Regional Tariff Response Initiative (RTRI): Funding to Help Businesses in the Prairie Provinces Respond to Tariff Impacts

Funding Support for Prairie Businesses Responding to Tariff Impacts

The Regional Tariff Response Initiative (RTRI), administered by Prairies Economic Development Canada (PrairiesCan), provides funding to help businesses and organizations in Alberta, Saskatchewan, and Manitoba respond to the impacts of tariffs and ongoing trade disruptions.

As part of the Government of Canada’s $7.5 billion federal tariff response package, the RTRI is designed to help eligible organizations address short-term liquidity pressures while making investments that strengthen competitiveness, diversify markets, improve supply chains, and build long-term resilience.

The program provides support to small and medium-sized enterprises (SMEs), Indigenous-owned businesses and organizations, and not-for-profit organizations that support tariff-impacted businesses in the Prairie provinces.

Who Can Apply?

The RTRI is available to several types of applicants. Eligibility requirements and available support differ depending on whether you are an incorporated business, a not-for-profit organization, or an Indigenous applicant.

Incorporated Businesses

Businesses operating in tariff-impacted sectors are encouraged to apply.

To be eligible, your business must:

Be an incorporated, for-profit business located and operating in Alberta, Saskatchewan, or Manitoba
Have a minimum of $1 million in annual revenue in one or both of the company’s last two fiscal years
Have been viable prior to the tariffs

Businesses must also demonstrate that they have been affected by ongoing trade disruptions, including U.S. tariffs, Canadian countermeasures, or countervailing duties.

This impact may be demonstrated if your business:

Operates in a sector affected by Section 338 or Section 232 tariffs, including businesses with direct or indirect exposure through affected supply chains
Has 25% or more of its revenue coming from goods that are ultimately exported to the United States
Has experienced significant cost increases resulting from tariffs on goods or materials required for production
Has experienced supply chain disruptions
Has experienced a loss of revenue or customers

Not-for-Profit Organizations Supporting Tariff-Impacted Businesses

Not-for-profit organizations can also receive support through the RTRI when they provide services or programs that assist businesses, innovators, or entrepreneurs affected by tariffs.

Eligible organizations must:

Support businesses, innovators, or entrepreneurs in Alberta, Saskatchewan, or Manitoba that have been negatively affected by tariffs imposed by the United States or China and/or Canadian counter-tariffs
Be capable of entering into legally binding agreements
Have an operating presence in the Prairie provinces

Eligible not-for-profit organizations may include:

Post-secondary educational institutions
Business accelerators and incubators
Angel networks
Social enterprises
Industry associations and consortia
Municipalities and other levels of government

Not-for-profit organizations are not eligible for RTRI liquidity assistance. Their support is intended primarily for projects that help tariff-impacted businesses through activities such as business advisory services, market development, export readiness, and supply chain strengthening.

Indigenous-Owned Businesses and Organizations

Indigenous-led businesses and organizations are strongly encouraged to apply to the RTRI.

The program provides different funding parameters for Indigenous applicants, recognizing both commercial and non-commercial projects.

For Indigenous applicants:

Commercial projects can normally receive contributions covering up to 80% of eligible project costs
At least 20% of project costs should be covered by non-PrairiesCan funding
Non-commercial projects can normally receive contributions covering up to 100% of eligible project costs

What Funding Is Available?

PrairiesCan provides contributions rather than grants through the RTRI. Depending on the applicant and project, contributions may be either non-repayable or repayable.

For businesses, the program offers two primary forms of support:

1. Liquidity Assistance

Liquidity assistance is intended to help businesses maintain Canadian operations and retain employees while dealing with short-term tariff-related disruptions.

Eligible businesses may receive:

Up to $2 million in non-repayable funding
Up to 50% of eligible costs
Funding for a period of up to 12 months

The funding period must end no later than March 31, 2028.

Liquidity assistance is based on the business’s demonstrated and quantified liquidity needs. The amount is primarily based on 50% of average monthly payroll for up to 12 months, although other eligible operating costs may also be considered.

Eligible liquidity costs include:

Employee salaries and wages
Rent or commercial lease payments
Utilities
Business insurance
Property taxes

2. Pivot Projects

Pivot projects are designed for businesses looking to adapt to changing trade conditions and strengthen their long-term competitiveness.

Projects may support investments that:

Improve productivity
Modernize business processes
Adopt new equipment and technology
Introduce automation or digitization
Diversify markets
Expand exports
Strengthen supply chains
Increase competitiveness
Reduce exposure to future trade disruptions

For pivot projects, businesses may receive:

Non-repayable funding

Up to $1 million for projects with local or regional economic benefits
Up to 50% of eligible costs

Repayable funding

Larger-scale transformative projects may receive:

More than $1 million in repayable funding
Up to 75% of eligible project costs
Interest-free contributions

Projects may have different start and end dates, but all projects must be completed by March 31, 2029.

Combined Funding

Eligible businesses may apply for both liquidity assistance and a pivot project where they require immediate financial support while also making investments to improve their long-term resilience.

A business may receive up to $3 million in combined non-repayable funding, consisting of:

Up to $2 million in liquidity assistance
Up to $1 million for a non-repayable pivot project

When repayable support is included, a business may receive up to $20 million in total RTRI funding. Businesses are normally limited to one RTRI non-repayable project approval and one RTRI liquidity project approval.

Funding for Not-for-Profit Organizations

Not-for-profit organizations have different funding parameters under the RTRI.

