In an effort to strengthen Ontario’s economic resilience and expand market reach, the Ontario government has introduced the Ontario Together Trade Fund (OTTF). This initiative is designed to support businesses, particularly small and medium enterprises, that have been impacted by trade disruptions, such as those caused by U.S. tariffs.
Available Funding
- Up to $5 million in grants or loans
- Covering 75% of eligible costs
- Loan will be interest free for up to 2 years
- Up to $1.5 million may be forgiven
Qualifying Businesses:
- Operate within Ontario and have at least three years of operational history.
- Invest a minimum of $200,000 in eligible project costs.
- Complete their projects within two years.
- Demonstrate that all financing is in place by the project start date.
Key Objectives of the OTTF:
- Help businesses diversify their sales portfolios by expanding into new markets, with a focus on interprovincial trade
- Enhancing competitiveness by supporting investments in advanced technology and innovative processes to increase manufacturing capacity and profitability
- Strengthening Ontario’s supply chains through reshoring efforts and encouraging the procurement of equipment and supplies from within Ontario and Canada
- Focusing on creating and retaining jobs within the provinces
Eligible Businesses:
- Operate within Ontario
- Three years of operations with financial statements
- Employ at least 5 full time employees
- Demonstrate any of the following impacts due to U.S. tariffs:
- Operate in an extensively targeted sector (e.g. steel sector, auto sector, aluminum)
- Significant exposure to trade risk (revenue loss of 30% or higher)
- Pivot operations to supply a customer looking to replace a current supplier due to tariffs
Potential Projects:
The fund provides financial support for projects that enhance domestic competitiveness, build local capacity, and pivot operations to manufacture less trade-exposed goods. Priority is given to projects that address gaps in Ontario’s supply chain and capitalize on domestic market opportunities.
Examples of Eligible Projects:
- Pivoting production to serve new markets within Ontario.
- Reshoring manufacturing processes to Ontario facilities.
- Investing in new technology to increase production capacity and efficiency.
The Ontario Together Trade Fund is a strategic initiative to bolster the province’s economic stability and ensure that local businesses can thrive despite external trade challenges. By focusing on innovation, local supply chains, and market expansion, the OTTF aims to create a more resilient and competitive business environment in Ontario.
Detailed information is available here Ontario Together Trade Fund webpage.
For more information please contact your Welch LLP trusted advisor.
