FedDev Ontario relaunched the Regional Tariff Response Initiative (RTRI) for southern Ontario in September 2026 with a different design from the original. There are now two kinds of support for businesses: Liquidity Assistance of up to $2 million, non-repayable, to keep payroll and essential operations running, and Pivot Projects, which can be non-repayable up to $1 million or repayable (interest-free) above $1 million. A business can receive up to $3 million in combined non-repayable funding and up to $20 million in total RTRI funding when repayable support is included. This guide covers who should apply, how to choose between the streams, how the funding math works, and what to prepare. Every rule quoted here comes from FedDev Ontario's official pages as they read on October 7, 2026.
The enhanced RTRI at a glance
Who should apply, and who should not
FedDev Ontario's who-can-apply page sets three basic gates for businesses. Your business must "be an incorporated for-profit business located and operating in southern Ontario", "have a minimum of $1 million in annual revenue in one or both of your company's last two fiscal years", and "have been viable prior to tariffs". On top of those, you must show that ongoing trade disruptions, "including U.S. tariffs, Canadian countermeasures or countervailing duties", have affected the business. FedDev Ontario lists three ways this "could be demonstrated":
- operating in a sector impacted by Section 338 or Section 232 tariffs, including direct exporters and indirect exposure such as being a supply chain partner to an affected exporter, or operating in another tariff-impacted sector
- having at least 25% of revenue from goods that are ultimately exported to the U.S.
- significant cost increases where tariffs raised the price of goods and materials needed for production, supply chain disruption, or loss of revenue or customers
The program is open "across all sectors". FedDev Ontario says it will assess applications "based on program criteria, demonstrated need, and the business's proposed response to tariff impacts", so meeting the gates makes you eligible to be assessed, not approved.
- Incorporated for-profit businesses located and operating in southern Ontario
- At least $1 million in revenue in one or both of the last two fiscal years
- A viable operating history before the tariffs, supported by externally prepared financial statements
- Tariff impact you can document with records, not just describe
- Payroll or essential operating pressure you can tie to tariffs in a cash flow forecast (Liquidity)
- A defined productivity, diversification or resilience project with milestones (Pivot)
- Unincorporated businesses, such as sole proprietorships
- Businesses below $1 million revenue in both of the last two fiscal years
- Businesses that cannot show direct or indirect tariff exposure (FedDev Ontario lists these as ineligible)
- Businesses whose financial trouble clearly predates the tariffs
- Not-for-profits and governments seeking liquidity for their own operating expenses (ineligible)
- Owners who need to keep paying dividends during a liquidity period
Younger businesses. No minimum years in operation is published. FedDev Ontario's FAQ says viability is assessed "through applicant attestation, financial information, and confirmation of the business' operating history", and that businesses "established after March 21, 2025, may be considered on a case-by-case basis" where they can show adverse tariff effects. Headcount. The application asks for employee counts, but no employee threshold is published.
The streams, and how to choose
Liquidity Assistance
Short-term, non-repayable support to maintain Canadian operations and employment while you respond to trade disruption.
- Up to $2 million, up to 50% of eligible costs
- Based mainly on 50% of average eligible monthly payroll
- Up to 12 months, ending no later than March 31, 2028
- Eligible costs: salaries and wages; rent or lease, utilities, business insurance, property taxes
- No pivot project required
Pivot Projects
Project funding that improves productivity, increases competitiveness and reduces exposure to future trade disruption.
- Non-repayable: up to $1 million, up to 50% of eligible costs, for projects with local or regional economic benefits
- Repayable: over $1 million, up to 75% of eligible costs, interest-free
- Costs eligible up to 12 months before you submit
- Must be completed by March 31, 2029
FedDev Ontario's FAQ lists the combinations a business may receive: liquidity only (capped at $2 million); liquidity plus a non-repayable pivot project up to $1 million (aggregate up to $3 million); liquidity plus a pivot project over $1 million (aggregate up to $20 million); a non-repayable pivot project alone; or a repayable pivot project alone. These "may involve multiple contribution agreements". The published list does not include a non-repayable and a repayable pivot project together, so ask FedDev Ontario before planning on both.
