On August 25, 2026, the federal government announced a new $2 billion Canada Strong Diversification Fund as part of a $7.5B tariff-relief package. It backs shovel-ready capital-maintenance projects at tariff-impacted companies, is now open to medium-sized firms, and uses a fast-track one-step approval process effective immediately.
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Canada launches $2B Strong Diversification Fund for tariff-hit firms
Why this matters for founders
Founders running capital-intensive or manufacturing startups exposed to U.S. tariffs can apply for project funding through the fast-track process rather than the older multi-stage strategic response route. Prepare a shovel-ready capital project scope to move quickly on the one-step approval.
Source: Department of Finance Canada
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