Funding is normally:

Non-repayable
Available for up to 90% of eligible project costs
Subject to at least 10% of project costs being covered through non-PrairiesCan funding

For commercial or revenue-generating projects, contributions will normally be repayable and can cover up to 75% of eligible project costs.

Not-for-profit projects may focus on helping Prairie businesses respond to tariff impacts through:

Business advisory and technical services
Market development and diversification
Export readiness
Supply chain strengthening

What Can the RTRI Fund?

The RTRI can support both immediate responses to tariff-related pressures and longer-term investments that help organizations become more competitive and resilient.

Pivot Projects

Eligible activities may include:

Productivity and Process Improvements
- Investments that improve productivity, modernize processes, or make operations more efficient.
Technology and Automation
- Adoption of equipment and technology, including automation and digitization.
Market Diversification
- Activities that help businesses develop new domestic or international markets and reduce reliance on markets affected by trade disruptions.
Export Development
- Projects designed to improve export readiness or expand into new export markets.
Supply Chain Resilience
- Activities that strengthen supply chains and reduce vulnerability to future disruptions.
Competitiveness and Risk Reduction
- Investments that improve competitiveness and reduce exposure to trade-related risks.

Eligible Project Costs

For pivot projects and eligible not-for-profit projects, costs must be new, additional costs that are directly related to activities improving productivity, competitiveness, supply chain resilience, market diversification, or long-term growth.

Eligible costs can include:

Labour, including wages and benefits
Materials
Machinery and equipment
Consultancy fees
Professional, advisory, and technical services
Business advisory expenses
Planning and counselling services
Coaching and mentoring
Networking events, workshops, and conferences
Business training
Costs related to expanding or maintaining markets

Some costs may be eligible retroactively for up to 12 months before the receipt of a signed funding request, but not earlier than March 21, 2025.

What Cannot Be Funded?

The RTRI does not cover every type of business expense.

For pivot projects, costs may be considered ineligible when they are not reasonable, are not incremental, or are not directly related to project activities.

Examples of ineligible costs include:

Land and building acquisition
Entertainment expenses
Refinancing existing debt
Salary bonuses
Dividend payments

RTRI funding also cannot support projects that relocate company operations outside of Canada.

Can RTRI Be Combined With Other Government Funding?

Yes. Applicants may receive funding from other federal, provincial, territorial, or municipal programs, provided that the same costs are not funded twice.

Applicants must disclose all government assistance that they have received or requested.

For liquidity assistance specifically, costs that have already been reimbursed through another government wage or operating support program cannot also be claimed under the RTRI.

In general, total government funding can cover up to:

90% of project costs for businesses and other commercial, revenue-generating projects
100% of project costs for non-commercial projects

How Does the Application Process Work?

The RTRI is a competitive funding program. Applying does not guarantee funding.

PrairiesCan assesses applications based on factors including:

Program eligibility and criteria
Business or organizational viability
Economic impact
Ability to achieve program objectives
Demonstrated need
The proposed response to tariff impacts

Applicants may be contacted for additional information during the assessment process, but applicants are encouraged to submit a complete and thorough application from the outset.

For incorporated businesses, funding decisions are usually made within 90 business days after PrairiesCan receives a complete application and satisfactory supporting documentation.

For not-for-profit organizations, expressions of interest are initially assessed, with the strongest applications invited to proceed to a full application and detailed assessment. Funding decisions are generally made within 90 business days after a complete application is received.

What Happens If Your Application Is Approved?

Successful applicants enter into a contribution agreement with PrairiesCan.

The agreement outlines the terms and conditions of the funding and must generally be signed within 30 days of being notified of approval.

All funding sources must be confirmed before the agreement can be signed.

Successful applicants are also responsible for ongoing reporting requirements, which can include:

Progress reports at least twice per year
Claims for reimbursement of eligible project costs
Annual financial statements, where applicable
Tracking project activities and deliverables
Completing the project by the agreed project end date

How Is RTRI Funding Paid?

RTRI contributions are generally provided through periodic reimbursements based on claims submitted by the recipient.

Reimbursements are based on the approved portion of eligible project costs that have already been paid by the applicant.

This means businesses should plan their project cash flow carefully and account for the timing between paying project expenses, submitting claims, and receiving reimbursement.

For repayable contributions, there is normally a one-year grace period after project completion, followed by equal monthly repayments over five years.

PrairiesCan funding normally:

Charges no interest
Requires no security or collateral
Has no penalty for early repayment

Is Your Prairie Business Ready to Respond to Tariff Impacts?

Tariffs and trade disruptions can create immediate financial pressures while also forcing businesses to reconsider their supply chains, markets, technology, and long-term growth strategies.

The Regional Tariff Response Initiative provides Prairie businesses and eligible organizations with access to funding that can address both short-term liquidity needs and longer-term investments in competitiveness and resilience.

For businesses affected by tariffs, determining which RTRI stream applies, identifying eligible costs, demonstrating tariff-related impacts, and developing a strong project plan are important steps in preparing an application.

How EVAMAX Can Help

Navigating government funding programs can be complex. EVAMAX can help businesses identify funding opportunities, assess program eligibility, develop funding strategies, and prepare strong applications that clearly connect proposed projects to program objectives.

If your business in Alberta, Saskatchewan, or Manitoba has been affected by tariffs or trade disruptions, the RTRI may provide an opportunity to access funding for immediate liquidity needs, market diversification, technology adoption, productivity improvements, supply chain resilience, and other strategic investments.

Contact EVAMAX to discuss whether the Regional Tariff Response Initiative may be a fit for your business.