Regional Tariff Response Initiative in Southern Ontario (Business)

Overview of the Regional Tariff Response Initiative in Southern Ontario (Business) program:

The Regional Tariff Response Initiative (RTRI) is part of the Government of Canada’s $6.5-billion national tariff response plan designed to protect Canadian industries and workers from the impacts of trade tariffs imposed by the United States, China, and related countermeasures. Delivered by Canada’s Regional Development Agencies (RDAs), the RTRI provides targeted, time-sensitive financial assistance to small and medium-sized enterprises (SMEs) and Indigenous businesses across southern Ontario that have been negatively affected by these trade disruptions. FedDev Ontario’s stream of the RTRI focuses on helping SMEs boost productivity, lower operating costs, strengthen supply chain resilience, and open access to new markets to safeguard long-term competitiveness. Priority consideration is given to companies in the steel and automotive sectors, as these industries face some of the heaviest tariff impacts. However, businesses in all affected sectors are eligible if they meet program criteria. The RTRI supports activities such as digitization, automation, technology acquisition or adaptation, market expansion, reshoring of production, and development of domestic supply chains. The program works in coordination with other federal initiatives, including the Workforce Alliances, Large Enterprise Tariff Loan Facility, BDC’s Pivot to Grow Initiative, and the Strategic Response Fund, ensuring a comprehensive network of support for tariff-impacted businesses. FedDev Ontario also emphasizes Canadian ownership, local economic contribution, completion capacity, and preference for domestic sourcing as part of its assessment criteria. All projects must be viable, feasible, and aligned with Canada’s broader goal of fostering long-term economic resilience and job protection amid shifting trade landscapes.

Benefits of the Regional Tariff Response Initiative in Southern Ontario (Business) program:

• Repayable Funding (Loans): Between $125,000 and $10 million.
• Non-repayable Funding (Grants): Between $125,000 and $1 million.
• Projects must occur within the eligible program timeframe (March 2025 March 2028).

Eligibility criteria of the Regional Tariff Response Initiative in Southern Ontario (Business) program:

• Eligible applicants must:
• Be located and operating in southern Ontario.
• Be incorporated and registered to do business in Canada or Ontario for at least 3 years.
• Be a for-profit business employing at least 5 full-time equivalent (FTE) workers in southern Ontario and fewer than 500 FTEs overall.
• 4, Have been financially viable before tariffs were imposed (prior to March 21, 2025).
• Be either:
  • A company with at least 25% of sales in tariff-targeted markets (U.S. and/or China), or
  • A business that can demonstrate negative tariff impacts, such as: Increased production or material costs; Added import/export taxes; Decline in revenue or market access; Loss of contracts, customers, or export volumes; Employment impacts (layoffs, hiring freezes); or Participation in programs like ESDCs Work-Sharing Program.
• Priority Sectors: Steel, automotive, and other trade-exposed industries.
• Ineligible: Projects duplicating existing FedDev Ontario funding or applications under multiple open programs.