The Government of Canada is helping Canadian businesses and industries respond to global trade pressures.
The national Regional Tariff Response Initiative (RTRI), delivered by Canada's regional development agencies (RDAs), is part of the broader Government of Canada tariff response plan to protect Canadian businesses and workers. In Northern Ontario, FedNor delivers the RTRI.
Together, RDAs are delivering $3.45 billion to help businesses affected by tariffs address liquidity pressures, strengthen competitiveness, diversify markets, and build resilience in the face of global trade disruptions. Support is also available for not-for-profit organizations that help businesses adapt, grow, and expand trade opportunities.
Types of RTRI Support Available for Businesses
The RTRI offers different types of support to help tariff-impacted businesses to maintain operations, strengthen competitiveness, and build long-term resilience.
Liquidity Assistance – day-to-day operations
Funding for businesses experiencing tariff-related financial pressures for their day-to-day operations. This support is intended to help companies maintain Canadian operations and retain employees while responding to trade disruptions and planning for longer-term resilience.
Non-repayable funding:
- up to $2 million, subject to the business’ demonstrated liquidity need
- Up to 50% of eligible costs
Funding period: Up to 12 months, ending no later than March 31, 2028.
Pivot Projects
Investments for businesses undertaking activities that improve productivity, increase competitiveness, and reduce exposure to future trade disruptions.
Non-repayable funding:
- Up to $1 million for projects with local or regional economic benefits
- Up to 50% of eligible costs
Repayable funding:
- Over $1 million for larger scale transformative projects
- Up to 75% of eligible costs
Funding period: start and end dates can vary by project, but all projects must be completed by no later than March 31, 2029.
Combining RTRI support
Eligible businesses may apply for up to 12 months of 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 non-repayable pivot project.
- A business may receive up to a maximum of $20 million in total RTRI funding.
Supporting tariff-impacted businesses
The initiative will focus on small and medium-sized enterprises facing tariff pressures with minimum annual revenue of $1 million. Regional development agencies will assess applications based on program criteria, demonstrated need, and the business’s proposed response to tariff impacts.
Eligible applicants
To be eligible, your business must:
- be an incorporated for-profit business located and operating in Northern Ontario
- have a minimum of $1 million in annual revenue in one or both of your company’s last two fiscal years
- have been viable prior to March 21, 2025
In addition, your business must demonstrate that it has been affected by ongoing trade disruptions, including U.S. tariffs, Canadian countermeasures or countervailing duties. This could be demonstrated if your business meets at least one of the following:
- operates in a sector impacted by Section 338 or Section 232 tariffs (including direct exporters and also indirect exposure, for example as a supply chain partner to an affected exporter), or operates in another tariff impacted sector
- has at least 25% or more revenue coming from goods that are ultimately exported to the U.S.
- demonstrate being negatively affected by the tariffs or the uncertainty they have created (e.g., through operating in a sector impacted by tariffs or experiencing cost increases where tariffs have raised the price of goods and materials needed for production; supply chain disruption; or loss of revenue or customers)
- for liquidity assistance, your business must also demonstrate a liquidity need due to tariff impacts
Transportation businesses may be eligible if they can demonstrate that their core business activities are directly tied to the operations or value chain of exporters in the forestry sector.
Professional, scientific, and technical services and warehousing and logistics services businesses may be eligible if they can demonstrate that their business plays a critical role in a tariff-impacted supply chain of a manufacturing exporter.
Support is also available for not-for-profit organizations in Northern Ontario whose primary focus is to support businesses.
Ineligible applicants
- retail businesses, businesses providing local consumer services (e.g., hotels, restaurants, utilities, healthcare, recreation), and oil and gas extraction and construction services generally are not eligible
- not-for-profit organizations and governments seeking liquidity support for their own operating expenses
- not-for-profit organizations seeking liquidity support for their own operating expenses
- businesses that are unable to demonstrate direct or indirect tariff exposure
Types of projects and eligibility
- Liquidity assistance (for businesses): Short-term support, where necessary, to maintain operations and employment. Eligible costs include:
- employee salary and wages
- essential recurring operating expenses related to rent or commercial lease payments, utilities, business insurance and property taxes
- Pivot Projects (for businesses): Designed to help businesses become more competitive and resilient over the longer term. Eligible activities may include:
- productivity improvements and process modernization
- equipment and technology adoption, including automation and digitization
- market diversification and export development
- supply chain resilience
- activities that increase competitiveness and reduce trade-related risks
- Not-for-Profit projects: For organizations in Northern Ontario that support businesses impacted by tariffs
Businesses may apply for both liquidity support and a pivot project at the same time if they require immediate financial support while undertaking activities to strengthen their long-term competitiveness and resilience. Previous RTRI recipients may also be eligible for this liquidity support. Existing RTRI recipients should contact their project officer for more information.
Need other support?
Businesses with annual revenues under $1 million are an important part of the Canadian economy and can be integral parts of value-chains in regional economies. FedNor will continue to work with businesses to understand their circumstances and needs, and to explore potential support options through RTRI focusing on those critical to the relevant value chain, sector or local economy.
Businesses whose needs are not addressed through RTRI are also encouraged to contact FedNor to help them navigate other supports that may be available.
How to apply
The application process is one phase and is submitted through the FedNor self-service portal. It is recommended that you review the application guide.
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.
Applications may be shared with other government departments as appropriate. This may include but is not limited to Employment and Social Development Canada, the Business Development Bank of Canada and other regional development agencies.
Automated systems and/or artificial intelligence may be used to assist review and assessment of applications.
Contact a FedNor Officer in your area or begin your application process.
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