What Canada’s $5B Trade Impact Program Means for Local Businesses

In light of recent economic challenges, the Canadian federal government has introduced a series of initiatives aimed at bolstering domestic businesses. These measures are designed to provide financial support, facilitate market diversification, and protect Canadian enterprises from potential external threats. Below we delve into the key funding programs and their anticipated impact on Canadian businesses.​ More information on each of these programs will be announced later, so please stay tuned to the Ryan newsletter for more updates, or reach out to our Canadian government funding consultants to speak with our team working with you on finding and accessing grants, loans, and tax credits when more information has been released by the federal and provincial governments.

$5 Billion Trade Impact Program from EDC

The cornerstone of the government’s response is the Trade Impact Program, administered by Export Development Canada (EDC). This program allocates $5 billion over the next two years to assist exporters in accessing new international markets and managing economic uncertainties. Specifically, the program addresses challenges such as losses from nonpayment, currency fluctuations, cash flow constraints, and obstacles to business expansion. By mitigating these risks, the Trade Impact Program aims to enhance the resilience and competitiveness of Canadian exporters in the global marketplace.

$500 Million in Favourably Priced BDC Business Loans

To further support businesses affected by recent economic shifts, the Business Development Bank of Canada (BDC) is offering $500 million in favourably priced loans, although the exact details of these business loans have yet to be released. These loans target sectors directly impacted by external factors, as well as companies within their supply chains. Beyond financial assistance, BDC provides advisory services in areas such as financial management and market diversification, equipping businesses with the tools needed to adapt and thrive in a changing economic landscape. ​

FCC Agriculture and Food Industry Funding

Recognizing the unique challenges faced by the agriculture and food sectors, Farm Credit Canada (FCC) is extending $1 billion in new financing to reduce financial barriers for these industries. This initiative aims to address cash flow challenges, enabling businesses to adjust to new operational environments and continue supplying high-quality agricultural and food products. By ensuring liquidity, this support helps maintain the stability and sustainability of Canada’s vital agriculture and food sectors. ​

Canadian Investment Protections

In addition to financial support, the government has updated the Investment Canada Act Guidelines to safeguard Canadian businesses from potentially harmful foreign takeovers during periods of economic vulnerability. While Canada remains open to foreign investment, these measures ensure that such investments do not compromise the country’s economic security. This proactive stance protects domestic enterprises and preserves Canada’s economic landscape. ​

Get Started with Export Funding Program Applications

The Canadian government’s comprehensive response to recent economic challenges underscores its commitment to supporting domestic businesses. Through targeted financial programs and protective measures, Canadian enterprises are better equipped to navigate uncertainties and capitalize on new opportunities. For businesses seeking to offset the impact of these challenges on their export projects, exploring available government grants, loans, and tax credits is a prudent step for upcoming programs such as the CanExport SMEs 2025 intake period.

We encourage you to contact our Canadian funding experts to discuss your upcoming projects that could benefit from offsetting the costs of tariffs or other ongoing changes to Canadian trade deals using government grants, tax credits, and loan programs.