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Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy

Support for diversification by businesses affected by tariffs

Offered by
Innovation, Science and Economic Development Canada (ISED)
Official source: ised-isde.canada.ca

Record updated

Funding available
Varies by project
Deadline
Open continuously
Location
Canada
Who can apply
Canadian businesses, including small and medium-sized enterprises, in sectors significantly affected by U.S. tariffs: aluminum, automotive, forest products, steel and other industries exposed to the impacts of tariffs.
See full eligibility

Overview

The stream 1 of the Canada Strong Diversification Fund helps Canadian businesses affected by U.S. tariffs diversify their operations and markets. It supports product and technology development, front-end engineering and conceptual studies, among other activities.

At a glance

Funding available

Varies by project

Financing goals
  • Attract or retain talent
  • Increase production or service capacity
  • Develop a new product or service
  • Increase operational productivity
  • Conduct research and development activities
  • Optimize production processes
  • Access new markets

Eligible candidates

Location
  • Canada
Eligible Industries
All industries
Annual revenue
All revenue ranges
Organisation size
All organization sizes
Audience
All groups
Legal structures
For-profit business

Start applying for this program

Take a practical assessment to gain a clear understanding of how well this program aligns with your specific needs and long-term goals.

Availability timeline

2026
Periods: 1

Latest changes

Grant changed: application process, scope and target audience

Changed: application process, scope and target audience, eligibility.

See more

We detected changes to application process, scope and target audience, eligibility, funding terms, contact or portal details.

Official source: ised-isde.canada.ca
September 15, 2026

Eligibility

Who is eligible?

  • Canadian businesses, including small and medium-sized enterprises, in sectors significantly affected by U.S. tariffs: aluminum, automotive, forest products, steel and other industries exposed to the impacts of tariffs.
  • Corporations incorporated under the laws of Canada or by royal charter, or general or limited partnerships established under the laws of Canada, proposing to operate in Canada.

Eligible expenses

  • Front-end engineering expenses.
  • Conceptual study expenses.

Ineligible Costs and Activities

  • In-kind costs, excluded from total project costs.

Eligible geographic areas

  • Canada: recipients must propose to operate there.

Activities funded

  • Maintaining and expanding Canada's industrial capacity to stabilize the economy.
  • Creating products and technologies that could open up new markets.
  • Improving productivity and manufacturing materials and products essential to Canada's economic security and resilience.
  • Front-end activities focused on retooling and market diversification in response to the significant negative impacts of tariffs.

How to apply

  • Check the project's eligibility using the Strategic Response Fund tool available from the stream section 1.
  • If the project appears eligible, request the mandatory preliminary consultation with a Strategic Response Fund officer.

Documents Needed

  • Annual financial statements for the past three years or, for a company operating for less than three years, for its years of operation: audited by a professional, including a review engagement and a notice to reader, and certified by the chief financial officer or, in their absence, the chief executive officer.

Selection criteria

  • Priority is given to large-scale projects combining upfront development costs and capital expenditures to shift the business toward other markets or products or improve its competitiveness.
  • Priority is given to projects essential to maintaining the industrial capacity, skills or capabilities needed for Canada's economic management and crisis management measures.
  • Priority is given to projects that help the business better meet demand in the Canadian market and accelerate commercial exports.
  • Assessment of economic benefits: growth of Canadian businesses, industrial clusters and supply chains, job retention and creation, well-paying jobs and project-related revenue growth.
  • Assessment of public benefits and innovation: environmental practices, training, inclusion, social benefits, improvement or creation of industrial processes and technologies, intellectual property and productivity.

Processing and Agreement

  • The recipient enters into a long-term contribution agreement with the Government of Canada, which may last 20 years or more for a business incorporated in Canada or a partnership carrying on business in Canada.
  • The agreement specifies reporting requirements, the schedule for any repayments, the parties' obligations and the consequences of non-compliance with the agreement.

Additional information

  • The Canada Strong Diversification Fund falls under the Strategic Response Fund (SRF).

Contacts

strategicresponsefund-fondsdereponsestrategique@ised-isde.gc.ca

Official sources

ised-isde.canada.ca

Official page

Tariff relief: Canada Strong Diversification Fund

Application form

Request tariff relief for capital maintenance: Canada Strong Diversification Fund
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Frequently Asked Questions about the Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy Program

What is the Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy?

The stream 1 of the Canada Strong Diversification Fund helps Canadian businesses affected by U.S. tariffs diversify their operations and markets. It supports product and technology development, front-end engineering and conceptual studies, among other activities.

What is the deadline to apply?

The program is accepting continuous intake

Who is eligible for the Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy program?

To be eligible for the Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy program, you must: Be a Canadian business, including an SME. Operate in a sector highly exposed to the impacts of U.S. tariffs.

What expenses are eligible under Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy?

Front-end engineering expenses. Conceptual study expenses.

Who can I contact for more information about the Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy?

You can contact Innovation, Science and Economic Development Canada (ISED) by email at strategicresponsefund-fondsdereponsestrategique@ised-isde.gc.ca.

Where is the Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy available?

The Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy program is available across Canada.

Is the Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy a grant, loan, or tax credit?

Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy is a Grant and Funding