Tariffs : Available Financial Support fo SMEs

The recent tariff war between the United States and Canada is putting many Quebec SMEs that are focused on exports under severe strain. Following the punitive tariffs imposed by Washington, the Canadian government responded with equivalent countermeasures, including a 25% surcharge on nearly CA$30 billion worth of American products. These measures created a climate of uncertainty for Quebec companies, particularly those in the manufacturing sector that heavily depend on the American market. In some regions, up to 20% of manufacturing companies do more than 70% of their sales in the United States.

This additional duty on U.S. goods has a direct impact on the profitability of Quebec exporters by increasing the cost of every container shipped to the American market. In light of this threat, governments have opted to provide active support to businesses rather than stand by. In Canada, this has taken the form of both commercial retaliation and the introduction of dedicated aid programs for the most exposed industries. In Quebec, the provincial government has chosen strong financial support for SMEs to mitigate the shock of tariffs. Premier François Legault notably announced the Frontière program to support exporting businesses whose revenue is severely affected by American customs duties (with a maximum loan of CA$50 million per company). Meanwhile, multiple other provincial and federal initiatives have been implemented to help SMEs preserve their cash flow, invest in productivity, and diversify their markets.

In this article, we review the main financial aid programs available to Quebec SMEs facing the consequences of the current trade war. From special programs of the Quebec government to federal subsidies such as CanExport, discover these tools designed to support our businesses in times of tariff crisis.

At the start of 2025, trade tensions escalated sharply. The American administration introduced 25% tariffs on steel and aluminum imported from Canada, triggering an immediate counterattack from Ottawa. As of March 13, 2025, Canada in turn imposed 25% tariffs on nearly CA$29.8 billion of American products, targeting a wide array of goods—metals, tools, industrial equipment, consumer goods, etc. These retaliatory measures are set to remain in effect as long as the United States does not lift its tariffs on Canadian aluminum and steel.

For Quebec’s exporting SMEs, the shock was sudden. Many rely heavily on the American market, especially in the manufacturing sector. For instance, a survey in the Montérégie region found that about 20% of the area’s manufacturing companies ship more than 70% of their exports to the United States. Overnight, those vital sales risk becoming less competitive because of these surcharges, threatening profit margins and jobs. Many firms fear significant financial losses if the situation persists for more than a few months.

In response to this crisis, governments adopted a dual approach: commercial retaliation on one hand, and financial aid for businesses on the other. At the federal level, in addition to retaliatory tariffs, measures have been announced (for example, more flexible work-sharing programs and easy-credit solutions through BDC and EDC). But it is primarily the Quebec government that has rolled out targeted measures to cushion the impact on its business community. Instead of merely reimbursing the affected sectors, Quebec opted to promote adaptation and resilience among its SMEs.

“We will not allow ourselves to be intimidated by these tariffs,” declared Premier Legault, emphasizing that companies must remain calm and adjust. Concretely, Quebec has established new financial aid programs that can be accessed quickly in order to support the cash flow, investment, and strategic shifts of companies affected by higher American duties. Let’s examine these different tools in detail.

The Frontière program is the key measure set up by Investissement Québec to help exporting SMEs that face serious liquidity problems because of new tariffs. Eligible manufacturing or primary-sector businesses whose commercial activities are severely impacted by the American surcharges can receive financing of up to CA$50 million per company. The program aims to provide a temporary liquidity boost (over a period of up to 12 months) so that the SME can carry on its activities and meet its obligations despite higher export costs. By stabilizing their short-term financial position, this program grants the business enough time to adapt its business model or supply chain to the new tariff barriers.

In practice, Frontière is a form of bridge financing, offered on advantageous terms and quickly processed. For example, a Quebec manufacturer of metal parts whose exports to the United States are now subject to a 25% surcharge might apply for a Frontière loan to cover its immediate shortfall in working capital while it diversifies its client portfolio or sources some of its inputs from more affordable suppliers. Frontière thus provides a real financial lifeline to get through the crisis caused by customs duties.

According to government sources, the Frontière loans are managed by Investissement Québec with a high degree of flexibility. The CA$50 million maximum reflects the desire to support larger SMEs or intermediate-sized enterprises whose exposure to the American market is particularly high. Note that these funds are loans rather than grants: they must be repaid, even if the exact terms (interest rates, schedules) have not been publicly specified. Regardless, it is an unprecedented measure by scale, indicating the severity of the situation for some Quebec companies.

Make sure to read the 2025 FRONTIERE applicant guide!

To address the structural challenge of competitiveness, the Quebec government also launched Chantier Productivité, a special branch of the ESSOR program at Investissement Québec. Chantier Productivité aims to help businesses that want to invest in improving their processes, equipment, or technologies in order to boost their productivity. Rather than merely endure the tariffs, the program encourages SMEs to become more effective and reduce per-unit costs, thus making them more resilient to external pressures.

