Overview
On May 4, 2026, the Government of Canada announced the creation of a new $1 billion financing program through the Business Development Bank of Canada (“BDC“) to support Canadian steel, aluminum, and copper producing companies impacted by U.S. tariffs.
Purpose
As stated by BDC, the new program is designed to alleviate the temporary liquidity shock arising from the changing tariff landscape by addressing immediate pressures on cash flow and working capital. Its goal is to provide businesses with rapid liquidity to maintain operations, meet existing contracts, and adjust to the evolving trade environment, including helping efforts to find new markets.
Key program features
- Eligibility: This financing is available to Canadian businesses that manufacture and export products containing steel, aluminum, or copper. The program targets companies that were otherwise financially viable prior to the implementation of the tariffs, which are now facing financial pressure as a result of tariff-driven cost increases, supply chain disruptions, and shrinking profit margins.
- Financing product: BDC will offer favourable term working capital loans to support eligible businesses in amounts ranging from $2 million up to $50 million.
- Pricing: The loans will be offered at preferential interest rates.
- Repayment: Repayment terms will be over 36 months.
- Customized support: Loan sizing will be tailored to the specific needs and circumstances of each company.
Additional government support
In parallel, the Government of Canada also announced an additional $500 million in funding for the existing Regional Tariff Response Initiative which is delivered through Canada’s regional development agencies. This complementary measure is intended to support tariff‑impacted businesses across all sectors of the Canadian economy.
Next steps
Taken together, the program’s features make it a timely and practical source of liquidity. As tariff-related challenges continue to evolve and create measurable impacts across supply chains, companies should proactively assess their financing needs and engage with BDC early to determine eligibility and access available support.
Should you have any questions regarding this topic, please do not hesitate to contact a member of Miller Thomson’s Financial Services Group.
For more information on tariff-related developments, we invite you to consult our Tariffs Resource Page.
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