ORONTO – August 13, 2025 — The Ontario government has launched the Protect Ontario Financing Program, committing $1 billion in loan support to businesses hit by steep U.S. tariffs in the steel, aluminum, and auto sectors. The initiative is the first phase of the $5 billion Protecting Ontario Account announced in the 2025 provincial budget, aimed at safeguarding workers and preserving critical supply chains.
“Our government is leaving no stone unturned in our efforts to protect workers and businesses from the economic challenges facing Ontario,” said Peter Bethlenfalvy, Minister of Finance. “The Protect Ontario Financing Program will help keep workers on the job in sectors that are being hit hard by tariffs while building a more resilient and self-reliant Ontario economy for the long term.”
Loan Support to Keep Businesses Operating
The program will provide Ontario-based companies impacted by U.S. Section 232 tariffs with liquidity support to cover operational expenses such as payroll, lease payments, and utilities. Eligible businesses can apply for loans in addition to federal relief programs like loan guarantees, with applications subject to rigorous assessment to ensure responsible use of taxpayer funds.
“This funding will help businesses avoid closures and layoffs as well as protect critical supply chains in the face of U.S. tariffs and economic uncertainty,” Bethlenfalvy said.
Vic Fedeli, Minister of Economic Development, Job Creation and Trade, emphasized the urgency of the measure. “The tariffs levied by the U.S. government have left Ontario’s steel, aluminum, and auto sectors exposed to unprecedented challenges,” Fedeli said. “Through the Protect Ontario Financing Program, our government will provide $1 billion in critical relief to protect workers and businesses at the front lines of our economy, ensuring that critical supply chains are equipped to weather the uncertainty of today, while building resilience to seize the opportunities of tomorrow.”
Streamlined Application Process
The province has launched a dedicated website for affected companies to check eligibility and access program details. The site features an online tool for businesses to assess their preliminary eligibility. Those meeting initial requirements will be contacted for further discussions and guidance on completing their applications.
A third-party financial agent will be hired to process applications from businesses that pass the initial screening, ensuring what the government describes as an “agile and flexible” approach to delivering aid quickly.
Targeted Relief for Key Sectors
The Protect Ontario Financing Program targets industries most affected by U.S. Section 232 tariffs, which allow the U.S. president to impose trade measures on goods deemed to threaten national security. Using this authority, the U.S. has placed tariffs on Canadian steel, aluminum, and auto materials — measures Ontario officials call “unjustified” and “harmful to both sides of the border.”
These tariffs, combined with broader trade uncertainty, have created pressures such as reduced sales, hiring slowdowns, and shrinking margins, potentially leading to production cuts, shorter work hours, or job losses. Liquidity challenges have left many firms in need of direct financial support to stay operational.
Ontario plays a central role in Canada’s manufacturing base, particularly in steel production. The province is home to three major producers and a supply chain supporting 16,500 workers. Its aluminum and auto industries are also deeply integrated with U.S. supply chains, making them particularly vulnerable to tariff-related disruptions.
Federal Programs Complement Provincial Aid
The provincial initiative complements federal programs designed to mitigate the impact of tariffs, including Export Development Canada’s Tariff Impact Program, the Business Development Bank of Canada’s Pivot to Grow Program, and the Large Enterprise Tariff Loan Facility.
Economic Resilience as a Policy Goal
The Ontario government says this $1 billion package is part of a broader strategy to bolster economic resilience in the face of external shocks, including trade disputes and geopolitical uncertainty. Officials hope the program will not only stabilize affected industries but also help them adapt for long-term competitiveness.
“The steel, aluminum, and auto sectors are vital to Ontario’s economy and to Canada’s position as a secure, reliable supplier to the North American market,” Bethlenfalvy said. “By helping these sectors weather the current storm, we’re also investing in the province’s future prosperity.”
The Protect Ontario Financing Program is now open for preliminary eligibility assessments, with further details available on the government’s website. Businesses in eligible sectors are encouraged to apply promptly to ensure timely access to relief funds.