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Source verified September 15, 2026
Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy
Support for industrial reorientation in response to U.S. tariffs
Funding available
Varies by project
Deadline
Open continuously
Location
Canada
Overview
The Strong Canada Diversification Fund — Stream 1 supports Canadian businesses affected by U.S. tariffs to adapt, reorient, and diversify their activities. It funds projects to maintain industrial capacity, create products and technologies, as well as engineering and conceptual studies.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase production or service capacity
- Develop a new product or service
- Increase operational productivity
Eligible Funding
- Varies by project
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Availability timeline
2026
Periods: 1
Activities funded
- Projects that help businesses adapt, reorient, and diversify their activities toward other markets.
- Projects aimed at maintaining and expanding Canada’s industrial capabilities.
- Projects that create products and technologies that could open new markets.
- Projects that promote productivity and the manufacturing of materials and products essential to Canada’s economic security and resilience.
Official resources
Program guide
Eligibility
Who is eligible?
- Canadian businesses hard hit by U.S. tariffs.
- Businesses in sectors significantly affected, including aluminum, automotive, forestry products, steel, and other industries.
- Small and medium-sized businesses are explicitly targeted.
Eligible expenses
- Pre-project engineering.
- Conceptual studies.
Selection criteria
- Project carried out in a sector with high trade exposure, or within a company experiencing a loss of revenue, a drop in profitability, or significant job losses.
- Large-scale project involving both upfront development costs and capital expenditures that allow the company to reorient toward other markets or products or improve its competitiveness.
- Project essential to maintaining the industrial capacity, skills, or capabilities needed for Canada’s economic and crisis management measures.
- Project that helps the company increase its capacity to meet demand in the Canadian market and accelerate commercial exports.
How to apply
- First, use the FRS Check your eligibility questionnaire.
- At the end of the questionnaire, select the option to request a consultation.
- Provide a project summary to prepare for the consultation.
- Present the project during a consultation meeting with FRS representatives.
- If FRS officers recommend it, submit a statement of interest; the form is sent by email.
Processing and Agreement
- After the statement of interest, FRS acknowledges receipt, reviews the information, and may request additional information, invite the full application, or indicate that the project will not be considered.
- The full application is subject to due diligence and benefits assessment.
- If the project passes this stage, FRS begins negotiations for a list of conditions, then develops a contribution agreement after the necessary approvals.
- After the contribution agreement is signed, the program operates on a reimbursement claim basis, with regular reporting throughout the project.
- FRS may conduct audits to verify claimed costs, declared royalties, and compliance with applicable laws during contribution agreement negotiations.
Contacts
Other components of this program
Explore related funding streams and grants that belong to the same program.
- Canada Strong Diversification Fund — Stream 2: Capital maintenanceCapital support for Canadian businesses affected by tariffs
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 Strong Canada Diversification Fund — Stream 1 supports Canadian businesses affected by U.S. tariffs to adapt, reorient, and diversify their activities. It funds projects to maintain industrial capacity, create products and technologies, as well as engineering and conceptual studies.
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:
The company must be highly exposed to the impact of U.S. tariffs.
The project must support domestic production or reorientation toward new markets.
The project must protect jobs and strengthen Canada’s long-term competitiveness.
What expenses are eligible under Canada Strong Diversification Fund — Stream 1: Adapting, pivoting and diversifying the Canadian economy?
Projects that help businesses adapt, reorient, and diversify their activities toward other markets.
Projects aimed at maintaining and expanding Canada’s industrial capabilities.
Projects that create products and technologies that could open new markets.
Projects that promote productivity and the manufacturing of materials and products essential to Canada’s economic security and resilience.
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