Regional Tariff Response Initiative (RTRI): What Business Costs Are Covered?

Tariffs and trade disruptions can make it harder for Canadian businesses to stay competitive. In British Columbia, the Regional Tariff Response Initiative (RTRI) helps organizations support small- and medium-sized enterprises (SMEs) facing these challenges. RTRI provides funding for projects that improve productivity, strengthen supply chains, and help businesses reach new markets. If you’re a not-for-profit supporting SMEs, it’s important to know which business costs RTRI covers so you can build a strong application.

RTRI is a federal program delivered in B.C. by Pacific Economic Development Canada (PacifiCan). It offers non-repayable contributions of up to $10 million for eligible, non-commercial projects. Applications are open until December 31, 2027, or until funds run out.

What Is the Regional Tariff Response Initiative in B.C.?

The Regional Tariff Response Initiative (RTRI) in British Columbia — Not-for-profit stream supports organizations that help SMEs adapt to tariff pressures and global trade changes.

Key program facts:

Who delivers it: Pacific Economic Development Canada (PacifiCan)
Who it’s for:
- Not-for-profit organizations that support SMEs
- (Other streams exist for for-profit SMEs, but this article focuses on not-for-profits)
Funding type: Non-repayable contribution
Maximum funding: Up to $10,000,000 per project
Cost sharing:
- At least 10% must come from non-PacifiCan sources
- Total government assistance (all levels combined) can cover up to 75% of eligible costs for most projects. For not-for-profits, PacifiCan may increase this to 100% in exceptional cases, but applicants should not assume full coverage. Always check the latest PacifiCan guidelines.
Project end date: All projects must finish by March 31, 2028

What Business Costs Are Covered by RTRI?

RTRI does not cover everyday operating expenses. It funds project-based costs that help SMEs deal with tariffs by improving productivity, building stronger supply chains, and entering new markets. For not-for-profits, this usually means costs related to delivering programs or services for SMEs.

Eligible Cost Categories

PacifiCan reviews each project individually, but RTRI funding in B.C. usually covers these eligible business costs when they are directly tied to the approved project:

1. Productivity and Process Improvement Costs

Buying new technology or systems that lower costs
Digital tools that make SME operations smoother
Automation or changes to how work is done

2. Supply Chain Resilience Expenses

Projects that help SMEs find new suppliers
Mapping and redesigning supply chains to avoid tariffs
Shared infrastructure or platforms that cut input costs

3. Market Diversification and Export Readiness

Programs that help SMEs enter new Canadian or international markets
Market research and trade data analysis
Creating export strategies or commercialization plans

4. Program Delivery and Project Labour

Staff salaries and benefits for people working on the RTRI project
Fees for outside experts or consultants
Training costs linked to the project’s results

5. Equipment and Capital Costs (Project-Specific)

Equipment needed for the project or shared services
Technology purchases directly tied to productivity or supply chain improvements

You can use GrantHub’s eligibility matcher to quickly filter programs like RTRI by location, organization type, and project focus.

Costs That Are Usually Not Covered

It’s important to know what RTRI does not fund. RTRI funding generally does not cover:

Ongoing operating costs not linked to the project
Debt repayment or refinancing
Costs spent before PacifiCan approves the project
Activities that only create profit for the applicant

Always check with PacifiCan for the latest list of exclusions before you finalize your budget.

How to Apply for RTRI Funding

Applying for RTRI funding takes planning. Here are some steps to help you prepare a strong application:

Define your project: Clearly describe what your project will do and how it will help SMEs handle tariff challenges.
List your costs: Break down your budget by showing how each cost connects to project activities and outcomes.
Secure non-federal funding: Make sure at least 10% of your project costs come from sources other than PacifiCan.
Gather documents: Collect supporting documents, like letters of support, financial statements, and project timelines.
Check eligibility: Review PacifiCan’s guidelines to confirm your project and costs meet the requirements.

GrantHub’s platform can help you track deadlines, compare funding options, and organize your application documents.

Common Mistakes to Avoid

1. Including regular operating costs
RTRI is not for general operations. Every cost must connect directly to the project.

2. Forgetting the 10% non-PacifiCan contribution
At least 10% of your funding must come from other sources. Missing this can delay approval.

3. Using vague cost descriptions
Be specific. For example, instead of “program support,” list the exact activity or item.

4. Assuming all equipment is eligible
Only equipment essential to the project is covered. Extras are often rejected.

How RTRI Supports Not-for-Profits

Not-for-profit organizations play a key role in helping SMEs adjust to trade changes. RTRI funding can help these organizations deliver targeted programs, provide training, and invest in shared resources that benefit multiple businesses. By focusing on project-based costs, not-for-profits can make a bigger impact and show clear results to funders.

When planning your project, make sure to:

Align your activities with RTRI’s goals (productivity, supply chains, and market access)
Track project outcomes, such as the number of SMEs helped or new markets reached
Use clear reporting to show how the funding supports SMEs

GrantHub lists many programs like RTRI, making it easier to compare funding options for not-for-profits.

Frequently Asked Questions

Q: Can RTRI cover staff salaries for a not-for-profit?
Yes, if the staff are working directly on the approved RTRI project and their roles are clearly listed in the budget.

Q: Is RTRI funding repayable in British Columbia?
No, for not-for-profit projects in B.C., RTRI funding is non-repayable.

Q: Can RTRI funding be combined with other grants?
Yes. Total government assistance can cover up to 75% of eligible costs for most projects, and up to 100% for some not-for-profits in special cases. All funding sources must be listed.

Q: Does RTRI fund individual SMEs directly?
Not under the not-for-profit stream. Funding goes to organizations that deliver projects for multiple SMEs.

Q: Is there a fixed application deadline?
No. Applications are accepted until December 31, 2027, or until funds are used.

GrantHub tracks many active grant programs across Canada — including RTRI and other trade and productivity funding — so you can find the right fit for your organization.

How to Use Trade Data and Market Intelligence to Find Export Opportunities
How to Use Federal Trade Tools to Research Tariffs and Buyers
How Trade Agreements Like CETA and CUSMA Affect Canadian Agri-Food Businesses

Next Steps

If you’re interested in RTRI, start by matching your project costs to clear goals like better productivity or stronger supply chains. Good alignment makes approval more likely. GrantHub can help you find RTRI and similar programs, compare rules, and prepare your application.

Regional Tariff Response Initiative (RTRI): What Business Costs Are Covered?