US Tariffs Impact: Relief Programs for BC Employers

The escalating US-Canada tariff situation has placed many small and mid-size enterprises (SMEs) in British Columbia under severe economic pressure. These tariffs are not only impacting commercial activity but are also creating dire cash flow problems, forcing employers to consider difficult workforce reductions.

This blog provides practical guidance for BC SMEs, outlining available financial supports in the face of ongoing commercial uncertainty.

Financial lifelines: Government support for tariff-impacted BC businesses

Both federal and provincial governments have introduced measures to assist businesses struggling with the impacts of tariffs. Accessing these supports, which fall under BC government support for businesses, can provide crucial breathing room and form part of essential SME financial strategies during tariffs.

A. Key federal relief programs for SMEs

The Canadian government has launched several initiatives to provide liquidity and support for businesses, including SMEs.

• Export Development Canada (EDC) Trade Impact Program: This program has a $5 billion capacity to assist Canadian exporters and their suppliers by offering financing, trade credit insurance, and tools for managing foreign exchange risk. Eligibility extends to Canadian exporters or companies supplying exporters who are facing challenges due to global market shifts or trade risks. Businesses can initiate contact through an EDC export advisor or by using an online assessment tool.
• Business Development Bank of Canada (BDC) Loan Programs: BDC has made $500 million in loans available to businesses affected by tariffs. The "Pivot to Grow Loan" offers up to $2 million with favourable terms, such as interest-only payments for the first 12 months and a 72-month repayment period but is generally aimed at businesses with annual sales of $2 million or more and at least 25% of sales exported to the US.

For smaller SMEs or those not meeting these specific criteria, BDC also provides general small business loans (e.g., up to $100,000) and advisory services. These loans can be a key component of cash flow management for SMEs.

• CanExport SMEs Program: This program offers grants of up to $50,000, covering up to 50% of costs for small and medium-sized enterprises looking to diversify and develop new export markets.

Eligible businesses are typically for-profit, incorporated entities with 1 to 500 full-time equivalent employees and annual revenues between $100,000 and $100 million. The application window for projects in the 2025-2026 fiscal year is March 13, 2025, to May 31, 2025.

• Tariff Remission/Relief: The federal government has provided for the remission (refund or waiver) of some countermeasure tariffs. This includes temporary (6-month) relief for certain goods imported from the U.S. that are used in Canadian manufacturing, processing, food and beverage packaging, or to support public health and safety.

Businesses can apply through the Department of Finance but must be registered in Canada and provide detailed information as per the submission template.

• Farm Credit Canada (FCC): For businesses in the agriculture and food industries, FCC is providing $1 billion in new financing to help offset tariff-related financial pressures.

B. British Columbia Support Initiatives

The BC government is also offering programs, primarily focused on workforce adaptation and support. Accessing BC government support for businesses is a critical step.

• WorkBC: Provides free employment services, including resume assistance, job search support, and access to training programs, available both online and in-person.
• B.C. Employer Training Grant (ETG): This grant helps employers fund skills training for new or existing employees, covering up to 80% of eligible training costs, with a maximum of $10,000 per employee and $300,000 per employer annually. Priority is given to first-time applicants, small businesses, and those in regions or industries facing significant skills shortages. The forestry sector, heavily impacted by trade disputes, receives particular attention. This program is funded by the Government of Canada through the Workforce Development Agreement (WDA).
• StrongerBC Future Skills Grant: Individuals can access up to $3,500 for eligible short-term skills training for in-demand jobs at public post-secondary institutions. Applications for Fall 2025 classes are expected to open in Summer 2025.
• B.C. Small Business Venture Capital Tax Credit: Offers a 30% tax credit to encourage investment in BC small businesses, providing indirect support.
• Trade and Invest BC: Runs initiatives like the Export Navigator program and the Trade Accelerator Program (TAP) to assist businesses in diversifying into new markets.

While numerous government programs exist, navigating them can be challenging for SMEs already under pressure. Application processes can be complex and time-consuming. Furthermore, there can be a disconnect between the immediate, acute cash-flow needs for operational survival and meeting payroll or termination obligations, and the focus of many grant programs on longer-term adaptation, such as export development or training.

Loan programs from BDC or EDC are generally more aligned with immediate liquidity needs, while grants are often better suited for strategic rebuilding or upskilling of remaining staff once some stability is achieved. These are all part of SME financial strategies during tariffs.

Do you have questions about these relief programs?

With the economic uncertainty created by US tariffs, it is important that SMEs are aware of and know how to make the most of the financial support available to them.

Peninsula experts can guide you on how to leverage these measures and support you with any other HR, health & safety, or employee issue. To learn more about how our services can help your business, please call an expert at (1) 833 247-3652.