The Ontario government says it is now launching the “next pillar” in its plan to protect the province from tariff-related hardships with a new program providing emergency loans to businesses in the hardest-hit sectors.
During a news conference at Queen’s Park on Wednesday, Ontario Finance Minister Peter Bethlenfalvy said up to $1 billion will be allocated for emergency loan support for businesses in the province’s steel, aluminum, and auto sectors as part of the Protect Ontario Financing Program.
“This program is specifically designed to address businesses impacted by Sec. 232 tariffs only after they have exhausted all federal tariffs support programs,” he told reporters on Wednesday.
Bethlenfalvy said the program is a “key part” of the provincial government’s plan to keep workers on the job but also to “build a more resilient and self-reliant economy.”
The province previously announced a $9 billion tax-deferral program to soften the blow for businesses impacted by Trump’s tariffs. An additional $2 billion was announced at that time as part of a rebate for eligible businesses through the Workplace Safety Insurance Board (WSIB) to keep workers on the job.
Bethlenfalvy said the program announced Wednesday will offer relief to businesses facing challenges with things like payroll, lease, and utility payments.
He noted that only companies impacted by Sec. 232 tariffs will be eligible and the businesses must have a minimum of 10 employees, along with a minimum of $2 million in annual revenue.
Loan amounts will range from $250,000 to $40 million, Bethlenfalvy said.
Along with an ongoing 50 per cent tariff on Canadian steel and aluminum, U.S. President Donald Trump increased the tariff rate to 35 per cent on Canadian goods that are not covered by the Canada-U.S.-Mexico Agreement (CUSMA).
A 25 per cent tariff on non-CUSMA parts in the auto sector also remains in place.
“Our close economic ties to the U.S. indeed present elevated risks and uncertainty to the province’s economic outlook,” Ontario’s finance minister said Wednesday.
“I have confidence that Ontario will overcome these challenges.”
With files from CTV News Toronto’s Phil Tsekouras
