Regional Tariff Response Initiative (RTRI) 2026: up to $3 million non-repayable for tariff-hit businesses

Who is eligible for the Regional Tariff Response Initiative?

An incorporated for-profit business with at least $1,000,000 in annual revenue that can show tariff damage is eligible. Every agency lists the same tests. Your business must:

• be an incorporated for-profit business located and operating in the agency’s region;
• have at least $1,000,000 in annual revenue in one or both of its last two fiscal years;
• have been viable before tariffs (CED and FedNor put the date at March 21, 2025; CED, CanNor and FedDev Ontario say businesses established after that date may be considered case by case if tariffs imposed since RTRI launched have hurt them).

You must also show you have been affected by ongoing trade disruptions, including U.S. tariffs, Canadian countermeasures or countervailing duties (CED’s page also names China tariffs). The agencies give three ways to show it:

• you operate in a sector hit by Section 338 or Section 232 tariffs, including indirect exposure as a supply-chain partner to an affected exporter, or in another tariff-impacted sector;
• at least 25% of your revenue comes from goods that are ultimately exported to the U.S.; or
• you have had significant cost increases because tariffs raised the price of goods and materials you need for production, supply chain disruption, or lost revenue or customers.

Not-for-profit organizations whose primary focus is supporting businesses can apply for projects that help tariff-hit businesses, but not for liquidity support. ACOA adds that eligible businesses are normally manufacturers, suppliers and value-added businesses, and that restaurants and retailers selling directly to end consumers are not eligible.

How much can you get from RTRI?

Up to $3,000,000 non-repayable, or $20,000,000 in total, across two streams.

Liquidity assistance

Liquidity assistance is short-term, non-repayable support to keep Canadian operations and jobs going. It pays up to $2,000,000, up to 50% of eligible costs, for up to 12 months ending no later than March 31, 2028. The agencies say the amount is based mainly on 50% of your average monthly payroll for up to 12 months, and will not exceed your demonstrated need or $2,000,000, whichever is less. As an illustration only: a business with a $150,000 monthly payroll would reach $900,000 on the payroll test (50% of $150,000 for 12 months), and would receive less if its cash-flow forecast shows a smaller shortfall.

Pivot projects

Pivot projects fund work that improves productivity, competitiveness and resilience to future trade disruptions. Up to $1,000,000 can be non-repayable, covering up to 50% of project costs, where the project shows local or regional economic benefits. Larger projects over $1,000,000 are repayable, covering up to 75% of costs.

Is RTRI a loan or a grant?

RTRI is partly non-repayable and partly repayable, depending on the stream and size. Liquidity assistance and pivot projects up to $1,000,000 are non-repayable contributions, which work like a grant: you do not pay them back if you meet the agreement’s terms. Pivot projects over $1,000,000 are repayable contributions. The agencies state they are interest-free, and the repayment schedule is set out in your contribution agreement.

Which regional development agency handles your application?

You apply to the agency for the region where your business is located and operating. The funding terms above are the same on all seven agency pages; what differs is how you submit.

If you received RTRI funding before the September 2026 expansion, you may still qualify for the new liquidity support. The agencies ask existing recipients to contact their project officer.

What costs does RTRI cover?

Liquidity assistance covers payroll and essential operating costs; pivot projects cover new, additional costs of becoming more competitive. Eligible liquidity costs are employee salaries and wages, plus essential recurring operating expenses: rent or commercial lease payments, utilities, business insurance and property taxes. Eligible pivot activities include:

• productivity improvements and process modernization;
• equipment and technology adoption, including automation and digitization;
• market diversification and export development;
• supply chain resilience; and
• other activities that increase competitiveness and reduce trade-related risks.

Project start dates may be up to 12 months before you apply. Costs that are unreasonable, non-incremental or unrelated to the project are ineligible; the agencies name land and building acquisition, entertainment, motor vehicles and refinancing debt.

How do you apply for RTRI?

You apply directly to your regional development agency, using its own portal or form. The general sequence:

1. Confirm the three gates. Incorporated for-profit, at least $1,000,000 in revenue in one of the last two fiscal years, and documented tariff impact.
2. Decide what you are asking for. Liquidity only, a pivot project only, or both. You do not need a pivot project to get liquidity support.
3. Gather documents. The agencies ask for corporate information and a business profile, financial statements for the past two years, evidence of tariff impacts such as export sales information, and details of other government funding. For liquidity, add payroll records, a cash-flow forecast showing your need, employment retention targets and operational obligations.
4. Check your agency’s extra requirements. FedDev Ontario wants externally prepared financial statements. PrairiesCan wants six months of interim statements and proof of the funding for your share (forecast revenue, receivables, promised equity or bank financing, and SR&ED receivables do not count). PacifiCan asks liquidity applicants for 12 months of payroll records.
5. Submit, then sign. If approved, you sign a contribution agreement. FedDev Ontario notes it will then ask for documents on insurance, conflict of interest, financial management, expenditures and reporting.

Liquidity support comes with conditions: you attest it will keep Canadian operations and jobs going, and you report employment and payroll during and after the project. FedDev Ontario adds that recipients cannot pay dividends while receiving it.

What gets RTRI applications rejected?

Most rejections come from failing a gate or sending an incomplete file:

• Revenue under $1,000,000 in both of the last two fiscal years.
• No demonstrable tariff exposure. Businesses that cannot show direct or indirect exposure are listed as ineligible.
• Wrong business type. Unincorporated businesses do not meet the test, and ACOA excludes restaurants and retailers selling to consumers.
• Incomplete applications. PacifiCan says liquidity applications without all required documents cannot be processed, and PrairiesCan will not assess incomplete or unsubmitted applications.
• Unconfirmed funding for your share at PrairiesCan, which asks for bank statements, letters of intent or signed term sheets.

Can you combine RTRI with other funding?

Yes, RTRI can be combined with other federal, provincial, territorial or municipal programs, provided the same costs are not funded twice. You must disclose all government assistance you have received or requested, and liquidity support may be reduced to account for it. For liquidity assistance, costs already reimbursed through another government wage or operating support program cannot be claimed again. For export-focused work, compare CanExport SMEs; for financing your share of a project, see the BDC Pivot to Grow loan record.

Frequently asked questions about RTRI

Where to go next

Sources: the ISED RTRI page (modified August 28, 2026) and the RTRI pages and FAQs of ACOA, CED, CanNor, FedNor, FedDev Ontario, PrairiesCan and PacifiCan, all checked September 30, 2026. Confirm current terms with your agency before you apply. GrantCompass is an independent funding database, not a government office or the program’s administrator. Some features are paid.