Our advice on choosing. Start from the problem, not the dollar figure.
- If the immediate risk is meeting payroll and fixed costs over the next year, Liquidity Assistance is the fit. It is sized from payroll and capped by demonstrated need, so a strong cash flow forecast matters more than a big request.
- If you have a concrete investment that reduces tariff exposure (automation, new equipment, a new market, a new domestic supplier) and your cost share is in hand, a Pivot Project is the fit.
- If you need both, you can apply for both at the same time. Keep the labour costs separate: FedDev Ontario says "the same labour cost cannot be funded under both types of support".
- Between non-repayable and repayable pivot funding, the line is the size of the request. A request up to $1 million at up to 50% is the non-repayable route; over $1 million at up to 75% is repayable. A larger repayable contribution is still a debt-like obligation, so model the repayment schedule against your cash flow before you choose it.
How to scope a strong Pivot Project
FedDev Ontario lists eligible pivot activities as productivity improvements and process modernization; equipment and technology adoption, including automation and digitization; market diversification and export development; supply chain resilience; and activities that increase competitiveness and reduce trade-related risks. Eligible costs are "new, additional costs" that are "reasonable, incremental and directly related to eligible project activities". The budget "cannot include requests to support ongoing operating costs".
What we look for when we scope a project with a client (GovMoney's practice, not a FedDev Ontario rule):
- A straight line from tariff impact to project. If tariffs raised the cost of an imported input, the project should reduce that exposure, for example by qualifying a domestic supplier or automating to absorb the cost. If you lost U.S. customers, the project should open other markets.
- Measurable results. The application asks for targets against defined indicators: increased domestic revenue, export revenue outside the U.S., export revenue to the U.S., value of Canadian materials (steel, wood products and aluminum produced in Canada), Canadian content, jobs created and jobs maintained. Pick targets you can actually report on.
- A realistic schedule. A milestone schedule with completion dates is a mandatory attachment. Long-lead equipment needs enough buffer to finish before March 31, 2029.
- Your share funded from real sources. FedDev Ontario says in-kind contributions and cash from forecasted revenue "cannot be leveraged as a source of pivot project financing". Show cash on hand, a committed loan or other confirmed financing.
- Exclusions out of the budget. The FAQ names land and building acquisition, entertainment, motor vehicle costs and refinancing existing debt as examples of ineligible costs.
The funding math
The figures below are invented to show how the published rules work. Your actual amount depends on FedDev Ontario's assessment, and approved amounts "may be less than the amount requested".
A manufacturer's eligible payroll over the last 12 completed months is $2,160,000. Average eligible monthly payroll: $2,160,000 ÷ 12 = $180,000. At 50%: $180,000 × 50% = $90,000 per month. Over 12 months: $90,000 × 12 = $1,080,000, which is under the $2 million cap.
If the cash flow forecast shows a tariff-related shortfall of only $700,000 after other financing and assistance, the amount is limited to the lesser of demonstrated need and $2 million, so $700,000.
A larger employer with $400,000 in average eligible monthly payroll: $400,000 × 50% × 12 = $2,400,000, which is capped at $2,000,000.
Eligible project costs of $1,600,000: $1,600,000 × 50% = $800,000 from RTRI, under the $1 million cap. The business funds $1,600,000 − $800,000 = $800,000.
Eligible project costs of $2,400,000 on the non-repayable route: $2,400,000 × 50% = $1,200,000, capped at $1,000,000. The business funds $2,400,000 − $1,000,000 = $1,400,000.
Eligible project costs of $6,000,000: $6,000,000 × 75% = $4,500,000 repayable and interest-free. The business funds $6,000,000 − $4,500,000 = $1,500,000.
