The recently announced U.S. tariffs have impacted many Canadian businesses, prompting the availability of various financial and informational support resources.
Navigating the Challenges of U.S. Tariffs
The new U.S. tariffs have introduced additional financial pressures and uncertainty on Canadian businesses. With small and medium-sized businesses operating in a global market, various resources are available to help mitigate the impact of these tariffs and support long-term success. Whether through advisory services, financial assistance, or trade diversification programs, there are strategies available to help businesses adapt to these challenges and thrive in the face of adversity.
General Resources
Canadian businesses looking for guidance on how to handle the implications of U.S. tariffs can access several resources designed to help them strategize and adjust. The Ontario Chamber of Commerce (OCC) has developed a resource hub that provides key updates, business strategies, and advocacy efforts related to U.S. tariffs. Additionally, its ten-step guide offers actionable insights to mitigate tariff-related risks, including supply chain adjustments, cost management, and leveraging available financial support.
Financial Support for Businesses Affected by U.S. Tariffs
To help businesses mitigate the economic impact of these new tariffs, the Government of Canada has introduced several financial support programs. These initiatives are designed to provide funding, credit access, and market diversification opportunities.
1. Export Development Canada (EDC) Trade Impact Program
The Trade Impact Program is a newly launched initiative through EDC that will deploy $5 billion over two years to support Canadian exporters. Even if your company has never worked with EDC before or does not directly sell to international customers, businesses that contribute to a supply chain of goods or services outside Canada – or have a plan to in the future – may considered be an exporter. This program aims to provide advice, insurance, and financing to:
- Assist businesses in overcoming trade barriers imposed by the new policies.
- Help businesses expand into new international markets beyond the U.S.
- Offer working capital solutions to businesses facing cash flow shortages due to the tariffs.
- Provide financial protection against risks such as non-payment and currency fluctuations.
If you think your business may be eligible as an exporter, contributor to an exporting supply chain or have a plan to begin exporting, contact EDC or take their online assessment to learn more details about how EDC can help.
2. Business Development Bank of Canada (BDC) Loan Program
The BDC is making available $500 million in favourably priced loans to businesses affected by U.S. tariffs, including companies within directly impacted industries and their supply chains. The definition of directly impacted industries is very broad and include those that experience financial disruption or other challenges during an economic downturn caused by a tariff trade war. Such industries may include: hospitality and tourism, retail & consumer goods, manufacturing and supply chain, construction and real estate, personal services amongst others. This initiative includes:
- Access to capital to maintain operations and invest in new opportunities.
- In addition to loan support, businesses can access advisory services focusing on financial management, operational adjustments, and market diversification strategies.
The BDC Pivot to Grow Loan provides up to $2 million with a 72-month repayment timeline including the first 12 months of interest-only payments for businesses with:
- A minimum of 25% of sales are exported to the U.S.
- $2 million or more in annual sales
- Positive cash flow and profitability
If you think your business may be eligible, submit a loan request online and BDC will reach out to provide more details.
3. CanExport SMEs Program (Canada’s Trade Commissioner Service)
The CanExport SMEs program supports small and medium-sized enterprises (SMEs) looking to expand into new international markets. Eligible businesses may receive up to $50,000 in grant funding, covering up to 50% of market development costs, including:
- Market research and analysis.
- Business-to-business matchmaking and networking.
- Trade shows and business travel to explore new export opportunities.
- Regulatory compliance support for foreign markets.
To apply for this grant, read the CanExport SME Applicant guide and apply through their online portal.
4. Farm Credit Canada (FCC) Lending Support
For businesses operating in the agriculture and food industries, Farm Credit Canada (FCC) is providing $1 billion in new financing to help offset tariff-based financial pressures. This initiative is designed to:
- Address immediate cash flow challenges.
- Provide financing to support operational stability and market adaptability.
- Ensure continued access to resources necessary for agricultural and food product distribution.
Eligible businesses may contact FCC for more information about the financing and application process.
How Bateman MacKay Can Help
The challenges posed by U.S. tariffs highlight the need for careful financial planning, strategic decision-making, and expert guidance. Having a proactive accounting firm like Bateman MacKay LLP ensures that your business is well-positioned to navigate financial uncertainty, maximize available funding, and implement tax-efficient strategies to maintain profitability. Our team is dedicated to helping our clients grow their business, preserve wealth, and ultimately succeed.
Contact us today to discuss how proactive tax and accounting services can help your business overcome any challenges it may face now or in the future. Subscribe to our blog and follow us on LinkedIn for additional updates on tax, accounting, and business advisory matters.
