More Than $6 Billion in New Funding to Protect and Transform Canadian Industries

The Government of Canada recently introduced more than $6.5 billion in new funding support measures designed to protect Canadian businesses from tariff shocks, bolster supply chains, and help manufacturers compete globally.  

These government funding programs, most notably the Regional Tariff Response Initiative (RTRI) and Strategic Response Fund (SRF), are positioned to provide tremendous support for small to medium-sized enterprises (SMEs) and large enterprises around the country. 

If your business is in steel, automotive, or other sectors most vulnerable to tariff disruptions, taking advantage of existing grant and loan support can truly be make or break for business operations. All other sectors across Canada should likewise consider the RTRI program as support is allocated for all industries. 

“Southern Ontario businesses are under pressure in today’s shifting trade landscape. By backing local economies and helping companies expand into new markets, we are not only securing Canada’s future prosperity, but helping build a stronger, more resilient, and more productive economy that creates good jobs, drives competitiveness, and supports long-term growth across the region.” 
– Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario 

 

Regional Tariff Response Initiative (RTRI): Local Opportunities, Big Impact 

At the provincial and regional level, the RTRI is designed to help Canadian businesses adapt to trade pressures in their own provinces. For example, in Southern Ontario the RTRI is actively open. Other provinces are rolling out their streams in the coming weeks.  

Key Features of RTRI in Ontario: 

• Funding pool and eligibility: It’s a $450 million national initiative, with nearly $160 million allocated for Southern Ontario. Support is targeted especially toward the steel and automotive sectors. 
• Scope of projects eligible for funding: Improving productivity, lowering costs, adopting technologies, strengthening domestic supply chain resilience, expanding market access, and diversifying beyond single trade dependencies.  
  
  Funding amounts: 
  
• Fully repayable contributions: From about $125,000 up to $10 million. 
• Non-repayable (grant) funding: Up to $100,000 in many general cases; for steel/automotive you may access non-repayable funds up to $1 million under certain conditions. 
• Matching and cost-sharing: There are requirements for matching funding, eligibility of costs, and project timeframes. In general, for non-repayable grants the government covers a portion (depending on sector and project size), and the business/applicant must provide the rest. 

Important to Note: 

• Ontario’s RTRI is open now.  
• Projects must be distinct from any other active FedDev Ontario project (you can’t double dip across different open programs).  
• Businesses need to use the application guide and complete screening to confirm eligibility before applying. Our Ryan team can help. 

Strategic Response Fund (SRF): A Federal-Level Shield 

The SRF is a federal program from Innovation, Science and Economic Development Canada (ISED) aimed at helping Canadian industries hit by trade disruptions, supply chain risks, and global competition. It supports large-scale projects that strengthen domestic production, pivot to new markets, or help industries adopt innovative technologies.  

What Businesses Need to Know: 

• It’s open nationally. Eligible sectors include steel, aluminum, automotive supply chains, and other industries exposed to tariff and trade risk.  
• Projects can include productivity improvements, new product development, supply chain reinforcement, and trade diversification.  
• This fund is non-repayable in many cases and in others may involve repayable contributions; terms depend on project type, scale, and contribution agreement.  

The SRF gives businesses a chance to secure significant grants, especially if they play a role in job protection, regional economic stability, or advancing Canadian competitiveness. 

How These Programs Work Together and What It Means for Small Canadian Businesses 

These funding streams complement each other. The SRF offers national large-scale support, while the RTRI offers regional support for smaller businesses, often more targeted help. For many Canadian small businesses, combining insights from both can maximize chances of successful funding. 

What Small Businesses Should Consider: 

• Assess eligibility early. If you operate in steel, automotive, or in sectors with high tariff exposure, you could be eligible for both SRF and RTRI. 
• Understand project size and funding preferences. If your project is modest, non-repayable grants are more appealing but smaller. If it’s large, repayable contributions may make more sense. 
• Plan for cost sharing and matching. Both programs require you to show how you’ll finance part of the cost. Be ready with budgets, proof of contributions, match-funding, and supporting documents. 
• Time your application. RTRI Ontario is open now; federal SRF is also open. Other provincial RTRI streams will open soon. Make sure you check local intake windows. 

What This Means for Canadian Industries and the Broader Economy 

Together, programs like SRF and RTRI are designed to do more than just put a band-aid on problems; they aim to transform how Canadian industries operate in a changing global environment. 

• Strengthened supply chains: Less vulnerable to foreign tariff shocks or trade barriers. 
• More resilient firms: Companies can absorb disruption better by diversifying markets and modernizing operations. 
• Job protection and creation: Especially in sectors like steel and automotive that are foundational for communities and supply networks. 
• Boost for smaller businesses: Many small businesses don’t have the scale to absorb shocks or invest in innovation without support; these grants provide opportunity. 

Canada’s new funding of more than $6 billion offers one of the bigger recent pushes to protect, adapt, and grow Canadian industries. If you run a business facing trade pressures or want to explore how to scale, diversify, or modernize, these programs offer real opportunity. 

If you are ready to access the Strategic Response Fund (SRF) or Regional Tariff Response Initiative (RTRI), reach out to our Ryan Canada government funding team. We’ll help you evaluate eligibility, gather the right documents, shape your application, and maximize your chances.