CSDF Stream 2: up to $30M to keep your operations moving

Your equipment still needs to run. Your team still has orders to deliver. When U.S. tariffs put pressure on your business, maintaining the assets behind your production can become a difficult investment decision. CSDF Stream 2 funding could help eligible Canadian businesses keep that work moving.

The Canada Strong Diversification Fund (CSDF), delivered through the Strategic Response Fund, offers a capital maintenance stream for businesses affected by U.S. Section 338 tariffs. Funding requests range from $5 million to $30 million in non-repayable support for up to two years. See the official Stream 2 criteria.

Put essential equipment back on your investment agenda

A production line, a critical machine, a building your operations rely on: these assets are central to what your business can deliver. If tariff disruption has made you reconsider necessary repairs or replacements, capital maintenance funding deserves a place in the conversation.

Stream 2 focuses on repairing, replacing or restoring existing equipment and buildings to sustain operations. Eligible costs are limited to necessary, reasonable capitalized equipment and building costs. The opportunity is to support the capacity you already depend on while your business works through trade disruption.

Start with the asset and its role in your operation. What work is needed? What would completing it preserve? What happens to your production plan if you delay? Clear answers turn a maintenance concern into a project your finance and operations teams can assess together.

A fresh reason to revisit CSDF Stream 2 funding

The current criteria ask for capital expenditure history for the last three fiscal years, without listing a minimum historical spending amount. If the earlier $5 million annual-average CAPEX requirement stopped your review, take another look. Your recent spending history still needs to be documented.

That change creates a reason to reassess a project you previously set aside. The minimum funding request remains $5 million, and the other eligibility criteria still apply. Read our CSDF Stream 2 eligibility update for the distinction between historical spending and the support requested.

Could your business be a fit?

• Your organization is incorporated or registered in Canada and carries on business here.

• You have at least 10 full-time-equivalent employees and at least $20 million in annual revenue.

• You can demonstrate a direct or indirect impact from U.S. Section 338 tariffs.

• You have a capital maintenance proposal and a funding request within the $5–30 million range.

The published sectors include wood and paper, plastics, ICT, machinery, electrical equipment and furniture manufacturing, as well as chemicals, food and beverage, textiles and apparel. Other highly tariff-affected industries may also be considered. Check your sector and project against the current official criteria.

Turn a maintenance need into a funding conversation

Start your internal review with a clear project. Bring Finance and Operations together around three practical questions:

• What are we maintaining? Identify the existing equipment or building and describe the repair, replacement or restoration.

• Why does it matter now? Connect the operational need to the tariff disruption affecting your business, using records your team can support.

• What would the project require? Outline the spending, timing and resources needed to carry out the work.

For example, a manufacturer might review whether replacing a worn component in an existing production system belongs in a broader capital maintenance proposal. Describe the work and its purpose, then confirm the accounting treatment and program fit. This is a project-planning example, not a pre-approved expense.

Once the scope is clear, use our CSDF Stream 2 application preparation guide to organize the CAPEX history, tariff evidence and budget behind your proposal.

Bring your project to helloDarwin

Funding research is more useful when it starts with your business priorities. helloDarwin combines funding expertise and digital discovery tools to help Canadian organizations find and understand programs that may fit their plans.

Share your industry, location, project budget and the work you want to carry out. We can help you explore relevant funding options and clarify the questions your team should resolve next. Approval remains with the program.

To start with your business context, explore helloDarwin’s tariff relief support or use the funding form in this article.

Questions about CSDF capital maintenance funding

Is CSDF Stream 2 funding repayable?

The official program page describes Stream 2 support as non-repayable. Your organization must still meet the eligibility requirements and the conditions in its contribution agreement. The published request range does not establish a reimbursement rate or mean every project receives the maximum amount.

Can a smaller equipment project qualify?

The current minimum funding request is $5 million. Review that scale before treating Stream 2 as the route for a smaller purchase. Your equipment project may be better suited to another program; compare options against the actual work, budget, location and timing.

What if we spent less than $5 million a year on CAPEX?

The current published criteria require three years of spending history without listing a minimum historical CAPEX amount. A lower historical average is a reason to review the current rules, rather than automatically stop. It does not remove the revenue, staffing, tariff-impact or funding-request requirements.

When should we explore the opportunity?

The official page describes continuous intake until funding is committed, with allocation on a first-come, first-served basis. If your project may fit, begin the review while your team develops its investment plan. Use the official program page to check intake information and access the expression of interest.

Keep your next capital maintenance decision moving

An essential investment deserves a clear view of the funding options. If tariff disruption is putting pressure on the equipment or facilities behind your operations, bring the project into focus and test its fit with CSDF Stream 2.

Looking beyond this stream? Explore manufacturing grants and funding in Canada to compare other options for your business.

Official English and French program criteria checked November 13, 2026. Both program pages display a modification date of November 10, 2026. Recheck the official requirements before applying.