Canadian businesses continue to navigate a changing trade environment as U.S. tariffs create new pressures on costs, supply chains, investment decisions and market access.
To help businesses and workers respond, the Government of Canada recently announced a $7.5 billion package of new and enhanced measures, building on nearly $25 billion in previously introduced supports. The latest measures place particular emphasis on businesses affected by tariffs, including small and medium-sized enterprises.
For businesses in Kingston and across the region, understanding the resources available can be an important part of assessing risk, managing short-term pressures and planning for the months ahead.
Regional Tariff Response Initiative
Beginning in September 2026, the federal government is providing an additional $1.5 billion through the Regional Tariff Response Initiative (RTRI), delivered through Canada's regional development agencies.
The initiative is designed to help small and medium-sized businesses respond to tariff-related pressures. The maximum non-repayable contribution is increasing from $1 million to $3 million, with support now extending to demonstrated liquidity needs as well as eligible business pivot and capital investment plans. Liquidity support of up to $2 million will also be available.
For businesses in Southern Ontario, the initiative is delivered through FedDev Ontario.
BDC Pivot to Grow
Businesses experiencing immediate cash-flow challenges as a result of U.S. tariffs may also have access to expanded support through the Business Development Bank of Canada.
A new $500 million liquidity stream is being introduced through BDC's Pivot to Grow program. Eligible businesses directly affected by tariffs, regardless of sector, may qualify for loans ranging from $250,000 to $5 million, with interest-only payments available for 36 months.
The annual revenue threshold for BDC's direct tariff-related support programs is also being reduced to $1 million, broadening access for smaller businesses.
Canada Strong Diversification Fund
The federal government has also created the Canada Strong Diversification Fund, supported by an additional $2 billion.
The fund is intended to help tariff-affected businesses advance shovel-ready projects, including investments related to ongoing capital maintenance. The government has indicated that a streamlined review and approval process will be used to help eligible projects move forward more quickly.
Support for Employers and Workers
The package includes $3.5 billion in Rapid Response Supports for Workers and Employers.
For employers, a new Workforce Retention and Retraining Program will bring together the existing EI Work-Sharing program and Worker Retention Grant. The program is intended to help businesses retain employees during periods of reduced activity while creating opportunities for training and retraining.
Eligible employers will also be able to access up to $1,000 per participant to help cover training and administrative costs.
For workers, temporary Employment Insurance measures are also being extended or enhanced, including the waiver of the one-week waiting period and additional support for some long-tenured workers.
Support for Large Businesses
Larger Canadian employers affected by tariffs may benefit from changes to the Large Enterprise Tariff Loan facility.
The $10 billion facility is being adjusted to provide greater flexibility, including increasing available liquidity support from 24 to 36 months of company liquidity needs and extending the maximum loan term from 10 to 15 years.
Additional Resources for Businesses
Beyond these measures, the Government of Canada maintains additional resources for employers, importers and exporters affected by tariffs. These include tariff remission requests, the Duties Relief Program, support for Canadian exporters, resources for businesses looking to enter new markets, and the Business Benefits Finder.
Stay Informed and Explore Available Support
The Greater Kingston Chamber of Commerce encourages businesses that may be affected by tariffs to review the available programs and determine which resources may apply to their individual circumstances.
Eligibility requirements, application processes and program availability vary. Businesses should consult the official Government of Canada resources for the latest information before making financial or operational decisions.
Learn more about federal support for Canadian workers and businesses affected by U.S. tariffs:
Government of Canada: Support for Canadian workers and businesses affected by U.S. tariffs