New Federal Aid Program Announced to Support Canadian Business

Cornwall Ontario –  The Federal Government has announced over $6 billion in programs aimed to support Canadian businesses. The move is in response to tariffs recently imposed on Canada by the United Sates, disrupting a successful trading partnership and raising costs for Americans and Canadians alike.

The following are the first steps of new measures to protect Canadian businesses and workers through this turbulent time:

• Trade Impact Program: Delivered through Export Development Canada, the program will deploy $5 billion over two years, starting this year, to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion.
• Debt Financing: $500 million in favourably priced loans will be made available through the Business Development Bank of Canada to support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains. Businesses will also benefit from advisory services in areas such as financial management and market diversification.
• Agriculture & Food Financing: $1 billion in new financing will be available through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry. This lending offer will help address cash flow challenges so that businesses can adjust to a new operating environment and continue to supply the high-quality agricultural and food products that Canadians rely on.

The federal government also updated the Investment Canada Act Guidelines to protect Canadian companies from harmful takeovers at a time when the Canadian economy is facing unprecedented challenges.

Along with supporting businesses, The federal government is also introducing temporary flexibilities to the EI Work-Sharing Program to increase access and maximum agreement duration. The Work-Sharing Program provides EI benefits to employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employer’s control. This helps employers retain experienced workers and avoid layoffs and helps workers maintain their employment and skills while supplementing the reduced wages with EI benefits.

“We are deeply committed to supporting Canadian businesses and workers in the face of the unjustified and unreasonable tariffs the United States has imposed on Canadian goods,” said Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs. “We have faced economic challenges before, and we know we will overcome this new challenge. The measures announced today as part of our Team Canada response will protect jobs, keep businesses open, and help stabilize Canada’s economy.”

In the weeks and months ahead, additional measures will be brought forward to support businesses and workers as needed. The federal government will continue to work closely with provinces and territories to ensure complementary supports are in place across all jurisdictions.