RTRI application guide for tariff impact and liquidity

A Regional Tariff Response Initiative (RTRI) liquidity request needs two things that tie together: records showing how tariffs affected your business and a cash-flow forecast showing the resulting funding gap. This guide uses the southern Ontario business process for its worked example. Use the rules and form for the region where you operate.

Decide whether liquidity assistance fits

Consider liquidity assistance if tariff pressure has created a temporary shortfall that threatens your Canadian operations or jobs. A new machine, certification project or entry into a new market generally belongs in a separate pivot-project budget. You can discuss both with your regional development agency. Give each cost one place in the file.

Start with the FedDev Ontario business applicant guide for southern Ontario. It describes the payroll calculation, evidence, treatment of other assistance and circumstances in which essential operating expenses may be considered. Confirm the applicable period and eligible costs before using the example below.

Build a trail from the tariff to the cash shortfall

• Identify what changed and when. Name the product or input, affected customer or supplier, market and relevant tariff or counter-tariff. If the effect came through a customer or supplier, explain that connection.

• Pick a comparable baseline. Use pre-impact invoices, order volumes or collections and adjust for seasonality or other changes where appropriate. A change in total sales alone leaves the tariff connection unclear.

• Match each claim to a record. Pair a supplier notice with before-and-after invoices, or a customer's order reduction with purchase orders and the sales ledger. Identify which records are actuals and which figures are forecasts.

• Show the effect on Canadian operations. Explain which shifts, roles or essential activities are at risk and how temporary support would help maintain them.

A forecast should show opening cash, expected collections, payroll, essential expenses, other cash obligations, financing and month-end cash. Start with a scenario before RTRI support. Use collection and payment dates rather than assuming all invoiced amounts will be received or paid that month. Disclose any public support already received or requested and show when you expect it to arrive.

Worked example for a southern Ontario business

All figures are hypothetical and in Canadian dollars. A component supplier's customer cuts orders after a tariff increase. Purchase orders and bank deposits support a change in expected collections from $245,000 to $200,000 per month. The supplier forecasts three months of pressure. Payroll is $120,000 each month and total cash outflows, including payroll, are $250,000 per month. It starts with $30,000 cash and can draw $20,000 on a credit line in month one. The example assumes no other public assistance.

• Month 1: $30,000 opening cash + $200,000 collections + $20,000 financing − $250,000 outflows = $0.

• Month 2: $0 + $200,000 − $250,000 = −$50,000.

• Month 3: −$50,000 + $200,000 − $250,000 = −$100,000.

The negative balances represent a funding gap in the forecast. They do not assume that the business can continue paying bills with a negative bank balance. Assuming the agency accepts the payroll in full, 50% × $120,000 × 3 months gives a payroll-based starting figure of $180,000. The demonstrated gap in this example is $100,000, so the payroll calculation alone does not justify requesting $180,000. The agency assesses the eligible costs, demonstrated need and applicable limits. The cash forecast includes all cash obligations, while the funding calculation uses only eligible costs.

If a wage program later covers the same employees or a customer pays earlier than expected, update both the forecast and the cost schedule. Remove overlapping costs from the request and disclose the change to the agency.

Application checklist

• Gather incorporation documents, financial statements for the last two fiscal years and the latest interim statements. Follow the regional instructions on how the statements must be prepared.

• Keep recent payroll records, a payroll summary for the applicable calculation period and a breakdown of any essential operating costs you want assessed.

• Attach tariff evidence, a cash-flow forecast with assumptions, and a schedule of other funding and available financing.

• Keep tariff payments out of the eligible liquidity cost schedule for the FedDev Ontario example. Keep foreign payroll and labour already covered by another program or a pivot project separate. Confirm how the agency treats essential expenses before counting them.

• Ask an authorized person to submit the application. Save the submitted file and confirmation.

Where to apply

In southern Ontario, follow FedDev Ontario's submission instructions. In northern Ontario, use the FedNor client portal instructions. In Quebec, contact Canada Economic Development for Quebec Regions for its application process. In other regions, find your agency through the federal RTRI directory. Forms, attachments and intake timing can differ.

If the forecast leaves a tariff-related gap and you want help organizing your evidence, explore helloDarwin’s tariff relief assessment.

Official application guidance consulted November 9, 2026.