Key Takeaways
- Ontario has expanded the Protect Ontario Financing Program (POFP) to offer up to $1 billion in loans for businesses hit by new U.S. Section 338 tariffs.
- Federal programs like the Regional Tariff Response Initiative and BDC Pivot to Grow offer both repayable and non-repayable funding for SMEs.
- Manufacturing, steel, aluminum, and auto-related businesses face the greatest exposure and have access to sector-specific supports.
- Combining provincial and federal programs is possible, but most require separate applications and documentation.
- Program terms shift frequently, so confirming current details directly with the administering agency before applying is essential.
Why Ontario Businesses Need Tariff Relief Right Now
Ontario’s economy is closely tied to U.S. trade, and recent rounds of American tariffs have put real pressure on local businesses. In August 2026, the province broadened financial support after new Section 338 tariffs added further strain on top of existing steel, aluminum, and auto tariffs.
For many small and mid-sized businesses, this means higher input costs, disrupted supply chains, and tighter cash flow. Rising overhead only compounds the problem — many owners are already managing the impacts of U.S. tariffs and global economic uncertainty alongside other climbing costs like Ontario’s hydro bill increases and property tax hikes.
Provincial Support: The Protect Ontario Financing Program
The province’s primary response tool is the Protect Ontario Financing Program (POFP), first launched in August 2025. As of late August 2026, eligibility has been broadened to reflect the newest wave of tariffs.
Key details:
- Provides up to $1 billion in total liquidity support in the form of loans.
- Covers working capital needs such as payroll, lease payments, and utility bills.
- Open to Ontario-based businesses facing tariff-related cash-flow strain, including those affected by Section 232 (steel, aluminum, copper, auto) and the newer Section 338 tariffs.
- Forms part of Ontario’s broader $30 billion tariff relief and support plan.
Because eligibility criteria have changed more than once in the past year, businesses should verify current terms directly before submitting documentation.
The Ontario Together Trade Fund
Alongside POFP, the Ontario Together Trade Fund (OTTF) offers non-repayable support aimed at helping small and medium-sized businesses adapt structurally rather than just cover short-term costs.
The fund generally supports:
- Diversifying into new international or interprovincial markets
- Re-shoring or strengthening domestic supply chains
- Adopting new technology to improve competitiveness
This program works well for businesses looking to reduce long-term tariff exposure rather than simply bridge a temporary shortfall.
Federal Programs Worth Knowing
Several federal programs complement Ontario’s provincial supports:
- Regional Tariff Response Initiative (RTRI): Offers repayable and non-repayable contributions for SMEs responding to tariff disruption, with expanded funding effective September 2026.
- BDC Pivot to Grow Program: A new liquidity stream offering working capital loans to businesses facing tariff-driven cash-flow shortfalls.
- Large Enterprise Tariff Loan (LETL): Aimed at larger employers, this federal facility recently extended maximum loan terms to help bridge longer periods of uncertainty.
- Duties Relief and Drawback Programs: Allow qualifying importers and exporters to avoid or recover duties paid on affected goods.
Most federal programs require a separate application from provincial ones, and businesses generally cannot apply to multiple overlapping streams at once.
Sector-Specific Considerations
Some industries face sharper exposure than others:
- Steel and aluminum: Ontario is home to major producers and a supply chain employing an estimated 16,500 workers, making this sector a priority for targeted support.
- Automotive: Deep integration with U.S. manufacturing means suppliers on both sides of the border can be affected simultaneously.
- Manufacturing broadly: Many manufacturers can also access tax-credit tools alongside direct loan or grant programs.
If your business sits in one of these sectors, program administrators often prioritize applications tied to demonstrated liquidity needs or trade disruption.
How to Choose the Right Program
Before applying, it helps to ask:
- Do I need immediate cash flow relief, or funding for longer-term structural change?
- Is my business eligible based on location, sector, and incorporation history?
- Can I realistically manage a repayable loan, or is non-repayable funding a better fit?
Reviewing financing options carefully matters just as much for tariff relief as it does for other major purchases — the same due-diligence approach used when comparing loan terms for a vehicle purchase applies here.
Final Thoughts
Ontario’s tariff relief landscape is moving quickly, with new measures introduced and expanded throughout 2026. Businesses affected by U.S. tariffs have more options now than a year ago, spanning liquidity loans, non-repayable grants, and tax tools. Because eligibility and funding levels can shift with little notice, it’s worth checking program pages directly before applying and revisiting this guide periodically for updates.
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