In a business landscape characterized by unpredictability and the effects of U.S. tariffs, various support initiatives are being made available to small and medium-sized enterprises (SMEs) in Quebec. The federal and provincial governments, together with their partners, are actively working to provide financing, liquidity assistance, market diversification, and job preservation to help businesses navigate these challenges.
For SMEs, the ramifications of tariffs can manifest in several ways: increased costs of supplies, reduced sales, liquidity challenges, supply chain disruptions, or the necessity to seek out new markets.
To tackle these issues, numerous organizations within the economic ecosystem are providing customized financial assistance and support programs tailored to the diverse realities of businesses.
Operating across Quebec’s regions, the SADC and CAE serve as essential resources for entrepreneurs. With an understanding of local conditions, their experts can assist SMEs in evaluating their needs, investigating available solutions, and connecting them with the most appropriate resources for their circumstances.
Here is a summary of the primary support measures accessible to businesses.
- Canada Economic Development for the Quebec Regions (CED)
Regional Tariff Response Initiative (RTRI)
The Regional Tariff Response Initiative is designed to assist SMEs impacted by customs duties, enabling them to sustain their operations, bolster their competitiveness, and enhance their resilience against commercial disruptions.
Support Offered
This initiative provides two categories of interventions:
- Liquidity Support: a non-repayable contribution of up to $2 million to meet cash flow requirements over a one-year period, covering wages and, if needed, specific essential operational costs.
- Reorientation Projects: financial assistance for investments in automation, equipment procurement, productivity improvement, technology implementation, and market diversification.
For reorientation projects, assistance may consist of a non-repayable contribution of up to $1 million, supplemented by a repayable contribution for the additional amount. Support rates can reach 50% for projects receiving non-repayable contributions and 75% for those with repayable contributions.
The maximum total of non-repayable assistance across both components is $3 million.
Eligible Companies
- Be based in Quebec and typically have fewer than 500 full-time employees;
- Show evidence of negative impacts from tariff disruptions on their operations;
- Have been viable prior to the imposition of tariffs;
- Demonstrate a genuine liquidity need or a project aimed at improving competitiveness and market diversification.
SMEs in manufacturing sectors and value chains affected by tariffs are specifically targeted.
Key Takeaway: an appealing measure for SMEs facing cash flow challenges or seeking to invest to decrease their reliance on impacted markets.
For more information: Economic Development Canada for the Regions of Quebec — Regional Tariff Response Initiative.
- Investissement Québec
Investissement Québec offers a variety of financial solutions and support services to help businesses adapt to commercial disruptions, enhance productivity, and diversify markets.
FORCE Program — Support for Businesses Affected by Tariffs
The Offensive Fund for Strengthening Economic Capacity (FORCE) aims to provide short-term support for Quebec businesses with promising profitability prospects but who find their activities affected by U.S. tariffs.
Support Offered
- Loans of up to $50 million;
- Financing to cover liquidity needs arising from tariff impacts;
- Maximum repayment term of seven years;
- Moratorium on principal repayment of up to 24 months;
- Variable interest rate, including a 0% rate in the first year.
Eligible Companies
For requests under $10 million, the company must have generated at least 25% of its revenue in the U.S. during one of the last two completed fiscal years.
For requests over $10 million, the company must be recognized as strategic by the Ministry of Economy, Innovation, and Energy, particularly due to its economic importance or its role in its sector.
Support can cover 50% of eligible expenses for requests of $10 million or less, and 75% of liquidity needs for requests exceeding $10 million.
Key Takeaway: a financing solution designed for companies needing to safeguard their operations and financial capabilities during times of commercial uncertainty.
The program is set to run until March 31, 2028.
PANORAMA — Diversifying Export Markets
The PANORAMA program is intended to assist Quebec businesses eager to boost their exports and develop new markets outside the U.S.
Support Offered
- Term loans ranging from $250,000 to $1 million for specific needs;
- Possibility to combine various financing solutions for larger needs;
- Support for development projects and international market expansion.
Eligible Companies
Companies established in Quebec with commercial experience outside the province and offering a product or service with potential in the targeted markets.
Key Takeaway: a solution for companies seeking to lessen their reliance on the American market and capitalize on new business opportunities.
Grand V — Accelerating Innovation and Productivity
The Grand V program supports companies looking to invest in technological innovation and sustainable productivity to foster their growth.
Support Offered
- Technological support from Investissement Québec experts;
- Term loans starting from $250,000;
- Moratorium of up to 48 months on principal repayment;
- No financing analysis fees.
Eligible Companies
Companies presenting a project focused on innovation, operation modernization, or sustainable productivity enhancement.
