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20 Aug

Ontario Business Tariff Loan Unvail $1B Loan Program for Businesses

General

Posted by: Michael Greene

A Big Boost for Ontario Businesses

Ontario’s manufacturing sector is getting a much-needed lifeline.

Premier Doug Ford has announced a $1 billion emergency loan program to help companies in the auto, steel, and aluminum industries. These businesses have been hit hard by U.S. tariffs.

This is the first step in the province’s $5 billion Protect Ontario Account, which is designed to save jobs, keep businesses running, and protect supply chains.

Who Can Apply

The program is for businesses directly impacted by U.S. tariffs. To qualify, companies must:

  • Be located in Ontario

  • Have at least 10 employees

  • Earn at least $2 million a year

  • Have operated for 3+ years with financial statements

  • Have already used any federal tariff support available

Not eligible: start-ups, non-profits, or companies using funds to buy property or new equipment.

Loan Details

Businesses can apply for loans between $250,000 and $40 million.

The money can be used for:

  • Paying staff

  • Rent or lease payments

  • Utilities

  • Other key operating costs

Loans must be repaid within six years. The first year can be principal-free. Interest may be charged up to the prime rate.

A new provincial website will handle applications. A third-party financial agent will process them quickly.

Why This Matters

Small and mid-sized companies in auto, steel, and aluminum are taking the hardest hit from U.S. tariffs.

This program aims to:

  • Save jobs

  • Prevent closures

  • Protect supply chains

Some say the $1 billion fund isn’t enough. NDP MPP Jessica Bell has called for a bigger, long-term investment plan.

The Bigger Picture

The U.S. recently increased tariffs on Canadian imports:

  • Steel and aluminum: up to 50%

  • Certain auto goods: 35%

Economists warn this could slow the economy and raise unemployment in both countries.

Ontario’s loan program is meant to soften the blow and help industries recover once the trade dispute ends.

Bottom Line:
If your business is affected by U.S. tariffs, this program could help you stay afloat. Check the eligibility rules and apply now.