Ottawa investing $100 million to support small employers | HRD Canada

520,000 entrepreneurs and small businesses in rural and remote areas stand to benefit from new funding, says government

As the Donald Trump-imposed tariffs continue to hurt businesses in Canada, the federal government has announced a new $100 million initiative to support entrepreneurs and small businesses in rural and remote communities across the country.

The initiative—a collaborative effort between the Business Development Bank of Canada (BDC) and Community Futures and Community Business Development Corporations (CBDC)—aims to provide vital resources to the 520,000 entrepreneurs and small businesses operating in rural and remote areas, according to the government.

“Small businesses are the backbone of our economy, and that’s especially true in rural Nova Scotia. When local entrepreneurs have access to financing, mentorship and reliable partners, they create jobs and strengthen our communities,” said Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism). “This new partnership between BDC and Community Futures builds on our government’s decisive action to support small businesses through tariff relief and investment. Together, we’re making sure that wherever you live in Canada, you have the tools to start up, scale up and succeed.”

Business leaders across the country are calling for increased government support, improved access to capital, and meaningful tax reform as Canada prepares for its upcoming federal budget, according to a previous report from KPMG.

Last month, the federal government announced an $80-million tariff-relief fund to support more businesses feeling the impact of tariffs imposed on Canada by United States President Donald Trump.

Earlier, Ottawa also announced it is investing $450 million over the next three years through the Regional Tariff Response Initiative (RTRI), which is intended to help businesses improve productivity, expand and diversify markets, and strengthen domestic supply chains and trade resilience.

‘What Canada’s economy needs right now’

Ottawa’s latest funding comes at a crucial time, said Isabelle Hudon, President and CEO of BDC.

“This initiative with Community Futures/SADC+CAE/CBDC allows us to do what a development bank should: go where others don’t and build bridges where gaps exist,” she said. “We’re unlocking potential that’s been overlooked for too long. We believe that’s what Canada’s economy needs right now.”

Troy Dungate, President of Community Futures/SADC+CAE/CBDC, added: “Joining forces with BDC to supercharge the opportunities and resources available to entrepreneurs in rural and remote areas from coast to coast to coast is a powerful combination that will result in significant impact throughout the country for decades to come. BDC is committing to investing $100 million to bolster businesses that often face strong headwinds simply because of geography and the vast nature of our country.”

The announcement comes ahead of Small Business Week, which runs from Oct. 19 to 25.

Nearly one in five (19%) Canadian small businesses facing tariff-related costs say they will not survive more than six months if current conditions persist, according to a previous Canadian Federation of Independent Business (CFIB) report.