FedNor's Regional Tariff Response Initiative (RTRI): who qualifies and what it covers

A Northern Ontario program providing up to $1M non-repayable to SMEs hurt by trade tariffs — for technology, automation, supply-chain, and market-development projects, open through March 2028.

The Regional Tariff Response Initiative (RTRI) is a FedNor program, running from March 21, 2025 through March 31, 2028, that provides non-repayable contributions of up to $1 million to established Northern Ontario SMEs experiencing negative impacts from trade tariffs. It covers up to 50 percent of eligible project costs on the non-repayable side; for projects requiring more than $1 million, repayable contributions can cover up to 75 percent of eligible costs above that ceiling. Eligible activities include digitization, automation and technology integration, supply-chain optimization, market development, and reshoring of production or R&D. Retail and tourism businesses are excluded. Confirm your eligibility directly with FedNor before building a project plan around this program.

What RTRI funds

RTRI is designed to help established Northern Ontario businesses adapt to disruption caused by trade tariffs — whether that means reducing exposure to tariff-affected inputs, entering new markets, or strengthening domestic supply chains. Eligible activities confirmed by FedNor include digitization, automation, and technology integration; market diagnostics and expansion; strategic alliances and supply-chain optimization; domestic supply-chain strengthening and reshoring of production or R&D; and business support and market development services. Eligible costs cover labour, materials, capital equipment, consultancy fees, and advisory expenses. Retroactive costs going back up to 12 months before your application date may be considered, provided they did not occur before March 21, 2025.

Who qualifies

Applicants must be incorporated SMEs located and operating in Northern Ontario — Indigenous businesses are explicitly included. FedNor sets three baseline requirements: a minimum of five full-time employees; viable operations for at least three consecutive years; and evidence of tariff impact, defined as either 25 percent or more of sales in tariff-affected markets, or demonstrable negative impact from tariffs. Priority sectors include manufacturing, steel, automotive, critical minerals, mining, forestry, clean technology, bioeconomy, and agriculture. Retail businesses and tourism operators are not eligible.

The funding structure: non-repayable up to $1M, repayable above it

RTRI has two tiers. For projects up to $1 million in non-repayable funding, FedNor covers up to 50 percent of eligible costs — the business contributes the other half. For projects needing more than $1 million, the amount above that cap can come as a repayable contribution at up to 75 percent of eligible costs, with repayment terms set in the contribution agreement. As with all FedNor programs, the contribution is calibrated to the minimum amount required for the project to proceed. Confirm current budget availability with FedNor before investing in a full application.

Does a technology or automation project qualify?

Often, yes — if the project is a direct response to tariff exposure. Digitization, automation, and technology integration is listed as an eligible activity by FedNor, which can encompass deploying AI tools, automating a production or logistics process, or rebuilding an operation that previously relied on tariff-affected inputs or markets. The test is whether the technology investment is a legitimate adaptation to tariff impact, not whether the technology itself is eligible in isolation. If your operation has measurable tariff exposure and technology is part of your response plan, a conversation with a FedNor Officer is the right next step.

Is RTRI a grant or a loan?

The non-repayable portion — up to $1 million — does not need to be paid back, making it function like a grant for projects within that ceiling. Any repayable funding above the $1 million cap works like a low-cost loan, with repayment terms set in the contribution agreement. That makes RTRI meaningfully more attractive for smaller projects than programs like BSP, which is fully repayable.

How long is RTRI open, and should you apply early?

The official end date is March 31, 2028, giving businesses a planning window through the current tariff environment. However, available budget and intake conditions can change before the official end date — if demand is high, effective intake can close earlier. Contact FedNor early to understand current intake status and confirm the program is still accepting applications in your sector before building a project timeline around the deadline.

How to apply

RTRI uses a two-phase application process through FedNor's self-service portal. Before applying, contact a FedNor Officer at 1-877-333-6673 to discuss your project — this step helps you understand whether your project and timing are realistic before you invest in a full application. As with every program in our funding radar: confirm eligibility, amounts, and current intake with the program itself, because these can change.

Source: FedNor — Regional Tariff Response Initiative (RTRI), fednor.canada.ca/en/our-programs/regional-tariff-response-initiative. Program launched March 21, 2025; open through March 31, 2028. Program details, amounts, eligible activities, and intake status can change — confirm directly with FedNor at 1-877-333-6673. This is general information, not funding advice.