This program offers flexible and advantageous financial support for eligible investment projects. Specifically, it can provide interest-free repayable loans for a portion of the investment, along with non-repayable contributions (grants) for the most structuring projects. For example, Quebec announced it may award a non-repayable grant to companies whose project exceeds CA$10 million and stands out in terms of productivity gains. The remainder of the financing would come in the form of a zero-interest loan, significantly reducing capital costs for the SME.

Chantier Productivité supports all projects that offer major productivity improvements. It could be the purchase of faster and more efficient machinery, automating a production line, introducing digital solutions (ERP software, robotics, etc.), or reorganizing a factory to remove inefficiencies. For instance, a textile company in Montréal that invests in automated weaving machines to double its production output per hour might be able to finance part of the purchase with this program. By enhancing its productivity, it offsets the rise in export costs caused by tariffs and positions itself to compete better in the long run.

In short, Chantier Productivité encourages SMEs to turn the crisis into an opportunity: now is the time to innovate and modernize equipment. The government helps mitigate the financial risk of these projects, under the premise that a more productive company can better withstand future economic shocks—whether from tariffs or other disruptions.

Read the Chantier Productivité applicant guide for 2025!

Introduced in autumn 2024, the Grand V initiative from Investissement Québec—also called Duo Grand V—is part of the province’s broader economic response to the tariff war. It aims to accelerate companies’ “grand shift” toward innovation and durable productivity. In practice, Grand V offers a combination of financing and technological support so SMEs can reap big productivity and competitiveness gains while adopting more sustainable practices.

Duo Grand V features two integrated elements: a flexible term loan, plus expert technological guidance. Financially, the loans start at CA$250,000, with possible repayment deferrals of up to 48 months (four years). That lengthy grace period on principal repayment allows the company to realize the investment project without immediate financial pressure, extremely helpful in an unstable period. Meanwhile, every approved company gets up to 100 hours of personalized technological support from innovation specialists to help carry out the project. This is the essence of the “Duo” concept: financing plus coaching, ensuring that the project truly delivers performance improvements.

The program is primarily designed for industrial or manufacturing businesses seeking to adopt new technologies or high-performance processes. Whether that means buying a robotic assembly line, installing AI-driven software, or engaging in collaborative R&D to develop an entirely new product, Grand V can help. It also targets all Quebec companies: from start-ups to large corporations, especially SMEs. The initiative supports varied projects: purchasing or developing innovative technologies, R&D efforts to significantly improve a product, and more. For example, an aerospace component SME in Quebec City might take out a Grand V loan to automate its quality control with optical scanning, while benefitting from expert help for a smooth technology integration.

With a CA$4.5 billion envelope spread over three years (2024–2027), the Grand V initiative is ambitious. It extends and amplifies the work Investissement Québec began in recent years (recalling the Productivité Innovation program launched in 2020 and Compétivert in 2021). In the midst of a tariff war, Grand V’s message is clear: investing in innovation is not optional—it’s vital to remain competitive internationally. Companies that seize this opportunity can strengthen their position for the long term, both in the U.S. market and globally.

Read through the 2025 Duo Grand V applicant guide!

Quebec’s reliance on the U.S. for its exports has been highlighted as a vulnerability in the ongoing tariff war. To encourage SMEs to explore other markets, Investissement Québec introduced “Panorama”, a program dedicated specifically to exporting businesses that aim to diversify their international sales beyond the United States. The goal is to reduce dependence on American customers by helping SMEs turn to the rest of Canada, Europe, Asia, and other regions worldwide.

Panorama provides flexible financing suited to exporters’ needs, along with strategic guidance from IQ’s export experts. Essentially, it supplies working capital to finance market expansion or diversification outside the United States. For instance, the program might partially fund the cost of adapting a product for European regulations, launching a sales force in Asia, or attending trade fairs and business missions in target countries.

Financing can take the form of a loan or loan guarantee backed by Investissement Québec, varying in amount depending on project size. Sources indicate it may range from CA$250,000 to over CA$1 million per project. But beyond the funding, the real value lies in the advice: participating SMEs receive help from about 60 IQ export specialists, who can provide insights into new markets (information on countries, leads to local partners, intelligence about market entry, etc.).

Imagine a Quebec agri-food SME that, until now, has primarily served the U.S. Northeast market deciding to move into Ontario or Europe. Panorama might finance the transition to produce goods that comply with European rules, while also offering resources and networks in Germany or France. Hence, even if the American door is closing somewhat, others can open with tailored assistance. Panorama gives SMEs the short-term breathing room needed to shift sales strategies and lessen the tariff war’s impact on their bottom line.

Explore the Panorama applicant guide for 2025!

