Ontario Small Business Support Grants for Tariffs

With international trade tensions rising because of seemingly ever-changing tariff updates, Canadian businesses need guidance and support now more than ever. 

Recognizing the challenges faced by businesses around Canada, both the federal and provincial governments have introduced a variety of funding support measures aimed at mitigating the impact of tariffs.  

This blog delves into the various grants and programs available for Ontario’s small businesses and offers guidance on how to access these resources and bolster resilience during these economically challenging times. 

 

Understanding the Current Tariff Landscape 

Recent developments have seen the United States implement tariffs on key Canadian exports, including steel, aluminum, and certain automotive products. These measures have disrupted supply chains and increased operational costs for many Ontario-based businesses.  

In response, the Canadian government has enacted countermeasures and introduced financial support to cushion the blow for affected industries.  

Federal and Provincial Support Programs 

Federal Funding Programs 

The Canadian government has unveiled several programs to assist businesses in navigating the challenges posed by tariffs:  

• Trade Impact Program: Administered by Export Development Canada, this $5 billion initiative aims to help exporters access new markets and manage economic uncertainties.  
• Strategic Response Fund for Auto Sector: This proposed $2 billion fund is aimed at enhancing the competitiveness of Canada’s automotive industry and strengthening domestic supply chains.  
• Trade Diversification Corridor Fund: This $5 billion investment intends to develop infrastructure supporting trade diversification and reducing reliance on U.S. markets. 
• Tariff Remission Process: This framework allows eligible businesses to apply for relief on specific U.S. imports, providing financial respite from added costs. 
• Tax Relief Measures: The Canada Revenue Agency has introduced temporary relief, including deferred GST/HST remittances and corporate income tax payments, to support businesses during this period. 

Provincial Funding 

Ontario has also stepped up with its own set of funding support:  

• $11 Billion Relief Package: Premier Doug Ford announced a comprehensive package that includes deferred tax payments and employer rebates to preserve jobs and stabilize the economy.  
• Ontario Together Trade Fund: This $5 million funding program will begin providing funding for Ontario businesses on April 23 to strengthen local supply chains, enhance competitiveness, and offset costs related to tariff-induced disruptions, enabling businesses to remain resilient and competitive in global markets. 

Navigating the Application Process 

Accessing these government funding programs requires a clear understanding of eligibility criteria and application procedures. 

1. Assess Eligibility: Determine which funding programs align with your business needs, and ensure you meet the specified requirements.  

2. Prepare Documentation: Gather necessary documents, such as financial statements, business plans, and proof of tariff impact, to support your application.  

3. Seek Expert Guidance: Consider consulting with funding experts or financial advisors to navigate the application process effectively and maximize your chances of approval.  

As highlighted by our Ryan Canada Government Funding team, leveraging available grants and incentives can significantly offset the financial strain caused by tariffs. 

Tariffs present a significant challenge to Ontario’s small businesses, but with the right support and strategic planning, resilience is possible.  

By tapping into the array of federal and provincial programs available, Ontario businesses can plan and mitigate the impact of trade disruptions and position themselves for sustained economic growth and innovation.