FTR Now
Ontario Launches the Protect Ontario Financial Program with $1 Billion in Support to Sectors Impacted by Ongoing Tariff Disputes
Date: August 14, 2025
On August 13, 2025, the Ontario government launched the Protect Ontario Financial Program (the “Program”), which is the first phase of the $5 billion Protecting Ontario Account that was announced in the 2025 provincial Budget. The Program will provide up to $1 billion in liquidity support (in the form of term loans) to businesses that are subject to section 232 tariffs, which include the steel, aluminium and auto sectors.
Background
Section 232 of the Trade Expansion Act authorizes the U.S. President to impose restrictions on goods from other countries if those imports are deemed to threaten national security. This can be done through tariffs or other means.
In exercising its authority under section 232, the U.S. has implemented tariffs on Canadian steel, aluminum and auto materials. This has created significant operational and financial pressures for Canadian businesses, resulting from loss of sales, shrinking margins, reduced production, reduced investments, among other things. This strain directly impacts workforces and for some, may threaten business survival.
In response, Ontario has launched the Program, which will provide eligible Ontario-based businesses with up to $1 billion in liquidity support to protect workers and operations against the impact of section 232 tariffs.
Program Details
The Program supports for-profit businesses (legal entity or limited partnership) that are registered to carry out business in Ontario. To be eligible to receive funding support under the Program, organizations must meet all of the following requirements:
- operate within the province of Ontario
- operate within or support the supply chain of sectors subject to section 232 tariffs (steel, aluminum, autos)
- generate at least $2 million in annual revenue
- employ at least ten full-time employees in Ontario
- maintain a minimum three years of operations with financial statements
- face material working capital challenges due to section 232 U.S. tariff imposition (such as difficulty meeting short-term financial obligations including payroll)
- have explored and exhausted or faced significant barriers in accessing federally offered financial support options for working capital
Excluded Organizations and Uses
The Program specifically excludes not-for-profit organizations, associations, charities, and start-up companies that are in early development stages without established sales or operations track records.
Moreover, funding under the Program cannot be used for non-working capital costs such as property purchases, new equipment acquisition, refinancing existing business lending facilities, acquisitions or buyouts, or relocating to other jurisdictions (including within Ontario).
Funding Structure and Terms
The Program will provide funding through term loans to support working capital costs, which include but are not necessarily limited to payroll, leases, utilities.
The parameters of funding (loan amounts) under the Program include the following:
- minimum loan amount of $250,000 to support working capital needs
- repayment period of up to 72 months (six years)
- no penalty for prepayment
- annual repayment frequency
- requirement that applicants demonstrate repayment ability and provide security satisfactory to the province
At the province’s discretion, loan parameters may include interest-bearing loans up to market prime rate and potential for loan repayments to be principal-free for up to 12 months.
Restrictions on Combining Funding with Other Support Programs
Businesses will be permitted to combine (“stack”) funding received under the Program with other provincial business support programs if funding was previously approved and an existing active project exists. Stacking will not be permitted for businesses seeking funding for new projects from other provincial business support programs.
Businesses will also be permitted to stack funding with other federal funding support programs, including the Export Development Canada’s Tariff Impact Program, the Business Development Bank of Canada’s Pivot to Grow Program, and the Large Enterprise Tariff Loan Facility.
Act Quickly
Businesses in the affected sectors can assess their qualification status through the online eligibility tool immediately and begin preparing comprehensive financial documentation to demonstrate tariff-related impacts.
Given the Program’s coordination with federal supports and finite funding allocation, businesses should also explore all available federally offered financial support (which is a requirement for eligibility) and upon exhausting these options, act quickly to position themselves for consideration for funding under this Program.
For advice on the new Protect Ontario Financing Program and how we can assist, please contact your regular Hicks Morley lawyer.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Hicks Morley Hamilton Stewart Storie LLP and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Hicks Morley Hamilton Stewart Storie LLP. ©