Quebec SMEs now have access to multiple government support programs for tariff relief

What support is available

In response to U.S. tariff impacts on Quebec businesses, federal and provincial governments have launched multiple initiatives. The support addresses several challenges SMEs face: increased supply costs, reduced sales, liquidity shortages, supply chain disruptions, and the need to find new markets. SADC and CAE serve as key entry points, with local expertise to help businesses assess their needs and connect with appropriate resources.

Major funding programs and what they offer

Canada Economic Development for the Quebec Regions (CED) administers the Regional Tariff Response Initiative (RTRI), which provides liquidity support of up to $2 million for one year to cover wages and essential operational costs. Reorientation projects—investments in automation, equipment, technology, or market diversification—can receive up to $1 million non-repayable, with repayable contributions available for larger amounts. The maximum non-repayable assistance across both categories is $3 million.

Investissement Québec offers several programs. The FORCE program provides loans up to $50 million with variable interest (0% in year one) and a moratorium on principal repayment of up to 24 months for companies generating at least 25% of U.S. revenue (for requests under $10 million) or recognized as strategic by the provincial government. PANORAMA supports market diversification with term loans of $250,000 to $1 million. Grand V funds innovation and productivity with loans starting at $250,000 and a moratorium of up to 48 months.

The Government of Quebec's Emergency Assistance Program for SMEs (PAUPME), administered through regional county municipalities, offers loans of up to $150,000 at 0% interest for the first 12 months, then 3.86%, with a 12-month moratorium and 60-month repayment term. The Business Development Bank of Canada's Pivot to Propel program provides $250,000 to $5 million for liquidity, operational pivot, or equipment financing, with customized repayment terms up to 14 years. Steel, aluminum, and forestry sectors have access to larger loans up to $50 million.

Who qualifies

Eligibility varies by program but generally targets Quebec-based SMEs with fewer than 500 employees that demonstrate tariff impacts. Most programs require evidence of viability prior to tariff imposition and a genuine need for liquidity or investment in competitiveness. For PAUPME, companies must have generated $200,000 to $2 million in annual revenue, been registered in Quebec for at least two years, shown profitability in at least one of the last two fiscal years, and generated at least 25% of 2024 revenue through U.S. exports. Companies must also show a real or anticipated revenue decline of at least 20% due to tariffs.

Employment and workforce support

Service Canada offers two complementary programs. The Shared Work program allows employers to reduce employee hours temporarily rather than conduct layoffs, with eligible workers receiving Employment Insurance benefits to offset lost income. Special temporary measures, effective until March 31, 2028, apply relaxed criteria for businesses operating at least one year. Agreements can last up to 76 weeks, extendable to 152 weeks under special measures. The Employment Maintenance Subsidy provides income supplements and training support, increasing income replacement from 55% to 70% during qualified training periods, and offers up to $1,000 per participant to cover training and administrative costs.

Next steps

Businesses should contact their regional SADC or CAE office, Investissement Québec, or their local MRC (through PME Access Network) to discuss eligibility and available options. Each program has specific requirements and timelines. Most programs are scheduled to run until March 31, 2028, making it important for affected businesses to apply promptly.