Beyond the initiatives directly run by Investissement Québec, the province relies on partner organizations to push forward innovation in the manufacturing sector. One example is the Productivité Manufacturière Program, operated by Prompt (a consortium for research and innovation), which aims to support custom technological projects for improving the productivity of Quebec manufacturers. Formerly known as SIPEM, this program is intended for both manufacturing companies and the service firms essential to their production.

Productivité Manufacturière subsidizes the initial step of identifying and planning innovation projects. In concrete terms, it reimburses 50% of the cost of hiring an independent technological expert to assess the company’s production chain, identify bottlenecks or areas where technology would yield a significant advantage, and recommend a prioritized list of potential projects. The expert, pre-approved by Prompt, compiles these findings into a technological roadmap specifying, for instance, the benefits of automating certain tasks, introducing specialized software, etc. This helps the firm pinpoint exactly how and where to innovate for the best productivity return.

The program covers half of the consulting fees, up to CA$5,000 in reimbursements. Thus, if the expert’s evaluation costs CA$10,000, the SME pays only half. This assistance removes the initial financial barrier for smaller companies that don’t necessarily have the means to hire specialized consultants.

Once the expert’s report is delivered, a company may implement the roadmap with additional funding—whether from Prompt or other innovation grants (such as ESSOR, Grand V, or R&D tax credits). For example, a furniture manufacturing SME in a rural area might discover that using a digital planning system plus a CNC cutting station can shorten each order’s lead time by 30%. Prompt would pay half the cost of the study to determine that scenario, and the business could then seek financial assistance to purchase and deploy the recommended solution.

Productivité Manufacturière effectively arms SMEs with a clear and credible technology plan, devised by specialized experts and ready for funding. Amid a tariff war, raising internal productivity is one way to make up for rising external costs—and this program helps identify how to do it best.

Dive into the 2025 Chantier Productivité applicant guide!

Not all areas of Quebec are equally equipped to handle economic shocks. Some MRCs (regional county municipalities) already face challenges, and they risk suffering an even greater blow from U.S. tariffs. In response, the government revived DÉPART (Développement Économique pour la Relance des Territoires), specifically assisting companies in the hardest-hit or weakest economic zones. This program was originally aimed at helping economically struggling regions; it has since been reopened with a CA$20 million budget precisely because of the customs situation.

DÉPART’s main mission is to relax financing access for businesses in those designated MRCs. More concretely, SMEs based in the bottom quintile of the economic vitality index, as well as those located in Gaspésie–Îles-de-la-Madeleine, gain easier financing terms. This may include improved loan guarantees or lower-interest loans through local investment funds (Fonds locaux d’investissement, or FLI), or other ways to collaborate with local banks in covering risk for entrepreneurial projects in those regions.

In a tariff context, that can be decisive. For instance, a sawmill on the Côte-Nord or an agri-food plant in Gaspésie that see their profits deteriorate because of American import duties (like on lumber or certain agricultural products) may need funds to diversify or just survive. With DÉPART, they are more likely to secure loans from banks or government sources. It acts as a revitalization tool—stopping the closure of strategic local businesses and encouraging new ventures even in unfavorable times.

Hence, DÉPART does more than help individual companies: it aims to preserve local jobs and keep entire communities vibrant, especially those reliant on a single industry. The government is well aware that a tariff war’s side effects may be amplified in fragile areas, and it has adapted support to ensure that these SMEs are reached. Think of it as a form of economic equalization to ensure that financial assistance genuinely benefits those in greatest need, wherever they are across Quebec.

Review the DÉPART applicant guide for 2025!

Among the possible ways to enhance SMEs’ resilience amid trade turmoil, digital transformation stands out. E-commerce, online marketing, or AI solutions can help a company attract new clients while increasing its efficiency despite external obstacles. Hence the creation of MTL+ECOMMERCE – The Digital Accelerator, a program supported by the City of Montreal and other partners to assist SMEs in their shift toward technology and e-commerce.

MTL+Ecommerce offers partial reimbursements for certain digital projects: it covers up to 50% of eligible costs, with a maximum of CA$3,375 refunded per application after a small administrative fee. In practical terms, this typically applies to a project worth around CA$7,500. The program can cover various e-commerce or digital marketing activities, from building or improving an online store, to installing order management systems, social media marketing campaigns, analytics software integration, or conversion rate optimizations, etc.

While the program primarily targets SMEs in Montreal and the Greater Montreal area, it can also be accessed by businesses from other regions in Quebec (subject to available funds). In addition to funding, MTL+Ecommerce offers coaching, workshops, and a network of specialized consultants. For example, a small Montreal garment maker that wants to open an online store could use MTL+Ecommerce to recoup half the cost of developing its e-commerce site and its initial web marketing. Likewise, a B2B service start-up might use it to finance the integration of marketing automation tools or AI solutions.

