Federal Tariff Response Funding Available to Help BC Businesses Cover Payroll, Adapt and Invest

Tariffs and ongoing trade disruptions continue to create real challenges for Canadian businesses, from higher input costs and disrupted supply chains to lost customers and pressure on cash flow.

The Government of Canada’s Regional Tariff Response Initiative (RTRI) is intended to help businesses manage those pressures and make the investments needed to become more competitive and resilient.
In British Columbia, the program is delivered by PacifiCan and is currently accepting applications. The expanded program now includes something particularly important for tariff-affected businesses: non-repayable funding that can help cover payroll and, in some cases, essential overhead costs while a business works through short-term financial pressure.

Businesses looking for conventional financing rather than government project funding can also explore BDC’s Pivot to Grow program, which provides financing for businesses affected by trade disruption.

What RTRI Is Designed to Do

RTRI provides two broad types of business support:

• short-term liquidity assistance to help businesses maintain operations and employment; and
• funding for longer-term “pivot” projects that help businesses improve productivity, diversify markets, strengthen supply chains and reduce their exposure to future trade disruption.

The program is aimed at businesses that were viable before the tariff disruption but are now facing direct or indirect impacts from tariffs, countermeasures or related changes in trade.

Non-Repayable Funding for Payroll and Overhead

One of the most important parts of the expanded RTRI is non-repayable liquidity assistance of up to $2 million for businesses experiencing tariff-related financial pressure.

Unlike a loan, this is a non-repayable contribution — essentially grant-style support that generally does not have to be paid back as long as the business complies with the terms of its funding agreement.
The funding is primarily intended to help businesses maintain Canadian operations and retain employees while they respond to trade disruption.

For eligible businesses, assistance can equal up to 50% of average eligible monthly payroll for up to 12 months, subject to the business demonstrating an actual liquidity need and the $2 million program maximum.

In some circumstances, PacifiCan can also consider up to 50% of certain essential operating costs when payroll-based support does not fully address the business’s demonstrated need. Eligible overhead can include:

• commercial rent or lease payments;
• utilities;
• business insurance; and
• property taxes.

This means RTRI is not limited to businesses planning a major capital project. A tariff-affected business struggling with short-term cash flow may potentially be able to access non-repayable funding to help keep employees on payroll and cover some of the basic costs of keeping the business operating.

Liquidity assistance can run for up to 12 months and must end no later than March 31, 2028. Funding is based on demonstrated need, so the amount approved may be less than the maximum available.

Funding to Help Businesses Pivot and Adapt

RTRI also continues to support longer-term projects designed to help businesses respond strategically to trade disruption.

Potential projects can include investments that:

• improve productivity and reduce production costs;
• introduce new equipment, automation or technology;
• strengthen supply chains;
• develop new products or production capabilities;
• find new customers or enter new markets;
• increase domestic or interprovincial trade; or
• reduce dependence on markets or supply chains exposed to tariffs.

PacifiCan currently offers two funding options for these projects:
Non-repayable pivot funding: Up to $1 million, generally covering up to 50% of eligible project costs for projects that provide broader economic benefits.
Repayable pivot funding: Contributions of more than $1 million may be available for larger commercial transformation projects, generally covering up to 75% of eligible costs.
 
A business can apply for both liquidity assistance and a pivot project if it needs immediate financial support while also investing in longer-term changes. Eligible businesses can therefore potentially access up to $3 million in combined non-repayable support — up to $2 million for liquidity and up to $1 million for a non-repayable pivot project. 

Who May Be Eligible?

To qualify, a business generally must:

• be an incorporated, for-profit business located and operating in British Columbia;
• have at least $1 million in annual revenue in one or both of its last two fiscal years;
• have been viable before the tariff disruption; and
• demonstrate direct or indirect exposure to tariffs or ongoing trade disruptions.

