LETL Program Offers Financial Relief to Canadian Companies Affected by U.S. Tariffs

In the face of escalating trade tensions, Canada’s newly announced Large Enterprise Tariff Loan (LETL) Facility Program emerges as a financial lifeline for large enterprises navigating the choppy waters of U.S. tariffs.   

As U.S. tariffs continue to challenge Canadian businesses, the Government of Canada has introduced the LETL facility program. This government funding program aims to provide substantial financial relief to large Canadian enterprises adversely affected by these trade measures, ensuring they maintain operations and safeguard employment. 

Funding Snapshot: The LETL Facility Program 

Launched late March 2025, the LETL facility program is managed by the Canada Development Investment Corporation (CDEV) through its subsidiary, the Canada Enterprise Emergency Funding Corporation (CEEFC). The LETL facility program offers interest-bearing term loans to large Canadian enterprises that have been, or anticipate being, impacted by ongoing tariffs and countermeasures.  

Funding Amount: 

• Minimum loan amount: $60 million 
• Funding provided through interest-bearing term loans, customized based on applicant’s needs and financial assessments 

Eligible Applicants: 

• Large Canadian enterprises with annual Canadian revenues of approximately $300 million or more 
• Companies directly impacted or anticipating impact from U.S. tariffs and Canadian countermeasures 
• Organizations with substantial Canadian operations and workforce 
• Financially viable enterprises prior to tariff-related disruptions 

Eligible Expenses: 

• Operational costs directly incurred from tariffs and related trade disruptions 
• Expenses related to maintaining workforce employment levels 
• Costs associated with supply chain adjustments or operational pivots required to mitigate tariff impacts 

Timeline: 

• Applications opened: March 2025 
• Funding availability continues while tariff impacts and related economic conditions persist. 
• Applicants are encouraged to apply early because of high anticipated demand and comprehensive evaluation process. 

Alternative Government Funding Programs Amid Tariffs 

Beyond the LETL facility program, the Canadian government has implemented several programs to assist businesses affected by tariffs: 

• Export Development Canada (EDC) Trade Impact Program: EDC is deploying $5 billion over two years to assist exporters in reaching new markets, offering financial support to businesses diversifying beyond the U.S. market. 
• Trade Diversification Corridor Fund: This $5 billion investment intends to develop infrastructure supporting trade diversification and reducing reliance on U.S. markets. 
• Business Development Bank of Canada (BDC) Pivot to Grow Program: BDC is allocating $500 million in favorably priced loans to sectors directly affected by tariffs, alongside advisory services to help businesses adapt. 
• Tax Relief Measures: The Canada Revenue Agency (CRA) has deferred remittances and corporate income tax payments for the goods and services tax (GST) and harmonized sales tax (HST) from April 2 to June 30, 2025, providing interest relief on existing balances during this period. 
• 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.   
• Tariff Remission Process: This framework allows eligible businesses to apply for relief on specific U.S. imports, providing financial respite from added costs. 

These programs, among others available provincially such as the Ontario Together Trade Fund (OTTF), form a comprehensive support system to help Canadian businesses navigate the challenges posed by international trade disruptions. 

Funding Application Process and Next Steps 

Businesses interested in the LETL facility program should begin by submitting an enquiry form to CEEFC. Upon evaluation, qualifying applicants will receive further instructions, including a non-disclosure agreement and detailed application form.  

It’s crucial for enterprises to act promptly, as the LETL facility program is available while the current economic situation persists. Early engagement with the program can provide the necessary liquidity to weather the impacts of tariffs and position businesses for long-term stability. 

Our Ryan Canada Government Funding team of experts can help guide your business through every step of the application process. Connect with our team to maximize your funding application success rate.