Why is such a program important in a tariff war? Because e-commerce and digital presence help an SME broaden its clientele beyond any given geographic market. A company that’s easily found online can reach customers outside its usual territory—even within Canada itself—thus compensating for potential sales lost in the American market by tapping into clients out West or overseas. Also, productivity improvements through digital tools (CRM, optimized website, etc.) strengthen overall efficiency. MTL+Ecommerce thus contributes to modernizing Quebec SMEs and making them more agile in dealing with shifting global trade.

Discover the 2025 MTL+Ecommerce applicant guide!

In addition to Quebec’s measures, the federal government also has programs to promote market diversification and international innovation. Chief among them are the CanExport programs, administered by the Trade Commissioner Service in partnership with other agencies. Two components are particularly useful for SMEs in the current context: CanExport SME and CanExport Innovation.

CanExport SME is a grant program for Canadian SMEs that want to expand into new foreign markets. It reimburses up to 50% of expenses for eligible international business development projects, with a yearly ceiling of CA$50,000 per project (which must total between CA$20,000 and CA$100,000). Essentially, if you want to break into market X, CanExport SME can refund half your travel costs, trade show fees, market research, brochure translation, or legal consulting for a distribution agreement, up to CA$50 k annually. This program has helped hundreds of Canadian businesses attend trade fairs, send emissaries to meet prospective clients abroad, or adapt their products to meet overseas regulations. For example, a Laval software business wanting to enter Latin America could obtain financing from CanExport PME to cover part of its trade mission to Mexico and pay for a local consultant to study the market. By splitting the cost of overseas expansion, the program reduces the financial risk for SMEs, encouraging them to look beyond the U.S. market.

Browse the CanExport SME applicant guide for 2025!

CanExport Innovation, on the other hand, supports international research and development (R&D) partnerships. If your SME has an innovative technology and seeks to collaborate with a foreign partner (university, research center, or another business) to develop or adapt it, this program can help. CanExport Innovation awards up to CA$75,000 per project, covering 75% of eligible expenses involved in finding partners and finalizing an R&D partnership agreement. This includes travel (or virtual) meetings with potential foreign collaborators, translation of technical documents, legal fees for a partnership agreement, and sending prototypes abroad for feasibility testing. It doesn’t fund the actual R&D once the agreement is signed: it’s specifically for the upstream phase of partnership negotiation.

Take a look at the 2025 CanExport Innovation applicant guide!

For instance, imagine a Sherbrooke biotech that has developed a medical sensor prototype and wants to partner with a European hospital to run clinical validations and finalize its product design. CanExport Innovation could refund three-quarters of the travel costs for the team to attend a medical conference where they’ll meet the potential partner, as well as the legal fees to structure the co-development contract. This support can be decisive in pushing small Canadian firms to pursue global technology collaborations, which ultimately can open new markets and enhance domestic innovation.

Taken together, CanExport SME and CanExport Innovation round out Quebec’s programs by offering direct grants for international sales and technology ventures. When fighting a trade war with the U.S., diversifying into other regions and partnering globally are smart moves. The federal government has clearly grasped this and has significantly boosted the budgets for both programs in recent years. Quebec SMEs stand to benefit greatly: these are non-repayable grants, relatively straightforward to obtain if the project is well-prepared and aligned with the programs’ goals (geographic diversification for PME, or cross-border R&D for Innovation).

The ongoing trade war imposes major challenges on Quebec SMEs but has also prompted an extraordinary mobilization of public authorities to assist our businesses. Whether it’s about bridging a short-term liquidity shortfall, prompting a strategic investment, encouraging market expansion, or supporting cutting-edge technological adoption, all levels of government now offer appropriate financial mechanisms. These programs—Frontière, Chantier Productivité, Grand V, Panorama, Productivité Manufacturière, DÉPART, MTL+Ecommerce, CanExport, and others—form a robust safety and recovery net for Quebec’s business community.

It is crucial that entrepreneurs and SME leaders get acquainted with these measures and take full advantage of them. Eligibility criteria vary between programs, as do their methods (loan or grant, amounts, timeframes). Don’t hesitate to contact the responsible agencies (Investissement Québec, various ministries, local economic development associations) for help. Many of these initiatives can even be combined—for instance, a single company could get a Frontière loan for immediate cash flow, while also signing up for Panorama to expand in Europe and applying for Chantier Productivité to automate its production line.

Finally, remember that beyond the money, these programs often include technical and strategic guidance. Benefiting from the expertise of an export or innovation consultant can be just as vital in the long run as the funds themselves. In these uncertain times, every SME should seek to reinforce, transform, and diversify itself. Quebec’s financial aid measures have been expressly designed to help you do so—make the most of them! Together, through innovation, productivity, and the courage to conquer new markets, Quebec businesses can not only overcome the pressure of customs duties but emerge more competitive and resilient than ever.