Faced with the economic instability caused by the threat of tariffs on Canadian products imposed by the United States, some of which could come into force today, Montreal is taking immediate action. The city is deploying a set of measures to complement those of the Quebec government, aimed at protecting its local businesses in the face of unprecedented instability. This initiative is particularly aimed at SMEs that are not eligible for assistance programs from higher levels of government. In addition, measures have been taken to promote Canadian companies as suppliers to the City of Montreal.
Easier access to over $36 million in financial assistance
Direct financial support for small and medium-sized businesses will be provided through the MTL SME Funds, with easier access to some $36 million. Faced with this exceptional situation, Montréal is refocusing its priorities to ensure that it can help as many businesses as possible. Access criteria will be relaxed, specifically to enable companies affected by the U.S. tariffs to benefit from these resources. These targeted measures are aimed at strengthening the resilience of Montreal companies in this unfavorable economic context, notably by diversifying their foreign markets.
6-month moratorium on capital repayment
Montréal announces an immediate six-month moratorium on principal and interest repayments for companies in the Fonds PME MTL portfolio directly or indirectly affected by the tariff measures. For a company with a loan balance of $120,000, this moratorium could represent $15,000 in additional liquidity over the next 6 months to help it through the crisis. Exceptionally, loan amortization of up to 84 months will also be offered to eligible companies severely impacted.
Direct support through the Business Line
Montréal is also strengthening its Montréal Business Line (514 394-1793), which will serve as a single point of contact for affected businesses. The City invites companies to contact the Business Line to be directed to the right programs, whether municipal, provincial or federal. The aim of this approach is to reduce the delays and procedures that businesses may face in accessing the assistance they need during this period of instability.
Follow-up of measures implemented with the Montreal economic ecosystem
The Ville de Montréal is also setting up a follow-up committee with its economic partners, in support of businesses, to monitor the impact of the new rates on Montreal companies and adapt measures if the situation so requires.
A second series of measures aimed at market diversification, productivity enhancement, supply chain resilience and local purchasing are currently being studied and will complement the measures announced today.
Penalties for U.S. bidders
In coordination with the Quebec government's initiative, the Ville de Montréal will apply penalties of 10% to 25% to U.S. companies bidding on future contracts. This measure will be deployed according to provincial guidelines, starting with specific sectors such as healthcare, manufacturing and information technology. The lowest bidder rule will continue to apply, but taking into account the penalty applied to U.S. bidders on future contracts.
“The tariffs represent a danger not only to the Canadian economy, but also to the U.S. economy, creating inflation on both sides of the border and disruption to supply and production chains. Montreal's economy is resilient, and we are determined to strengthen and protect it. Together with the governments of Canada and Quebec, and our partners such as PME MTL and the metropolitan clusters, we are taking action today to support affected Montreal businesses in key sectors for the metropolis. We need to pull together to stand firm and united in the face of the tariff war,” declared Mayor Valérie Plante.
“Faced with the threat of U.S. tariffs, Montreal's economy is facing a major challenge. We won't let our companies face this storm alone! After mobilizing the entire economic ecosystem, Montréal is taking action with targeted measures that complement those taken by governments. These challenges represent an opportunity to build a more self-sufficient and resilient Montreal economy. By focusing on local sourcing and the social economy, we are transforming this challenge into a springboard for the future. Montréal remains on the alert, ready to deploy further measures if the situation so requires,” said Luc Rabouin, who is responsible for economic development and higher education on the city's executive committee.
