The recent imposition of U.S. tariffs on Canadian exports has created significant challenges for businesses across the country. In response, the Canadian government has implemented a series of countermeasures and support programs to help businesses navigate these new financial pressures.
At Amica Capital Corporation, we understand how unexpected economic shifts impact small and medium-sized enterprises (SMEs). As a trusted financial consultant for Canadian businesses, we want to ensure that you have access to the right resources to manage these challenges effectively. Here’s a breakdown of the latest government initiatives designed to help your business adapt and thrive.
Government Support for Canadian Businesses
The Canadian government has introduced key financial support measures through organizations such as the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). These initiatives aim to help businesses manage cash flow constraints, explore new markets, and mitigate financial risks.
1. Trade Impact Program – Export Development Canada (EDC)
To assist Canadian exporters affected by U.S. tariffs, EDC has launched the Trade Impact Program, committing $5 billion over two years. This program is designed to:
- Provide financing to businesses looking to expand into new markets beyond the U.S.
- Mitigate risks related to currency fluctuations, non-payment, and market volatility.
- Support Canadian companies in navigating trade barriers and diversifying their international customer base.
2. Favourably Priced Loans – Business Development Bank of Canada (BDC)
For businesses directly impacted by tariffs, the BDC is offering $500 million in low-interest loans to:
- Help companies maintain liquidity and continue operations.
- Support businesses within targeted sectors and their supply chains.
- Offer advisory services to enhance financial management and market expansion strategies.
3. Farm Credit Canada (FCC) Agriculture Financing
Recognizing the unique impact on the agriculture and food industries, the government has allocated $1 billion in new financing through FCC to:
- Help agribusinesses maintain cash flow.
- Assist food producers in adjusting to new trade conditions.
- Ensure continued supply of Canadian agricultural products.
4. Enhanced EI Work-Sharing Program
For businesses struggling with reduced demand, the Employment Insurance (EI) Work-Sharing Program has been expanded to:
- Allow employees to work reduced hours while supplementing their income with EI benefits.
- Help businesses retain skilled employees without resorting to layoffs.
- Provide temporary flexibilities to increase access and program duration.
How Amica Capital Corporation Can Help
Navigating these financial support programs can be complex, and accessing the right funding at the right time is crucial for your business’s success. Amica Capital Corporation specializes in providing financial consulting and SME financial solutions, including:
- Factoring and Cash Flow Management – Ensuring your business has the liquidity needed to sustain operations.
- SME Loans and Capital Raising – Identifying and securing financial resources tailored to your business’s unique needs.
- Mergers & Acquisitions Analysis – Helping businesses explore strategic growth opportunities in a changing trade environment.
- Import/Export Factoring and Credit Insurance – Establishing LC’s and payment guarantees and eliminating risk when exporting.
With new financial pressures emerging due to U.S. tariffs, having a strong financial strategy is more important than ever. Let Amica Capital Corporation guide you in accessing government funding, optimizing your capital structure, and securing your business’s future.
Get in touch today to discuss your financing options and how we can support your business. Visit www.amicacapital.ca or contact us directly for a consultation.
