What businesses need to know about Manitoba’s $100-million tariff support package

The Manitoba government recently announced more than $100 million in tariff supports to help the province’s workers, businesses, and producers affected by the current trade environment.

The package covers a wide range of industries across the provincial economy, including manufacturing, agri-food, transportation, construction, wholesale trade, aerospace, forestry, steel, machinery and beverages, and combines financing programs, tax deferral relief, and targeted agricultural measures.

This article summarizes the announcement and the legal and practical considerations relevant to the measures. For details on each change and how it may affect your business, please contact a member of Fillmore Riley LLP's Business Practice. 

What’s Being Offered

• $50 million for the Manitoba Trade Resilience Loan Program, providing repayable working capital financing at low interest rates;
• $500,000 increase in the Export Support Program;
• $250,000 to enhance existing export advisory services, supporting export readiness and market development;
• $500,000 to the Canadian Manufacturers and Exporters to expand the Made-in-Manitoba initiative;
• $500,000 to support interprovincial trade missions for Manitoba alcohol producers and craft breweries;
• $13.7 million to establish a Tariff Workforce Stabilization and Youth Employment Program to provide wage subsidy supports to employers; and
• A deferral option allowing businesses to defer provincially administered tax payments, such as retail sales tax and payroll tax, for the period of September 1 to December 31, 2026.

Agricultural Sector Measures

The provincial crown corporation, Manitoba Agricultural Services Corporation (MASC), will also be adjusting several of its existing programs:

• Increasing the Operating Credit Guarantee Program limit to $3 million for individuals, corporations and partnerships; 
• Raising the guaranteed portion of loans under both the Operating Credit Guarantee Program and the Diversification Loan Guarantee Program to 33.33% (up from 25%);
• Expanding eligibility for MASC's Diversification Loan Guarantee Program to cover grain and oilseed operations, and to permit “investment in primary agricultural infrastructure in Manitoba” as an eligible purpose.
• Increasing the maximum loan amount under the Diversification Loan Guarantee Program to $5 million (up from $1.5 million).
• Working with the beekeeping industry to develop programming as the industry manages excess supply and seeks market diversification.

Beekeepers will be eligible for the agriculture business supports listed above, including the loan guarantee programs.

Legal and Practical Considerations

Several of the announced measures involve terms and mechanics that businesses will want to review before applying:

• The Trade Resilience Loan Program and the MASC guarantee changes are forms of debt, with underlying terms, covenants and security requirements. Businesses should review terms before applying and consider how new borrowing interacts with existing credit facilities and lender covenants.
• Just because tax is deferred does not mean it is no longer payable. The RST and payroll tax deferral simply gives more time for businesses (from September 1 to December 31, 2026) to pay provincially administered taxes. Deferred amounts remain payable after that window closes, so businesses should plan cash flow around the eventual payment obligation.
• Several measures, including those administered through MASC, the Export Support Program, the wage subsidy stream, the alcohol producer trade missions, and the beekeeping and honey producer supports, have limited detail available on eligibility criteria, application requirements, or how they will operate in practice. 

How We Can Help

The current international trade environment has introduced a layer of uncertainty that can be difficult for businesses to navigate on their own, from evaluating financing options to understanding how new tax and program obligations will apply to their operations. Our team is here to help you work through these issues.

If your business has questions about accessing these supports, or about the broader legal and contractual considerations that come with them, please reach out to a member of Fillmore Riley LLP’s Business, Agribusiness, or Taxation practice groups.