OTTAWA - The government is introducing a $7.5 billion package of new and enhanced measures to protect Canadian workers and businesses, building on the nearly $25 billion in supports the government has implemented over the past 18 months. This targeted and proportionate package focuses on workers and businesses, particularly small and medium-sized enterprises, in sectors most affected by the new tariffs announced by the United States.
Regional Tariff Response Initiative
Effective September 2026, the government will bolster the Regional Tariff Response Initiative delivered by Canada's seven Regional Development Agencies by $1.5 billion. This will help small and medium-sized enterprises respond to tariff pressures.
- The cap on non-repayable contributions will be increased from $1 million to $3 million, which will now include support for demonstrated liquidity needs in addition to existing support for pivot or capital investment plans.
- Liquidity support available will be up to $2 million.
Business Development Bank of Canada (BDC)
The government will introduce a second $500 million liquidity stream through BDC's Pivot to Grow program, to provide working capital to businesses facing cash-flow shortfalls as a result of U.S. tariffs. This new liquidity stream will be added to provide working capital support for small and medium-sized businesses facing immediate cashflow pressures.
- This program will be available to companies directly impacted by tariffs, regardless of sector.
- Companies will be eligible for loans ranging from $250,000 to $5 million. Interest only-payments over 36 months.
- The application process will be simplified.
Eligibility for BDC's direct tariff-related support programs will be expanded by lowering annual revenue requirements for applicants to $1 million. This includes Pivot to Grow as well as targeted support programs for the steel, aluminum and forestry sectors.
Canada Strong Diversification Fund
Effective immediately, the government is creating the Canada Strong Diversification Fund—a new stream of the Strategic Response Fund (SRF). With an additional $2 billion in funding, this Fund will have expanded flexibility to support tariff-impacted companies with shovel-ready projects that support ongoing capital maintenance, including medium-sized firms.
This new initiative will work closely with Regional Development Agency programming for project intake and triage. A fast-track, one-step project review and approval process will also be implemented to get projects moving faster.
Rapid Response Supports for Workers and Employers
The government is introducing a new suite of $3.5 billion Rapid Response Supports for Workers and Employers to help Canadians affected by tariffs.
Workers
This will enable workers to access income support when they need it by:
- Extending by one year the temporary Employment Insurance (EI) measure to waive the 1-week waiting period.
- Extending by one year the temporary EI measure that allows workers to receive EI benefits without first using up their separation payments (such as severance or vacation pay).
- Extending by 8 months the temporary EI measure that provides an extra 20 weeks of EI regular benefits for long-tenured workers.
- Introducing a new temporary measure for one year so that workers who have voluntarily left jobs in recent months are no longer penalized when they want to access EI, as long as their most recent job loss is through no fault of their own.
This will also help them move quickly into new opportunities by:
- Increasing supports to match workers with jobs on JobBank.gc.ca, including highlighting opportunities made available through investments in major projects, Build Canada Homes, and defence procurement.
Employers
This will also assist employers in keeping their workforce through a difficult period.
- A new Workforce Retention and Retraining Program will be established, combining the existing EI Work-Sharing program and Worker Retention Grant into a single, streamlined program designed to be more accessible and generous.
- Under this single-offering, new and existing Work-Sharing flexibilities will be supported and employers will be eligible for additional funds to cover training and administrative costs (up to $1,000 per participant).
Large Enterprise Tariff Loan (LETL) facility
The government is providing new flexibilities to the $10 billion Large Enterprise Tariff Loan facility, administered by the Canada Enterprise Emergency Funding Corporation (CEEFC) to provide the flexible liquidity needed to bridge large employers through this period of uncertainty, by:
- increasing the size of liquidity supports from 24 to 36 months of company liquidity needs; and,
- increasing the maximum loan term from 10 to 15 years.