Suppose another government program also contributes $1,200,000 to the same project. Combined assistance would be $4,500,000 + $1,200,000 = $5,700,000, or 95% of costs. The normal cap for pivot projects is 90%: $6,000,000 × 90% = $5,400,000. To fit, the RTRI share would come down to $5,400,000 − $1,200,000 = $4,200,000.
Liquidity of $1,080,000 plus a non-repayable pivot project of $800,000: $1,080,000 + $800,000 = $1,880,000 non-repayable, inside the $3 million combined cap.
Liquidity of $2,000,000 plus a repayable pivot project of $4,500,000: $2,000,000 + $4,500,000 = $6,500,000 in total RTRI funding, inside the $20 million cap.
Stacking with other government funding
RTRI can sit alongside other federal, provincial, territorial or municipal programs "provided there is no duplication of funding for the same costs", and you must disclose all government assistance received or requested. For pivot projects, combined government assistance from all sources "will normally not exceed 90% of total eligible project costs, but may be up to 100% for projects led by Indigenous applicants". For liquidity, payroll already covered by another program, including EI Work-Sharing, is excluded, and "RTRI payments will be adjusted when other assistance becomes available". If you also run R&D, map each cost to one funding source first; our provincial SR&ED guide explains how government assistance interacts with tax credits.
What to prepare
FedDev Ontario lists these mandatory attachments on its how-to-apply page:
| Who | Mandatory documents |
|---|---|
| All applicants | Annual financial statements for the last 2 fiscal years plus the most recent interim statement. Statements must be externally prepared (Audit or Review Engagement preferred) with a balance sheet, income statement, cash flow statement and notes; internally prepared statements are accepted only as the interim for the most recent fiscal year. Articles of incorporation and amendments, constating documents, by-laws or similar. |
| Liquidity requests | Payroll records for the last month (number of employees, salaries paid, benefits) and evidence of the liquidity requirement, including a cash flow forecast. |
| Pivot projects | Biographies of key management or technical staff, and a project schedule with major activities and milestones with expected completion dates. Business plans and letters of support are optional. |
The application also asks you to describe what changed and when, which products, customers, suppliers or markets were affected, and the evidence you can provide. FedDev Ontario names examples: export sales records showing reduced volumes; invoices, supplier notices or purchase orders showing higher material costs; added import or export taxes; customs documents; revenue decline from lost customers or contracts; and layoffs, hiring freezes or EI Work-Sharing uptake. Revenue figures for your two most recent fiscal years must match the statements you attach.
The form itself is a PDF, "Application For Funding - RTRI", that you download, complete in Adobe Acrobat Reader (not a browser, tablet or phone), attach documents to, and submit from inside the form. The person submitting must be authorized to bind the company.
Common mistakes
These are the problems we see most often when reviewing tariff-response files. They are GovMoney's observations, not FedDev Ontario criteria.
- Asserting impact without records. The guide says to select only impacts "you can explain in the next question, supported with evidence". A supplier price notice is worth more than a paragraph about pressure.
- Counting the wrong payroll. Contractors, dividends, owner withdrawals, bonuses, severance, staff outside Canada and payroll covered by another program are all excluded from eligible payroll. Overstating it undermines the whole request.
- Putting tariffs or materials into liquidity costs. Tariffs, duties, raw materials, inventory, capital purchases, debt repayment and interest are not eligible operating costs, even though they help show impact.
- Double-counting labour. The same wages cannot appear in both the liquidity request and the pivot budget.
- Funding your share with forecast revenue. Forecasted revenue and in-kind contributions cannot finance a pivot project.
- Ignoring the dividend restriction. Liquidity recipients are restricted from declaring or paying dividends during the funding period, and some non-arm's-length payments may be restricted. Talk to your accountant before you apply.
- Internally prepared annual statements. Only the interim statement may be internally prepared.
A realistic timeline
FedDev Ontario has not published a review or decision timeline, so plan around your own preparation and the fixed end dates. This is how we would sequence it:
- Week 1: confirm the gates (incorporation, southern Ontario operations, $1 million revenue in one of the last two fiscal years) and pick the tariff impact test that fits your evidence.
