The economic landscape in both the U.S. and Canada remains unpredictable, with shifting trade policies, inflation concerns, and global market volatility impacting businesses. One of the most pressing challenges facing companies today is the growing strain of tariffs, which affect cross-border trade, supply chains, and overall business profitability. For small and medium-sized businesses (SMBs) in particular, these pressures make securing financial support more essential than ever. Access to funding is key to mitigating risks, sustaining operations, and driving growth amid ongoing uncertainty. 

How Tariffs Impact SMBs 

Existing tariffs on certain raw materials, manufactured goods, and consumer products are driving up costs and forcing operational adjustments in both countries. While these measures aim to support domestic industries, they can also create financial strain particularly on SMBs, which lack the flexibility and resources of large corporations. 

Higher tariffs lead to increased prices for imported materials and products, leaving SMBs with difficult choices: absorb the additional costs or pass them on to consumers, potentially reducing their competitiveness. Unlike large corporations, smaller businesses often struggle to find alternative suppliers quickly and lack the bargaining power to negotiate better terms. As a result, they are more vulnerable to price fluctuations and supply chain disruptions. 

The financial strain caused by these rising costs can undermine profit margins, forcing SMBs to downsize, cut jobs, or scale back investments in innovation and growth. Over time, these challenges make it more difficult for new businesses to get off the ground and for existing ones to stay competitive. 

The Need for Accessible Funding 

Given these challenges, access to funding is not just beneficial, it is essential. Without the right financial resources, businesses will have difficulty adapting to changing economic conditions and maintaining their growth trajectory or even viability.  

Ensuring businesses have easy access to funding is critical for several reasons. It helps manage rising costs by providing financial support that allows businesses to absorb the impact of tariffs and other operational expenses without compromising stability. It also enables companies to restructure supply chains, giving them the flexibility to explore alternative suppliers, optimize logistics, and build more resilient operations. Finally, accessible funding fuels innovation, enabling businesses to develop new products, improve efficiency, and remain competitive in an evolving market. 

The Barriers to Securing Funding 

Despite the clear need for financial support, many SMBs affected by tariffs still face significant challenges in securing funding. Common obstacles include: 

• Lack of Awareness: Many businesses do not know where to look for funding or how to navigate the application process. 

• Complex Application Processes: Complex and time-consuming application procedures create unnecessary barriers. 

• Inefficient Search Processes: Finding funding that specifically addresses tariff-related supply chain disruptions, import costs, or operational adjustments can be overwhelming, as traditional methods require businesses to sift through vast amounts of information. 

Bridging the Funding Gap 

To make funding more accessible, advisors, financial institutions, and entrepreneur-support organizations must take proactive steps to simplify and improve funding access. First, businesses need real-time, intelligent ways to find relevant funding opportunities. AI-powered funding search engines, such as Fundica, streamline the process by matching businesses with the most suitable programs, reducing the time and effort required to secure financial support. 

Beyond technology, greater awareness and education around funding opportunities are essential. Many SMBs struggle to keep up with the rapidly changing funding landscape, particularly as governments introduce new programs to help businesses manage tariff costs. Entrepreneur-support organizations play a key role in bridging this gap by increasing awareness and providing practical guidance. Offering easy-to-use funding tools, hosting informational sessions, and developing digital resources can empower businesses to take full advantage of available programs. 

Looking Ahead 

As tariffs continue to drive up costs for SMBs, access to funding has never been more important. The ability to offset rising expenses, adapt supply chains, and invest in innovation depends on securing the right financial support. Entrepreneur-support organizations, financial institutions, and advisors play a crucial role in helping SMBs navigate these challenges by connecting them with the funding they need. 

At Fundica, we make this process easier. Our AI-powered funding search engine helps organizations match their SMB clients with the most relevant funding opportunities in minutes and facilitate the application process. Book a demo today to see how Fundica can enhance your services and provide added value to both the SMBs you support and would like to support.