New financing program supports Ontario businesses impacted by U.S. tariffs

Ontario launches $1 billion financing program to support businesses affected by U.S. tariffs

Ontario’s steel, aluminum and auto sectors are facing increased pressure from unfair tariffs imposed by the United States. In response, the provincial government has announced a major new funding initiative – the Protect Ontario Financing Program – designed to provide urgent working capital support for businesses operating in these key industries.

What is the Protect Ontario Financing Program?

The Protect Ontario Financing Program is the first phase of the $5 billion Protecting Ontario Account, introduced in the 2025 Ontario Budget. This $1 billion loan-based funding stream is targeted at Ontario businesses dealing with the financial fallout from increased Section 232 tariffs, which have led to strained operating budgets and supply chain disruptions across the province.

What does the program offer?

The program provides eligible Ontario-based businesses with term loans starting at $250,000 to help cover essential working capital needs, including:

• Payroll
• Lease payments
• Utility bills

Loans are repayable over a period of up to 72 months (6 years), with the following standard terms:

• No penalty for early repayment
• Annual repayment schedule
• Applicant must demonstrate repayment ability and provide acceptable security

At the province’s discretion, additional loan features may include:

• Interest-bearing terms up to the market prime rate
• Option for principal-only deferral for up to 12 months

Businesses may also “stack” this support with other provincial funding programs if they already have an active project in place.

Eligibility

To qualify for support, businesses must:

• Be a for-profit entity registered to carry out business in Ontario.
• Operate in or support the steel, aluminum or automotive sectors.
• Have annual revenues of at least $2 million.
• Employ a minimum of 10 full-time staff in Ontario.
• Provide at least three years of operational and financial history.
• Be able to demonstrate liquidity challenges directly tied to s.232 tariffs.
• Have attempted to access federal funding supports and faced barriers.

Please note that non-profits, early-stage startups and businesses looking to refinance or relocate operations are not eligible for this program.

Need help applying?

If you’re unsure if your business qualifies or would like a hand preparing your application, Baker Tilly can help assess your eligibility, gather required documentation and guide you through the process.