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Guide

A $2 billion fund for larger tariff exposed businesses. Who qualifies, how much, and how to apply.

Check my eligibility Call 437-525-4210

5 minute readUpdated October 13, 2026Sources: Government of Canada

What is the Canada Strong Diversification Fund?

The Canada Strong Diversification Fund (CSDF) is a $2 billion fund announced in August 2026 and delivered through the Strategic Response Fund at Innovation, Science and Economic Development Canada. It supports tariff affected businesses in sectors such as aluminum, automotive, forest products and steel, along with other tariff impacted industries.

The two streams

Stream 1: adapting, pivoting and diversifying

Supports projects that help companies serve new markets, create new products and invest in productivity and resilience, including pre development work such as front end engineering and design studies.

Stream 2: capital maintenance

Helps businesses repair, replace or restore existing equipment and buildings so they can keep operating, for up to two years. Contributions are non repayable, with requests between $5 million and $30 million.

Who is eligible for capital maintenance?

  • Incorporated or registered in Canada and operating in Canada
  • At least 10 full time equivalent employees
  • At least $20 million in annual revenue
  • An average of at least $5 million per year in capital expenditures over the last three fiscal years
  • Direct or indirect impact from U.S. Section 338 tariffs
Smaller business?If you don’t meet these thresholds, the Regional Tariff Response Initiative offers up to $3 million in non repayable funding for SMEs with $1 million or more in revenue. Read the RTRI guide.

How to apply

Capital maintenance applicants submit an expression of interest through ISED’s online form. Intake is continuous until funding is fully committed and funding is allocated first come, first served, so early, complete submissions matter. We can prepare your expression of interest and supporting capital plan. Talk to our team.

Source: Innovation, Science and Economic Development Canada, Canada Strong Diversification Fund eligibility page, updated October 2026.

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