Initiative includes support through loans covering expenses such as payroll, leases, utilities
The Ontario government has rolled out a Protect Ontario Financing Program, a $1-billion initiative aimed at supporting local businesses in the steel, aluminum, and automotive sectors that are grappling with the fallout from heightened U.S. tariffs.
This program marks the first phase of the broader $5-billion Protecting Ontario Account, a centerpiece of the 2025 provincial budget.
Finance Minister Peter Bethlenfalvy emphasized the government’s determination to safeguard jobs and critical supply chains amid ongoing economic turbulence.
“Our government is leaving no stone unturned in our efforts to protect workers and businesses from the economic challenges facing Ontario,” he stated.
He described the new financing program as a crucial tool to keep Ontarians employed and to fortify the province’s economic resilience for the future.
The federal government has extended a temporary Employment Insurance (EI) measure to support workers affected by U.S. tariffs.
The program will offer up to $1 billion in liquidity support through loans, helping businesses cover essential expenses such as payroll, leases, and utilities.
Companies that qualify will undergo a thorough assessment process to ensure responsible use of taxpayer funds. The intent is to help businesses avoid layoffs and closures, while also maintaining the integrity of Ontario’s supply chains during a period of trade uncertainty.
Vic Fedeli, Minister of Economic Development, Job Creation and Trade, highlighted the unprecedented challenges facing Ontario’s industrial sectors due to U.S. tariffs.
“Our government will provide $1 billion in critical relief to protect workers and businesses at the front lines of our economy,” he said, underscoring the program’s role in helping industries withstand current pressures and prepare for future opportunities.
Ontario businesses interested in the program can access a new government website to review eligibility criteria and complete an online tool to determine their suitability for support. Those who pass the initial screening will be contacted for further steps, and a third-party financial agent will be engaged to process applications efficiently.
For more information or to begin the application process, businesses are encouraged to visit the program’s website or contact the province directly at [email protected].
The Protect Ontario Financing Program is designed for for-profit businesses operating in Ontario’s steel, aluminum, and auto sectors that have been directly impacted by U.S. Section 232 tariffs. To qualify, companies must:
Loans start at $250,000, with terms up to six years and no prepayment penalties. In some cases, repayment may be interest-only for up to a year, and the province may set interest rates at or below market prime. Applicants must show they can meet repayment obligations and provide satisfactory security.
Businesses can combine this provincial support with federal programs, such as those offered by Export Development Canada and the Business Development Bank of Canada, but not with new provincial funding for separate projects.
Ontario is Canada’s leading province for manufacturing vital industrial materials, with the steel sector alone supporting 16,500 jobs. The province’s manufacturing and supply chains are closely linked with the U.S., making them particularly vulnerable to American trade measures.
The government notes that U.S. tariffs have already forced some companies to scale back hiring, investment, and production, putting jobs and business survival at risk.
The Protect Ontario Financing Program is part of a broader provincial strategy to ensure that Ontario’s economy remains robust and adaptable in the face of international trade challenges. The Ministry of Economic Development, Job Creation and Trade continues to champion policies that support innovation, job creation, and prosperity for all Ontarians.
