On September 9, 2026, FedDev Ontario announced expanded funding under the Regional Tariff Response Initiative (RTRI).
The program helps Southern Ontario businesses affected by tariffs, rising material costs, supply-chain disruptions or lost customers.
How Much Funding Is Available?
Eligible businesses may apply for two types of support:
1. Liquidity Assistance
Businesses facing immediate financial pressure may receive:
- Up to $2 million in non-repayable funding
- Funding for up to 50% of eligible costs
- Support for up to 12 months
Eligible costs may include:
- Employee salaries and wages
- Commercial rent or lease payments
- Utilities
- Business insurance
- Property taxes
This funding is intended to help businesses maintain Canadian operations and protect jobs.
2. Pivot Project Funding
Businesses investing in their long-term competitiveness may receive:
- Up to $1 million in non-repayable funding
- Funding for up to 50% of eligible project costs
- Repayable funding for larger projects
Eligible projects may include:
- Purchasing new equipment
- Automating production
- Adopting new technology
- Improving productivity
- Finding new suppliers
- Entering new markets
- Expanding exports
- Reducing future tariff exposure
All Pivot Projects must be completed by March 31, 2029.
Is the $1 Million the Project Cost Limit?
No. The $1 million is the maximum non-repayable government contribution, not the maximum project cost.
For example, if FedDev Ontario covers 50% of eligible costs, a business would generally need a project with at least $2 million in eligible costs to receive the full $1 million.
Can a Business Apply for Both?
Yes. An eligible business may apply for:
- Liquidity Assistance
- Pivot Project funding
- Both types of funding
A business may receive up to $3 million in combined non-repayable funding:
- Up to $2 million for Liquidity Assistance
- Up to $1 million for a Pivot Project
Larger projects may also qualify for repayable support. Total RTRI assistance may reach $20 million when repayable funding is included.
The same expense cannot be claimed under both funding streams.
Who Can Apply?
A business must generally:
- Be an incorporated, for-profit business
- Be located and operating in Southern Ontario
- Have earned at least $1 million in annual revenue in one of its last two fiscal years
- Have been financially viable before the tariff disruption
- Show that tariffs or trade disruptions have negatively affected the business
How Can a Business Show That It Was Affected?
Examples include:
- Higher aluminum, steel or material costs
- Supplier price increases
- Supply-chain delays
- Lost customers or contracts
- Reduced sales
- Lower profit margins
- Reduced access to U.S. markets
A business does not necessarily have to export directly. Suppliers and contractors working with tariff-affected companies may also qualify if they can demonstrate the impact.
Are Contractors Included as Payroll?
FedDev Ontario lists employee salaries and wages as eligible Liquidity Assistance costs.
Independent contractors should not automatically be included as payroll. However, some contractor or professional-service costs may qualify under a Pivot Project if they are directly connected to an eligible project.
Applicants should confirm contractor eligibility with FedDev Ontario before including these costs.
What Should Businesses Prepare?
Applicants should have:
- Financial statements
- Current payroll reports
- Cash-flow projections
- Evidence of tariff-related cost increases
- Details of lost customers or revenue
- Equipment and contractor quotations
- A project budget and timeline
- Information about the number of jobs protected or created
- An explanation of how the project will improve the business
How to Apply
Southern Ontario businesses can review the requirements and apply through the official FedDev Ontario RTRI webpage.
Applications should clearly explain:
- How tariffs affected the business
- How much financial support is required
- How the funding will protect jobs or operations
- How the proposed project will improve productivity or competitiveness
Funding is not automatic. FedDev Ontario will review the business’s eligibility, financial need, tariff exposure and proposed use of the funds.
This article provides general information only. Approval and eligible costs are subject to FedDev Ontario’s review and the terms of the final contribution agreement.
