) strategies for IP-intensive projects
• Accrual of project benefits to Northern Ontario
• Financial capacity to complete the project
• Expected results of the project

Completing an application does not guarantee funding approval. All applications will be assessed as they are received. This will include a review of the business case and financial projections, and the identification of any issues that may impact the project's success. Approval will also depend upon funding availability.

How to Apply

The application process is two phases and submitted through the FedNor self-service portal. It is recommended that you review the initial application guide.

Please call 1-877-333-6673FedNor Officer in your area or begin your application process.

FedNor is committed to providing effective, efficient and client-focused programs and services. Visit our service commitment to find out more.