Several Canadian cabinet ministers announced a series of initial measures aimed at providing support to businesses and workers affected by U.S. tariffs on Friday.
Ministers Dominic LeBlanc, Steven MacKinnon, Mary Ng, Rechie Valdez, and Lawrence MacAulay announced federal commitments worth over $6.5 billion.
The list includes $1 billion in additional financing through Farm Credit Canada (FCC) to help address cash flow challenges in the agriculture and food industry — similar to a package rolled out during the COVID pandemic. Finance Canada says this money will enable FCC to offer customers new term loans and additional credit lines up to $500,000. Current customers will also have the option to defer principal payments for up to 12 months on existing loans.
The interest-free portion of the federal government’s Advance Payments Program (APP) for farmers and ranchers will remain at $250,000 for the 2025 program year, rather than reverting to the $100,000 limit on April 1, announced Agriculture Minister MacAulay. The overall limit on cash advances remains at $1 million.
Agriculture and Agri-Food Canada says maintaining the interest-free limit at $250,000 will result in estimated savings of up to $65 million for over 13,000 producers in 2025.
Other measures announced Friday include the following:
- $5 billion over two years to Export Development Canada to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion.
- $500 million for the Business Development Bank of Canada to support impacted businesses with favourably priced loans.
- Temporary changes to the EI Work-Sharing Program to increase access when employers ask employees to work reduced hours due to a decrease in business activity beyond their control.
Related: Interest-free portion of Advanced Payments Program set at $250,000 for 2024
