The Ontario government is investing more than $500,000 to protect tariff-impacted workers and businesses in the Municipality of Clarington.
The province is proving $529,358 through the Ontario Together Trade Fund (OTTF) to help Cargowall Limited increase resilience, build capacity and re-shore critical supply chains to Ontario, according to Todd McCarthy, MPP for Durham Riding.
Through this project, Cargowall is investing $5,293,579 to install two automated roll forming lines to produce struts and guardrails for commercial construction of hospitals and data centers in addition to highway guardrails across Canada. The investment will create 14 new, good-paying jobs and protect 29 existing positions across Durham Region.
“Through the Ontario Together Trade Fund, our government is stepping up for the businesses in our community who’ve been directly affected by U.S. tariffs,” said McCarthy.
The Ontario Together Trade Fund (OTTF) provides financial support to help businesses near-term investments so they can serve more interprovincial customers, develop new markets and re-shore critical supply chains in the face of U.S. tariffs. With a focus on small and medium enterprises (SMEs), the program will help businesses, build local capacity, enhance trade resiliency, and make the necessary investments to successfully expand into new markets.
Projects must address the impacts of U.S. trade disruptions and align with Ontario’s key economic priorities, including:
- Trade diversity: Diversifying sales portfolios: Expanding market reach to new markets, with a focus on interprovincial trade.
- Trade security: Enhancing competitiveness: Increasing manufacturing capacity and capabilities and increasing profitability through investments in advanced technology and innovative processes.
- Contributing to regional and sectoral ecosystems: Strengthening Ontario’s supply chains through reshoring and efforts to procure more equipment and supplies from Ontario and Canada.
- Creating and or retaining jobs: The types of support available includes funding and complementary supports and services.
Funding may be available to businesses operating within Ontario that meet the following requirements:
- Make an investment to enhance domestic competitiveness build capacity and local supply chain in Ontario, or reshoring pivot operations to manufacture less trade exposed goods
- Create and/or secure jobs in Ontario
- Other activities required to diversify revenue streams
- Invest at least $200,000 in eligible project costs
- Locate in a community in Ontario during the project period
- Complete the project within 2 years
- Demonstrate all financing will be in place by the project start date
A project is a distinct undertaking, separate from ongoing operations and that will result in benefits to the organization such as access to new markets.
Priority will be given to projects that aim to capitalize on domestic market opportunities and address gaps in Ontario’s supply chain caused by potential trade barriers and supply disruptions.
Eligibility
The fund supports for-profit businesses (legal entity or limited partnership) registered to carry out business in Ontario.
To be eligible, businesses need to:
- Operate within Ontario
- Have at least three years of operations/financial statements (refer to Operating Experience section in program guidelines to determine financial statement requirements)
- Employ at least 5 full time equivalent (FTE’s) active employees
- Demonstrate any of the following impacts due to the imposition of U.S. tariffs:
-operates in a sector extensively targeted by U.S. tariffs (for example, steel sector, auto sector, aluminum)
-significant exposure to trade risk (for example, revenue loss of 30% or higher), or pivoting operations to supply a customer that is looking to replace a current supplier due to tariffs
In exceptional circumstances and on a case-by-case basis, applicants that do not meet the eligibility parameters may be considered if they have supporting evidence of a project demonstrating exceptional benefit to Ontario and aligned with Ontario government priorities.
Ineligible projects include:
- ongoing operations including maintenance and capital replacement (exact replacements are not eligible, upgraded technology/equipment would be considered eligible)
- refinancing of existing business operations.
- acquisitions and buyout
- restructuring, or relocating to other jurisdictions within Ontario
- electricity projects
- waste management/primary recycling
- hospitality projects (hotels and restaurants)
Ineligible applicants include:
- not-for-profit organizations/associations/charities
- sole proprietors
- retail
- construction companies providing primary construction services (production of construction products is eligible)
- providers of personal services
- consulting firms
Types of support available:
The OTTF is designed to provide support to small and medium-sized businesses to mitigate the effects of U.S. tariffs.
For most eligible businesses, that support means grants or loans in the range of 10-20% of eligible costs to a maximum of $5 million.
Projects will only be considered for the maximum funding of 75% of eligible costs if the project can demonstrate exceptional benefits to Ontario and is aligned with government priorities.
Loans will be interest free during the project period (up to two years) typically with a 4 year pay-back period. If you achieve your investment and job targets, up to 30% of the loan (to a maximum of $1.5 million) may be forgiven. Applicants will be required to enter into a loan agreement and provide security satisfactory to Ontario.
OTTF offers conditional funding to support eligible project activities, including:
- business development, such as market diversification and sales expansion
- increasing capacity and creating and securing jobs in Ontario
- procurement of advanced equipment and facility modification to enhance domestic manufacturing, support reshoring and growing Ontario’s supply chain
- development of innovative technologies to boost the competitiveness of Ontario’s production and manufacturing capacity
localization for new markets (for example, certification, legal, labelling, testing costs) - modification of existing products to enter new sectors (for example, pivoting production from automotive fasteners to construction fasteners)
- increasing the resiliency of Ontario’s economy in response to trade related challenges, such as purchasing equipment and materials from local suppliers or shifting sales to non-U.S. markets
Eligible cost categories:
- facilities and infrastructure
- equipment and machinery
- one-time labour
- materials
- specialized expertise
- training and talent costs
- permits and fees
- new market access
Complementary supports and services are available when you submit a completed application. This could include:
Advisory services: Access to expert guidance and support to navigate government programs and services.
Assistance with compliance approvals: Support for processes such as obtaining necessary Ontario approvals and Ontario compliance certifications.
Accessing skills and talent: Access to programs, services and information that facilitate the acquisition of skilled personnel and talent that are crucial for the project’s success.
These services are available for the duration of your project regardless of the funding outcome. Services will be coordinated by working with partner ministries until they are delivered, closed-out or finalized.
Application deadlines and decisions
The application intake period will be open on April 23, 2025. The intake period is continuous which means applicants can submit their application any time while the program is open.
Registration on TPON and consulting with Ontario Advisor regarding your application is required.
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