Ontario is rolling out a $1 billion loan program to provide emergency funding to businesses that have been hard-hit by U.S. tariffs.
Finance Minister Peter Bethlenfalvy unveiled the $1 billion Protect Ontario Financing Program at a press conference held in Queen’s Park this week, emphasizing that the fund will support struggling industries, including the province’s steel, aluminum, and automotive sectors.
“We know businesses are facing tremendous uncertainty, and we will continue to protect Ontario’s workers, businesses, and jobs from the impacts of U.S. tariffs,” Bethlenfalvy said at an Aug. 13 press conference, noting that the funding will keep workers on the job to build “a more resilient and self-reliant economy.”
U.S. President Donald Trump slapped a 50 percent tariff on steel and aluminum, and a 25 percent tariff on car parts that are not compliant with the United States-Mexico-Canada Agreement this spring. He also increased the tariff rate to 35 percent at the beginning of this month on all other Canadian goods that are not covered by the free trade deal.
Ontario’s fund serves as a “key part” of the provincial government’s Protecting Ontario Account, a $5 billion tariff-related support package designed to alleviate the economic repercussions of the trade conflict with the United States, Bethlenfalvy said. The program was announced in the Ontario budget earlier this year.
Ontario Economic Development Minister Vic Fedeli said businesses eligible for the program will be able “to operate, to grow, and to thrive” with the provincial loans.
“While we can’t control the unrelenting determination with which President Trump is pursuing these tariffs, our government can and will continue to stand firm in our unyielding commitment to our workers and our economy,” he said.
Businesses must have a minimum of 10 employees, along with a minimum of $2 million in annual revenue, to be eligible for loans ranging from $250,000 up to $40 million, the finance minister said.
He noted that the money can be used for a number of financial challenges such as meeting payroll obligations, paying leases, or making utility payments.
Bethlenfalvy also stressed that the program is specifically designed to help businesses that have already exhausted all federal funding for tariffs support.
The province is launching a website to help businesses determine if they are eligible for a loan under the Ontario program. The provincial loans will be repayable for up to 72 months and have the potential to be principal-free for up to 12 months.
