Ontario Unveils Protect Ontario Financing Program to Support Tariff-Impacted Businesses
In response to the economic challenges posed by U.S. tariffs, the Ontario government has launched the Protect Ontario Financing Program, a critical initiative designed to assist businesses grappling with financial strain.
The program specifically targets Ontario’s steel, aluminum, and automotive sectors, which have been disproportionately affected by tariffs imposed under Section 232 of the U.S. Trade Expansion Act. These industries are pivotal to the province’s economy and supply chains.
Program Purpose and Scope
The initiative aims to provide liquidity support to businesses facing working capital challenges due to tariff impacts. By addressing essential expenses like payroll, lease payments, and utilities, the program seeks to prevent closures, layoffs, and supply chain disruptions.
As the first phase of the broader $5 billion Protecting Ontario Account introduced in the 2025 Budget, the program allocates up to $1 billion in loans to eligible businesses. Loans range from a minimum of $250,000, with repayment terms extending up to six years (72 months).
Eligibility and Funding Details
To qualify, businesses must meet specific criteria. Applicants must be for-profit entities operating in Ontario, directly involved in or supporting the supply chains of the steel, aluminum, or automotive sectors. They must also generate at least $2 million in annual revenue and employ a minimum of 10 full-time workers in the province.
Additionally, businesses must demonstrate three years of operational history and face material working capital challenges tied to tariff impacts. They must also have explored or exhausted federal financial assistance programs before applying.
Notably, the program excludes start-ups, not-for-profit organizations, associations, and charities. Funds cannot be used for property acquisition, equipment purchases, refinancing existing loans, or business relocations.
Application and Assessment Process
Interested businesses can begin by completing an online eligibility tool. Those meeting initial criteria will receive application instructions. Submissions undergo a rigorous review and due diligence process conducted by a third-party financial agent to ensure responsible fund use.
Alignment with Federal Initiatives
The program requires applicants to have first sought relief through federal tariff programs, such as the Export Development Canada Tariff Impact Program or the Business Development Bank of Canada’s Pivot to Grow Program.
However, the Canadian Federation of Independent Business has pointed out that the program’s eligibility thresholds, particularly the revenue and loan size requirements, may favor larger businesses over smaller enterprises.
With applications now open, the Protect Ontario Financing Program represents a significant provincial effort to mitigate the economic fallout of international trade tensions, aiming to stabilize key industries and safeguard jobs across Ontario.
Program Status and Contacts
The Protect Ontario Financing Program is currently open for applications, providing immediate support to eligible businesses affected by the tariffs. For businesses seeking more information or assistance with the application process, the program administrator can be contacted directly via email.
Complementing Federal Initiatives
The program is designed to work in conjunction with federal tariff relief programs, such as the Export Development Canada Tariff Impact Program and the Business Development Bank of Canada’s Pivot to Grow Program. This ensures a comprehensive approach to addressing the financial challenges posed by the tariffs.
However, it’s important to note that the program’s eligibility criteria, including the revenue and loan size requirements, may present challenges for smaller businesses. The Canadian Federation of Independent Business has highlighted that these thresholds may favor larger companies, potentially limiting access for smaller enterprises.
Conclusion
The Protect Ontario Financing Program offers a vital lifeline for businesses impacted by tariffs, providing immediate financial support to help navigate these challenging economic conditions. By complementing federal initiatives, the program ensures a robust safety net for eligible businesses. However, smaller enterprises may face hurdles due to specific eligibility requirements. Businesses are encouraged to review the criteria carefully and reach out to program administrators for guidance to determine if this opportunity aligns with their needs.
Frequently Asked Questions
What is the current status of the Protect Ontario Financing Program?
The program is currently open for applications, offering immediate support to eligible businesses affected by tariffs.
How can businesses apply for the Protect Ontario Financing Program?
Eligible businesses can apply directly through the program administrator, who is available to assist with the application process via email.
Does the program work alongside federal tariff relief initiatives?
Yes, the program is designed to complement federal programs such as the Export Development Canada Tariff Impact Program and the Business Development Bank of Canada’s Pivot to Grow Program.
Is the program accessible to smaller businesses?
While the program is open to all eligible businesses, smaller enterprises may face challenges due to revenue and loan size requirements, which may favor larger companies.
Where can businesses get help with the application process?
Businesses can contact the program administrator directly via email for assistance with the application process.