That exposure does not necessarily mean the business has to be directly exporting a tariffed product.
Businesses may qualify because they operate in a tariff-affected sector, supply another affected exporter, derive at least 25% of revenue from goods ultimately exported to the US, or have experienced significant tariff-related cost increases, supply-chain disruption, lost customers or declining revenue.

Examples of Projects That Could Fit

Every application is assessed individually, but potential projects could include:

• a manufacturer investing in automation or new production equipment to lower costs;
• a fabricator purchasing machinery or software to improve productivity;
• a food processor expanding processing or packaging capacity;
• an exporter developing customers in new international markets;
• a business investing in digitization, inventory management or supply-chain technology;
• a company undertaking certification or compliance work required to enter new markets;
• a business developing new products to serve Canadian customers; or
• a company restructuring its supply chain to reduce exposure to tariff-affected inputs.

The common thread is that the project should help the business become more productive, competitive or resilient in response to trade disruption.

What Costs Can Be Covered?

For pivot projects, eligible expenses can include equipment and machinery, professional and technical services, incremental employee costs, marketing and market-development activities, training, and other costs directly related to the project.

Pivot-project costs may be considered retroactively for up to 12 months before an application is submitted, but no earlier than April 1, 2026. Projects must be completed by March 31, 2029.

Liquidity assistance has a different timeline. Eligible liquidity costs can begin no earlier than August 22, 2026 and assistance must end by March 31, 2028. 

Costs that are generally not eligible include raw materials and production inputs, dividends and bonuses, land or building purchases, motor vehicles, depreciation, refinancing existing debt, hospitality and entertainment, and costs that are not considered reasonable or necessary.

Preparing an Application

RTRI is not an automatic payment simply because a business has been affected by tariffs.

Businesses need to clearly demonstrate the trade impact they are experiencing and, depending on the type of support requested, either the short-term liquidity need or the business case for the proposed investment.

Applicants should be prepared to provide information such as:

• recent financial statements;
• evidence of tariff or trade impacts;
• payroll information if applying for liquidity assistance;
• cash-flow forecasts;
• a project budget and plan for pivot projects; and
• information on other funding available to the business.

For liquidity assistance in particular, PacifiCan will look at the business’s actual shortfall after considering forecast revenue, working capital, available financing and other government assistance.

What This Means for Langley Businesses

RTRI is worth exploring for Langley businesses that are experiencing tariff-related financial pressure or planning a significant investment to adapt to the changing trade environment.

The program may be particularly relevant to manufacturers, processors, exporters, food and agriculture businesses, machinery and equipment firms, and businesses that form part of tariff-affected supply chains.

But the new liquidity support also makes RTRI relevant to businesses whose immediate challenge is much simpler: keeping people employed and covering the costs of operating while revenues, customers or supply chains are disrupted.

For an eligible business, access to non-repayable support for payroll and essential overhead could provide meaningful breathing room while management works on longer-term changes.

And for businesses that need both, the ability to combine short-term liquidity support with a longer-term pivot project creates an opportunity to address today’s cash-flow challenge while also investing in greater resilience for tomorrow.

How to Apply

RTRI is currently accepting applications from businesses in British Columbia.   Businesses interested in the program should:

1. Review the RTRI eligibility requirements and applicant guide.
2. Determine whether liquidity assistance, a pivot project, or both are appropriate.
3. Gather evidence showing how tariffs or trade disruption have affected the business.
4. Prepare the required financial, payroll or project information.
5. Submit an application directly to PacifiCan.

 Review the Regional Tariff Response Initiative through PacifiCan >

The Greater Langley Chamber encourages tariff-affected businesses to review the program and determine whether it could help protect employment, manage immediate operating pressures, or support investments in productivity, market diversification, supply-chain resilience and future growth. 

If you have questions or want to share your experience with this program or other government programs, contact us directly >

This information is provided for general guidance only and is not financial or legal advice. Program eligibility, terms and funding availability are determined by PacifiCan and may change.