Ontario Together Trade Fund (OTTF) Guide

A Program to Support Trade Recovery and Growth for Ontario Businesses

Today, we’re diving into the details of the Ontario Together Trade Fund (OTTF), a new economic support program launched by the Province of Ontario, Canada. Introduced in April 2025, this initiative is designed to help Ontario businesses recover from the impact of U.S. tariffs and fuel their growth. This guide will break down everything you need to know about OTTF and how to seize this opportunity!

What is OTTF?

The Ontario Together Trade Fund (OTTF) is a financial support program established by the Ontario government to help businesses overcome trade barriers caused by high U.S. tariffs and enhance their competitiveness. Announced on April 23, 2025, this $50 million CAD fund supports Ontario companies in restructuring supply chains, expanding interprovincial trade, and entering new markets.

Key Objectives:

• Strengthen Trade Resilience: Support businesses with revenue losses of 30% or more due to U.S. tariffs.
• Restructure Supply Chains: Build manufacturing and regional supply chains within Ontario.
• Open New Markets: Diversify into interprovincial and international markets.
• Create Jobs: Maintain and expand employment in Ontario.

Note: Support for COVID-19-related initiatives (e.g., medical supplies, PPE production) was part of the previous Ontario Together Fund (OTF). OTTF focuses specifically on trade disruptions.

Key Support Areas

OTTF supports Ontario businesses in strengthening their trade and manufacturing competitiveness in the following areas:

• Business Development: Sales and marketing strategies for entering new markets (within Canada or internationally).
• Production Capacity Expansion: Facility expansions to create jobs in Ontario.
• Advanced Equipment and Facility Upgrades: Adoption of smart manufacturing equipment, robotics, and automation systems.
• Innovation and Technology Development: New product development, process improvements, and patent applications.
• Market Entry Localization: Costs for certifications, legal compliance, labeling, and product testing.
• Product Adaptation: Repurposing existing products for new industries (e.g., automotive parts to construction components).

Eligibility Criteria

To qualify for OTTF funding, businesses must meet the following criteria. Check if your company is eligible!

Basic Eligibility

• Company Location: For-profit business registered in Ontario.
• Employee Count: Minimum of 5 full-time employees (exceptions for fewer than 5 in specific cases).
• Business Sector: Manufacturing or trade-related services (e.g., steel, aluminum, automotive parts, machinery).
• Trade Impact: Priority for industries hit by U.S. tariffs with 30% or greater revenue loss (e.g., steel, automotive).

Project Requirements

• Minimum Investment: Total project cost of at least $200,000.
• Duration: Project completion within 2 years from application date.
• Innovation: Enhance competitiveness through new markets, technologies, or processes.
• Sustainability: Potential for business growth post-funding.

Priority Criteria

• Job Creation: New hires or retention of existing jobs.
• Export Potential: Plans to enter other Canadian provinces or international markets.
• Regional Economic Contribution: Strengthening Ontario’s supply chains and partnerships.

Funding Details and Structure

OTTF provides substantial financial support for trade and manufacturing projects. Below are the details on funding amounts, repayment terms, and eligible expenses.

Funding Amounts

• OTTF covers up to 75% of project costs.
• General Projects: Up to $5,000,000.
• Minimum Project Cost: $200,000.
• Examples:
  • Project cost of $1,000,000 → Up to $750,000 in funding.
  • Small businesses: Typically $200,000–$500,000.
  • Mid-sized businesses: Typically $500,000–$2,000,000.

Repayment Terms

Funding provided as grants (non-repayable) or interest-free loans.

• Grants: No repayment required if project conditions are met.
• Loans: Interest-free during the 2-year project period, repayable within 4 years thereafter.
• Incentives: Up to 30% of the loan (capped at $1.5M) may be forgiven if job creation and investment targets are met.
• Non-Compliance: Funding must be repaid if the project is abandoned or false information is provided.

Eligible Expenses

• Capital Investments: Production equipment, facility expansions, quality testing equipment.
• Research and Development (R&D): New product development, process improvements, material testing.
• Technology Adoption: Software, smart manufacturing systems, technology licenses.
• Workforce Development: Employee training, short-term expert hiring.
• Localization Costs: Certifications, legal fees, labeling, testing.

Ineligible Expenses

• Land purchases, existing loan repayments, operational costs (rent, utilities), marketing, dividends.

Payment Process

• Disbursement: Paid in stages—initial (post-contract), interim (after progress reports), and final (after completion reports).
• Method: Direct bank transfer to the company’s account, processed within 2–4 weeks of application.

Application Process

Applying for OTTF funding is straightforward but requires a structured approach. Follow these 5 steps to prepare!

Step 1: Eligibility Check

• Use the self-assessment tool on the Ontario government website (www.ontario.ca/page/ontario-together-trade-fund) to confirm eligibility.
• Required Documents: Business registration, financial statements (last 3 years), company profile.

Step 2: Consultation with Ontario Advisor

• Mandatory: Discuss your project with an OTTF advisor (email: ottf@ontario.ca).
• Post-consultation, receive a link to the Transfer Payment Ontario (TPON) system.

Step 3: TPON Registration and Application Submission

• Register company details in the TPON system.
• Complete the application: Provide company details, project plan (budget, timeline, expected outcomes), and supporting documents.
• Sample Questions:
  • What products/services will you develop/improve?
  • What equipment/technology is needed?
  • What are the estimated costs and timeline?
  • What are the job creation and economic impacts?

Step 4: Review

• Applications are evaluated by an expert panel (4–8 weeks).
• Criteria: Innovation, feasibility, economic contribution to Ontario, investment impact.
• Interviews or additional documentation may be requested.

Step 5: Contract Signing and Funding Disbursement

• Successful applicants sign a contract outlining funding amounts, payment schedules, and reporting obligations.
• Initial funding is disbursed, and the project begins with mandatory progress reports.

Application Timeline

• Start Date: April 23, 2025, with continuous intake.
• Deadline: Open until the program ends; check the Ontario government website for updates.

Early Closure and Estimated Deadlines

OTTF operates until its budget is depleted, with no fixed end date. The government uses a “rolling intake” approach, processing applications sequentially from April 23, 2025. No official end date has been announced, but the program may close early if demand exceeds the budget. The government has indicated that applications are accepted without a set deadline, suggesting that new submissions could be halted if funds run out. High demand reported by the government or media could accelerate closure. Historically, similar programs like the 2020 Ontario Together Fund (OTF) were extended with an additional $50 million when initial budgets were exhausted.

Expected Economic Impact

OTTF is anticipated to deliver the following benefits to Ontario’s economy:

• Job Creation: Sustaining and expanding local employment.
• Investment Attraction: Stimulating private and public investments.
• Export Growth: Increasing sales through interprovincial and international markets.
• Supply Chain Resilience: Building a robust, Ontario-centric manufacturing network.

Specific metrics will be shared as the program progresses.

Conclusion

The Ontario Together Trade Fund (OTTF) is a strategic initiative by the Ontario government to turn trade challenges from U.S. tariffs into opportunities. Particularly beneficial for steel, automotive, and manufacturing businesses, this fund supports supply chain restructuring, new market entry, and job creation to strengthen Ontario’s economy.

Act now! Check your eligibility on the Ontario government website (www.ontario.ca/page/ontario-together-trade-fund) and schedule a consultation with an OTTF advisor (ottf@ontario.ca). Take this chance to elevate your business!

Note: This blog is based on information available as of April 2025. Program details may change, so verify the latest information on the Ontario government’s official website.

 

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