Key Takeaway: a relevant option for SMEs aiming to automate their operations, cut certain costs, and strengthen long-term competitiveness.
Other Solutions Offered by Investissement Québec
ESSOR Program: support for investment projects aimed at productivity, competitiveness, and growth. Companies can receive assistance in analyzing their projects and selecting the most suitable financing options.
FORÊT Program: aimed at the softwood lumber sector, this program promotes production diversification, product development, and working capital needs, offering loans of up to $5 million, covering up to 100% of eligible expenses, for a maximum duration of five years.
Export Support and Search for Canadian Suppliers
Investissement Québec International also provides specialized assistance to help businesses increase their sales in Canada, find new clients, and diversify their sources of supply.
A tactical unit facilitates business matchmaking, identifies new Canadian suppliers, and stimulates interprovincial trade.
The Program to Support Marketing and Exporting (PSCE) can also provide a non-repayable contribution of up to $60,000 per business per year, based on eligible expenses, targeted territories, and application periods.
For more information: Investissement Québec — Financing Solutions and Export Support.
- Government of Quebec and MRC
Emergency Assistance Program for Small and Medium-Sized Enterprises — Customs Tariffs (PAUPME)
The Government of Quebec, through regional county municipalities (MRC), offers an emergency aid program for SMEs facing financial challenges due to U.S. customs tariffs.
The goal is to enable them to maintain their operations while they implement strategies to adjust to the new commercial landscape.
Support Offered
- Loan of up to $150,000;
- Assistance covering up to 75% of eligible liquidity needs over a one-year period;
- 0% interest rate for the first 12 months, then 3.86% based on the terms provided;
- Initial 12-month moratorium on principal repayment, with potential for extension;
- Maximum amortization period of 60 months, excluding moratoriums.
Eligible Companies
For-profit companies and social economy enterprises must generally:
- Have generated annual revenue between $200,000 and $2 million in the last completed fiscal year;
- Be registered with the Quebec Business Register for at least two years and have their headquarters in Quebec;
- Have shown profitability in at least one of the last two completed fiscal years, subject to exceptions provided;
- Have generated at least 25% of their 2024 revenue directly or indirectly through exports to the U.S.;
- Show a real or anticipated revenue decrease of at least 20% due to U.S. tariffs.
The company must also have reasonable medium-term profitability prospects and commit to implementing necessary adaptation measures.
How to Access the Program?
The program is administered locally by MRCs. Businesses can reach out to a PME Access Network service point for information and assistance with their applications.
Key Takeaway: a particularly fitting aid for small enterprises experiencing significant liquidity pressure and desiring to maintain their operations.
The program is scheduled until March 31, 2028.
For more information: PME Access Network or [email protected].
- Business Development Bank of Canada (BDC)
Pivot to Propel Program
The Business Development Bank of Canada offers funding solutions to help enterprises address the effects of customs tariffs and modify their business models.
Support Offered
Loans ranging from $250,000 to $5 million are available for three types of needs:
- Liquidity Support: helps businesses facing or anticipating a liquidity shortfall directly due to new customs tariffs.
- Pivot Support: finances necessary adjustments to strengthen operations, rethink supply chains, or diversify markets.
- Equipment Financing: enables affected businesses to invest in new equipment to boost productivity and competitiveness.
Repayment terms are customized based on the project type, with amortization periods extending up to 8, 7, and 14 years, including interest-only payment terms.
Eligible Companies
Businesses must generally:
- Be established in Canada;
- Generate annual revenue of at least $1 million;
- Demonstrate a record of positive cash flow;
- Show exposure to customs tariffs corresponding to the requested component;
- Present a resilience plan for reorientation or equipment financing projects.
Key Takeaway: flexible solutions to assist businesses in overcoming immediate challenges while preparing for future growth.
Support for the Steel, Aluminum, and Forestry Industries
The BDC also provides sector-specific programs aimed at businesses particularly affected by commercial disruptions.
Steel and Aluminum Industries
Loans of up to $50 million are available to support liquidity, operational resilience, market diversification, and growth for businesses directly impacted by U.S. tariffs on steel, aluminum, or copper.
Forestry Industry
Loans of up to $25 million are available to support liquidity, modernize operations, invest in innovation, and pursue new markets. Specific measures also target the softwood lumber sector, with financing options of up to $50 million, depending on the program.
Eligible Companies
Common criteria include being established in Canada, generating annual revenue of at least $1 million, and having a history of positive cash flow. Additional sector-specific requirements may apply.
For more information: Business Development Bank of Canada — Support Programs for Businesses Affected by Tariffs.
- Service Canada
Work-Sharing Program — Avoid Layoffs
The Shared Work program enables employers to temporarily reduce their employees’ working hours rather than resort to layoffs during a downturn in their operations.