- Weeks 1 to 3: pull the evidence file, the last two years of externally prepared statements, an interim statement and the last month of payroll records.
- Weeks 2 to 4: build the 12-month cash flow forecast (liquidity) or the budget by federal fiscal year, schedule and indicator targets (pivot).
- Submission: once the file is complete. There is no published closing date, but the program can change; FedDev Ontario "reserves the right to modify these guidelines at any time without notice".
- After approval: FedDev Ontario asks for further documents for the contribution agreement, such as insurance, conflict of interest, financial management and reporting.
Two dates to keep in view. Liquidity funding runs up to 12 months but ends no later than March 31, 2028, so by our reading a liquidity period that starts after March 31, 2027 would be shorter than 12 months. Pivot Project costs can be eligible up to 12 months before you submit, and all project work must finish by March 31, 2029.
Frequently asked questions
Who is eligible for the enhanced RTRI in southern Ontario?
An incorporated for-profit business located and operating in southern Ontario, with a minimum of $1 million in annual revenue in one or both of its last two fiscal years, that was viable before the tariffs and can show it has been affected by trade disruptions such as U.S. tariffs, Canadian countermeasures or countervailing duties. FedDev Ontario does not publish an employee threshold or a minimum number of years in operation.
How much Liquidity Assistance can a business receive?
Liquidity Assistance is non-repayable and is based mainly on 50% of average eligible monthly payroll for up to 12 months, ending no later than March 31, 2028. Certain essential operating costs may also be considered. FedDev Ontario says funding will not exceed demonstrated need or $2 million, whichever is less, and may be reduced for other government assistance.
What is the difference between non-repayable and repayable Pivot Project funding?
Non-repayable Pivot Project funding is up to $1 million at up to 50% of eligible costs for projects with local or regional economic benefits. Repayable funding is for requests over $1 million at up to 75% of eligible costs. Repayable contributions are interest-free, and the payment schedule is set out in the contribution agreement. All Pivot Projects must be completed by March 31, 2029.
Can I apply for Liquidity Assistance and a Pivot Project at the same time?
Yes. A business may receive up to $3 million in combined non-repayable funding (up to $2 million in liquidity plus up to $1 million for a non-repayable Pivot Project), and up to $20 million in total RTRI funding when repayable support is included. The same labour cost cannot be funded under both types of support.
Is there an application deadline for the enhanced RTRI?
FedDev Ontario shows the program as accepting applications and has not published a closing date or a decision timeline. The fixed dates are the funding windows: Liquidity Assistance ends no later than March 31, 2028 and Pivot Projects must be completed by March 31, 2029.
Can RTRI be combined with other government funding?
Yes, provided the same costs are not funded twice, and all government assistance must be disclosed. For Pivot Projects, combined government assistance from all sources will normally not exceed 90% of total eligible project costs, or up to 100% for projects led by Indigenous applicants.
Can I pay dividends while receiving Liquidity Assistance?
No, as a rule. FedDev Ontario says liquidity recipients are restricted from declaring or paying dividends during the funding period, with limited exceptions for pre-established dividends paid to an employee in lieu of salary at a market rate. Payments to related or non-arm's-length entities may also be restricted.
Where to go next
RTRI is one of several tariff-response and growth tools for southern Ontario businesses. Compare it with other programs in the Grant Finder, see the program summary on our RTRI program page, and read our guides to FedDev Ontario Business Scale-up and Productivity and the Strategic Response Fund if your project is larger or not tariff-driven.
Primary sources (checked October 7, 2026): FedDev Ontario What we support, Who can apply, Application Guide, How to apply, FAQ, and the September 8, 2026 news release. Program rules can change; final eligibility and amounts are decided by FedDev Ontario.
Think you might qualify for the enhanced RTRI?
We help southern Ontario businesses test eligibility, build the tariff impact evidence file, size liquidity requests, scope Pivot Projects, and map stacking against SR&ED, IRAP and provincial supports.
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