Ford administration finalizes $1 billion emergency loan plan for sectors impacted by tariffs
Ontario Government Launches $1 Billion Emergency Loan Program for Tariff-Hit Industries
The Ford government in Ontario has announced a $1 billion emergency loan program aimed at providing relief to workers and businesses in the steel, aluminum, and auto sectors that are facing challenges due to U.S. tariffs.
Program Details
The program offers loans of up to $40 million to companies in these sectors that are significantly impacted by the tariffs. The loans are intended to cover expenses such as payroll, lease payments, and utility bills for businesses struggling with tariffs.
Eligibility Criteria
To be eligible, a business must operate in one of the following sectors: steel, aluminum, or automotive. It must also demonstrate a significant impact from the U.S. tariffs and require support for working capital needs, including payroll and essential operating costs like leases and utilities.
Application Process
The program is administered by the Ontario government through the Protect Ontario Financing Program. While detailed step-by-step application instructions have not been fully disclosed, companies can expect to apply for loans of up to $40 million within the total $1 billion fund.
Firms likely need to demonstrate tariff-related financial impacts and might work with government officials or approved agents to complete applications. Consultants and experts, including CPA teams, can assist companies by gathering required documentation and submitting claims, often starting with a brief interview to assess eligibility.
Availability and Timeline
The $1 billion loan program is not officially up and running yet, and it will take "days and weeks" before it is available to businesses. The remaining $4 billion of the $5 billion pot announced by the Ford government has not yet been detailed.
Concerns and Questions
The Canadian Federation of Independent Business has expressed concern that the program may only help big businesses, while opposition politicians have raised concerns about the protection of workers, asking for job guarantees or certainties.
The government has launched a website for businesses to determine their eligibility and set up a consultation.
[1] Ontario government news release [2] CBC News article [3] Financial Post article [4] Global News article [5] Toronto Star article