Eligible employees receive Employment Insurance benefits to offset part of the income loss associated with the reduction in working hours.
Support Offered
- Maintaining a skilled and experienced workforce;
- Temporary working hour reductions;
- Employment Insurance benefits for eligible employees;
- Temporary special provisions granting additional flexibility for businesses impacted by commercial disruptions.
Eligible Companies
Standard measures generally target companies operating in Canada for at least two years that are experiencing a temporary decline in activities and meet the program’s other requirements.
Special temporary measures, effective until March 31, 2028, allow certain companies operating for at least one year to benefit from relaxed criteria.
An agreement can last up to 76 weeks, with potential extensions of up to 152 weeks under special measures, according to applicable conditions.
Key Takeaway: a solution to preserve jobs, maintain skills within the organization, and facilitate the resumption of operations.
Employment Maintenance Subsidy for Workers
This measure complements the Shared Work program and is designed to support employee training during periods when their working hours are reduced.
Support Offered
- Income supplement for employees participating in eligible training activities;
- Increase in the income replacement rate from 55% to 70% during qualified training periods, subject to stated conditions;
- Financial support for employers to cover some training and administrative costs, up to $1,000 per participant.
Training may focus on digital skills, emerging technologies, software, management, specialized abilities, and process optimization.
Eligible Companies
The subsidy is directed at employers with an approved and implemented Shared Work agreement. Training must comply with program criteria and be offered during a minimum portion of the weeks covered by the agreement.
Key Takeaway: an opportunity to utilize a temporary slowdown to enhance staff skills and prepare for recovery.
For more information: Service Canada — Shared Work Program and Employment Maintenance Subsidy for Workers.
- Innovation, Science and Economic Development Canada (ISED)
Strategic Response Fund (SRF) — Canada Strong Diversification Fund
The federal government, through the Strategic Response Fund, proposes investments aimed at bolstering the resilience of Canadian businesses, fostering innovation, and supporting diversification efforts.
The Diversification Fund for a Strong Canada encompasses measures to help businesses realign activities, access new markets, and safeguard their operational capabilities.
Support Offered
- Funding for large-scale projects geared towards diversifying and realigning activities;
- Support for strategic investments, productivity, and innovation;
- Non-repayable contributions for specific capital maintenance needs of companies significantly impacted by U.S. tariffs.
Eligible Companies
For the new capital maintenance component, the specified criteria include:
- A Canadian business demonstrating exposure to U.S. tariffs;
- Annual revenue of at least $10 million and the requisite eligible capital expenditure, as per program thresholds;
- Evidence of profitability prospects and sufficient financial capabilities;
- Expenditures intended for repairing, replacing, or maintaining existing capital to sustain ongoing operations.
Manufacturing sectors and numerous industrial domains affected by tariffs are among the target clientele.
Key Takeaway: a particularly pertinent option for industrial enterprises needing to secure their facilities, enhance resilience, and invest in strategic repositioning.
For more information: Innovation, Science and Economic Development Canada — Strategic Response Fund.
- Other Initiatives to Strengthen Quebec Businesses
In addition to financing programs, various governmental initiatives aim to bolster Canadian supply chains and encourage the development of new business opportunities.
The Government of Quebec promotes local purchasing strategies among state-owned companies to advance Quebec products and decrease reliance on certain U.S. suppliers.
Export support services and business matchmaking initiatives further assist in connecting enterprises with new clients and suppliers in Quebec, other parts of Canada, and international markets.
These interventions complement financial aid programs by providing businesses with tangible opportunities to broaden their activities and enhance their competitive standing.
The SADC and CAE: Local Partners to Navigate This Period of Uncertainty
Given the multitude of support measures, it can be challenging for an SME to determine which program best aligns with its needs.
This is where the SADC and CAE can provide significant assistance.
Operating throughout Quebec, our teams understand the economic realities of their regions and the trials facing entrepreneurs. They can help in assessing needs, directing businesses to suitable resources, and suggesting complementary solutions.
Through their three primary areas of intervention — financing, support, and local economic development — the SADC and CAE contribute to sustaining the vitality and resilience of businesses and communities.
Whether addressing funding requirements, embarking on modernization initiatives, revisiting business practices, or investigating new growth opportunities, our professionals are ready to support entrepreneurs in their endeavors.
Is your business impacted by customs tariffs or preparing for market changes?
Reach out to your local SADC or CAE to discuss your needs and explore the available solutions.
Find your SADC or CAE: www.sadc-cae.ca
The programs outlined are subject to eligibility criteria and potential modifications. Businesses are encouraged to consult the responsible organizations for details regarding the conditions that apply at the time of their application.
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