Regional Tariff Response Initiative in southern Ontario

Description

Response Initiative (RTRI), delivered by Canada’s regional development agencies (RDAs), is part of the broader Government of Canada tariff response plan that includes $6.5 billion in new measures to protect Canadian businesses and workers. The $450-million RTRI helps businesses overcome trade disruptions and includes support for businesses in the steel and automotive industries. It invests in targeted, time-sensitive activities that boost productivity, lower costs, strengthen supply chain resilience, and open doors to new markets, enhancing overall competitiveness. RTRI is intended to support businesses and sectors impacted by tariffs.

1. Who can apply?

1. Eligible applicants

To be eligible, your organization must:

• Be an incorporated not-for-profit organization in southern Ontario whose primary focus is to support businesses and/or community economic development.
• Support businesses with at least 25% of sales in the markets targeted by the tariffs.
  OR
• Support businesses that can demonstrate a significant likelihood of being affected by tariffs or the uncertainty they may create. This could be demonstrated by:
  • Increased cost for the purchase of production materials
  • Increased costs from suppliers
  • Increased retail cost of finished product
  • Reduced purchase orders or sales
  • Addition of an import or export tax
  • Loss of market access
  • Other evidence provided by the applicant demonstrating that the business has been impacted

Thinking about applying?

• Determine if you are eligible by completing the online self-screening tool.
• Indigenous applicants may contact us at indigenous-autochtones@feddevontario.gc.ca with any questions about your application.

2. Eligible activities

FedDev Ontario will give priority to commercial projects, including projects with businesses in the steel and automotive industries, to overcome trade disruptions.

Projects providing services directly to businesses may be prioritized under this program.

Please note if you have an active project with FedDev Ontario, an application for RTRI must be distinct and separate. Your organization can only submit one application to FedDev Ontario at a time, across open programs. Multiple applications to any programs will not be accepted.

Eligible activities include, but are not limited to:

• Supporting digitization, technology adoption and automation to enhance productivity and competitiveness.
• Providing business services and guidance such as market intelligence, development and expansion to help businesses find new customers and reduce tariff exposure.
• Supporting market diversification for businesses by strengthening domestic supply chains and facilitating internal trade to enhance the resilience and reliability of domestic markets.
• Supporting businesses to reshore or onshore production, research and development mandates and/or highly qualified personnel/expertise to southern Ontario. This includes both new activities and activities previously conducted outside Canada that are being brought to the region as a result of this initiative.
• Facilitating strategic partnerships, strengthening supply chain networks, and promoting compliance with standards to help businesses grow in domestic and global markets.

 

2. How funding works

Funding is project-based and must result in incremental and measurable outcomes and add value to the existing activities already being undertaken by the applicant. Key funding parameters of the RTRI are:

Parameter	Not-for-profit organizations
Funding amounts	Applicants can normally request a minimum of $125,000 up to a maximum of $10 million per project in non-repayable contribution funding.
Matching requirement (cost sharing)	Eligible project costs are shared between FedDev Ontario and the applicant as follows: FedDev Ontario – normally up to a maximum of 90% Applicant – a minimum of 10% Your source of funding (i.e., 10% or more of eligible project costs) may be comprised of cash contribution and in-kind contribution from other project partners (e.g., industry partners, other government funding, etc.). If a project is approved, you will be expected to confirm all sources of the matching funding (e.g., bank statements, term sheets, letters of conditional funding, and other government funding) within 30 days. Total government assistance (federal, provincial and municipal) cannot exceed 100% of total eligible project costs. Preference may be given to projects that maximize funding from multiple other sources. If you have an active application to the provincial Trade-Impacted Communities Program as part of your matched funding, evidence of this application must be included.
Eligible costs	New costs essential to the project and related directly to carrying out activities listed above.
Ineligible costs	Costs deemed unreasonable, non-incremental and/or not directly related to project activities, for example: land and building acquisition, entertainment expenses, motor vehicle costs, refinancing of existing debts and more.
Project time frame	Projects must be completed by no later than March 31, 2028.

*Refer to the Application Guide for further details on the information listed above.

Key funding conditions

• An application does not constitute a commitment from FedDev Ontario for financial assistance.
• The contribution amount is subject to availability of funding, and FedDev Ontario reserves the right to make the final determination on the value of the contribution.
• FedDev Ontario's funding contribution is based on a number of factors, including:
  • the minimum amount required for the project to proceed;
  • the elements of project activities selected for funding, and
  • the extent to which other available funding sources have been leveraged.
• If a project is approved, you will be expected to confirm all sources of the matching funding and sign a contribution agreement within 30 calendar days of being notified.
• Funding will be reimbursed based on approved costs incurred and claimed throughout the project's duration.

3. How projects are assessed

Projects are assessed based on the information provided by applicants. Although FedDev Ontario may engage applicants directly on outstanding questions or issues, applicants are advised to submit a complete and thorough application, including all mandatory attachments. Failure to do so may result in your application not being assessed.

Assessment criteria

To be considered for funding, you must first meet all eligibility requirements listed in Section 1: Who can Apply.
Complete applications are reviewed and assessed based on multiple criteria, including:

• Degree to which the project supports businesses and/or sectors impacted by tariffs
• Degree to which the project helps companies boost productivity, catalyze growth, and/or diversify markets through new or expanding initiatives
• Expected results of the project
• Quality of the project plan and budget, including feasibility, appropriateness, capacity to undertake the project risk (financial, commercial, technical), and mitigation strategies
• Degree to which the project supports new or expanded initiatives for your organization (i.e., incrementality of the project)
• Sustainability of your organization beyond project completion
• Financial resources from project partners

In addition to the quality of your application, FedDev Ontario reserves the right to base funding decisions on the breadth, representation and diversity of its projects.

Applicants will also be assessed for their compliance with applicable legislation and regulatory requirements. Refer to the Application Guide for not-for-profit applicants for details.

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