Widened eligibility announced for Protect Ontario Financing Program (POFP)
Ontario employers hit by the latest U.S. import ban on Canadian alcohol, dairy products and motorcycles can now seek provincial tariff relief loans to cover payroll, after the province widened eligibility for its Protect Ontario Financing Program (POFP).
The Ontario government announced the change on Sept. 29 – the day the ban took effect – and is also opening its Ontario Together Trade Fund to the same sectors.
"As the U.S. administration continues to threaten Ontario's leading industries, our government remains steadfast in its commitment to protect the economy, defend our workers and lay the foundation for a strong and stable future," says Vic Fedeli, Ontario's Minister of Economic Development, Job Creation and Trade.
The ban adds to 50 per cent tariffs Washington imposed on a broad range of Canadian goods in August 2026 under section 338 of the U.S. Tariff Act of 1930, the province says.
Protect Ontario Financing Program
The $1-billion POFP offers term loans for payroll, leases, utilities and other working capital costs. Loans start at $250,000 and can be repaid over up to 72 months.
Loans may carry interest up to the market prime rate and be principal-free for up to 12 months, at the province's discretion. Equipment, property, refinancing and relocation costs are not covered.
Newly eligible sectors include most Canadian alcoholic beverages, certain dairy products such as whey, and motorcycles with engines over 800cc. Steel, aluminum, copper and auto businesses facing section 232 tariffs remain eligible, and the change follows an earlier expansion of Ontario's tariff support programs in September.
Headcount and payroll strain drive eligibility
According to the government, a business must employ at least 10 full-time employees in Ontario, earn at least $2 million in annual revenue and have at least three years of operations and financial statements.
Applicants must show material working capital challenges tied to the tariffs, such as difficulty meeting payroll. They must also demonstrate they have already tried federal options or faced significant obstacles accessing them.
Not-for-profits, charities and start-ups are excluded. Loans can be stacked with federal programs, and applications undergo third-party due diligence.
What’s next for HR leaders?
Craig Peters, founder and CEO of Maverick Distillery in Oakville, Ont., says the distillery typically sent about 20 to 25 per cent of its product to the U.S., according to Global News.
"It'll probably be a year or two or three before we rebound from the channel of business we're losing," he says.
Richard Alexander, president of national industry association Beer Canada, says the wider brewing industry is largely domestic, Global News reports. "But for the Canadian brewers who have spent years building customers in the United States, tonight's ban turns a 50 percent tariff into a closed border, with no exemption under CUSMA. For those businesses, this is serious," he says in a statement, referring to the Canada-United States-Mexico Agreement.
Suffering from tariff challenges, Stelco Holdings Inc. announced its plan to lay off up to 500 workers.
