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Minister Ng highlights Budget 2021 investments in small businesses and entrepreneurs
Budget 2021 is the Government of Canada’s plan to finish the fight against COVID-19 and ensure a robust economic recovery that is sustainable and inclusive of all Canadians.
Today, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, attended a fireside chat with Dayna Spiring, President and CEO of Economic Development Winnipeg, to discuss investments in small businesses and entrepreneurs from Budget 2021: A Recovery Plan for Jobs, Growth, and Resilience.
The COVID-19 recession has disproportionately affected low-wage workers, young people, women and racialized Canadians. For businesses, it has been a two-speed recession, with some finding ways to pivot and succeed but many—especially small businesses—fighting to survive. Budget 2021 is a historic investment to finish the fight against the pandemic, address the specific wounds of the COVID-19 recession, put people first, create jobs, grow the middle class and set businesses on a track for long-term growth. Budget 2021 will ensure that Canada’s future will be healthier, more equitable, greener and more prosperous.
The discussion between Minister Ng and Ms. Spiring focused on the many measures proposed in the budget to help small businesses and entrepreneurs bridge through the pandemic and come back stronger after recovery. Minister Ng highlighted that this is the most small business–friendly budget in Canadian history. From extending emergency measures like the Canada Emergency Wage Subsidy and Canada Emergency Rent Subsidy to incentivizing rehiring in recovery through a new Canada Recovery Hiring Program, Budget 2021 includes significant investments to support businesses in getting online and hiring back workers, commits to decisive action on lowering credit card fees, and improves support for exporters.
The Government of Canada’s top priority remains protecting Canadians’ health and safety, particularly during this third wave of the pandemic and given the more aggressive variants of the virus. Vaccine rollout is under way across Canada, with federal government support in every province and territory.
Budget 2021 is a plan to bridge Canadians and Canadian businesses through the crisis and towards a robust recovery. It will support almost 500,000 new training and work opportunities, including 215,000 opportunities for youth; support businesses in our most affected sectors, such as tourism and arts and culture; and accelerate investment and digital transformation at small and medium-sized businesses. Budget 2021 is a plan that puts Canada on track to meet its commitment to create 1 million jobs by the end of the year.
Canada entered the pandemic in a strong fiscal position. This allowed the government to take quick, decisive and responsible action, supporting people and businesses, and put Canada where it needs to be for a successful and strong recovery.
Quotes
“This is the time to lean in and build back a more innovative, inclusive and sustainable future. While providing Canadians with the support they need to get through the pandemic, we need to invest now to ensure Canada has a strong recovery and is set up for long-term, sustainable and inclusive growth. By throwing our full weight behind Canadians and Canadian businesses with this budget, we are doing the most responsible thing for our economy and our future.”
– The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade
Quick facts
- Budget 2021 includes $101.4 billion over three years in proposed investments as part of the Government of Canada’s growth plan that will create good jobs and support a resilient and inclusive recovery. Key measures include:
- Extending emergency supports to bridge Canadians and Canadian businesses through to recovery, including:
- Extending the Canada Emergency Wage Subsidy, the Canada Emergency Rent Subsidy and Lockdown Support until September 25, 2021.
- Introducing the new Canada Recovery Hiring Program for eligible employers that continue to experience qualifying declines in revenues relative to before the pandemic.
- Extending the number of weeks for important income support for Canadians, such as the Canada Recovery Benefit and the Canada Recovery Caregiving Benefit.
- Supporting small and medium-sized businesses through transformative programs, such as:
- Launching the new Canada Digital Adoption Program that will directly help over 160,000 businesses adopt new technology and get online. It will provide them with the advice they need to get the most of new technology with the help of 28,000 young Canadians who will be trained to work with them.
- Allowing Canadian small businesses to fully expense up to $1.5 million in capital investments in a broad range of assets, including digital technology and intellectual property. This represents an additional $2.2 billion investment in the growth of Canada’s entrepreneurs over the next five years.
- Enhancing the Canada Small Business Financing Program:
- Increasing annual financing of $560 million, supporting approximately 2,900 additional small businesses.
- Amending the Canada Small Business Financing Act and its regulations by:
- Expanding loan class eligibility to include lending against intellectual property and start-up assets and expenses.
- Increasing the maximum loan amount from $350,000 to $500,000 and extending the loan coverage period from 10 to 15 years for equipment and leasehold improvements.
- Expanding borrower eligibility to include non-profit and charitable social enterprises.
- Introducing a new line of credit product to help with liquidity and cover short-term working capital needs.
- Supporting diverse entrepreneurs through additional investments to make our economy more inclusive, including further investments in the Women Entrepreneurship Strategy and the Black Entrepreneurship Program, and investments to support Indigenous entrepreneurs.
- Investing $30 billion over the next five years to establish a Canada-wide early learning and child care system, in partnership with provincial, territorial and Indigenous partners, which will help all families access affordable, high-quality and flexible child care, no matter where they live.
- Extending emergency supports to bridge Canadians and Canadian businesses through to recovery, including:
Innovation, Science and Economic Development Canada
