Supporting small businesses and creating good jobs

Small and medium-sized enterprises are the backbone of the Canadian economy and the heart of our communities. That’s why the Government of Canada is proposing new measures in Budget 2022 to support small and medium-sized businesses so they can grow, innovate and stay competitive, while creating good middle-class jobs.

Prime Minister Justin Trudeau today highlighted key measures included in Budget 2022: A plan to grow our economy and make life more affordable to help small and medium-sized businesses.

Measures proposed in Budget 2022 include:

• Reducing taxes for growing Canadian small businesses ensuring that growing businesses can take advantage of Canada’s low small business tax rate until their taxable capital reaches $50 million, rather than $15 million. This will encourage small businesses to continue growing and creating jobs.
• Growth of health-focused small and medium-sized enterprises in Canada Investing $30 million to expand the Accessible and Coordinated National Health Network across Quebec, territories and Indigenous communities to help health technology companies grow, create good middle-class jobs and deliver better care to Canadians.
• Increasing Access to Canada’s Trade Remedies System providing $4.7 million over five years and $1.1 million ongoing to create a trade remedy consultation unit within the Canada Border Services Agency to help businesses understand and accessing Canada’s trade remedy system, with a focus on small and medium-sized enterprises.
• Encourage employee share ownership in a company by creating the Employee Shareholding Trust under the income tax law to facilitate the transition from private companies to employees.
• Support business recovery and growth making smart investments to minimize the impacts of changes in global trade and other disruptions on sectors such as transport, agriculture and tourism and help them increase economic activity.
• Continued consultations to reduce credit card transaction fees in a way that benefits small businesses and protects existing rewards points for consumers.

Budget 2022 proposes investments and policy actions to ensure that small and medium-sized businesses continue to drive economic growth, create good middle-class jobs, and lead global production and innovation, now and for decades to come.

Estimate

“When we support our small businesses, we support our workers, our communities and our economy. With the measures in Budget 2022, we are working to ensure that Canada’s small businesses can continue to grow, create jobs, compete and win in the changing global economy.

“Our small businesses are the heart of our communities, and supporting them is one of the most important things we can do to build a thriving economy. Budget 2022 will make it easier for them to innovate and grow, and help ensure they can continue to create more of the well-paying jobs that so many Canadians rely on.

Fast facts

• Small businesses currently enjoy a reduced federal tax rate of 9% on their first $500,000 of taxable income, compared to a general federal corporate tax rate of 15%. A company no longer has access to this reduced rate once its level of capital employed in Canada reaches $15 million.
• Budget 2022 proposes to provide $603.2 million over five years to Transport Canada to make supply chains more efficient, facilitate the movement of goods in Canada and reduce unnecessary red tape.
• Budget 2022 proposes to create the Canada Growth Fund to help businesses reduce emissions and meet Canada’s climate goals; diversify investments in the growth of low-carbon industries and technologies; and help restructure supply chains in key industries such as the natural resources sector.
• Budget 2022 announces $1 billion to create an independent federal innovation and investment agency that will help Canadian industries and businesses innovate, grow, create jobs and compete in a changing global economy.
• These investments build on the many actions the Government of Canada has taken to support small businesses and grow the economy, including:
  • Improve the Canada Small Business Financing Program, increasing annual financing to small businesses by approximately $560 million;
  • Helping small and medium-sized businesses invest in new technologies and capital projects by allowing the immediate spending of up to $1.5 million of eligible investments starting in 2021;
  • Helping small businesses grow and compete in the digital economy by launching Canada’s $4 billion Digital Adoption Program to help them grow their business online and boost their existing enterprise technology;
  • Investing in women entrepreneurs and small businesses through more than $6 billion in the Women Entrepreneurship Strategy, unlocking access to funding, resources, and developing a support ecosystem they need to succeed; and
  • Supporting Black entrepreneurs and business owners by investing $265 million in the Black Entrepreneurship Program.

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