OTTAWA, December 4, 2009 - Canada's Economic Action Plan is delivering real results for Canadian small businesses.
"Small businesses are the backbone of our economy and employ Canadians across the country," said the Honourable Diane Ablonczy, Minister of State (Small Business and Tourism). "They account for 98 percent of businesses in our country and employ one in every six Canadians. This is why Canada's Economic Action Plan had targeted measures to help small businesses as they lead Canada into recovery."
Small and medium-sized businesses have identified access to credit and a reduction in taxes as being top-of-mind priorities. The small business tax rate was lowered to 11 percent, and the business income threshold was increased to $500 000.
Canada's Economic Action Plan included an increase in the maximum loan amount allowed under the Canada Small Business Financing (CSBF) Program to $350 000, and $500 000 for real property. Together, these measures could increase lending under the CSBF Program by some $300 million.
Canada's Economic Action Plan also includes a two-year temporary 100-percent capital cost allowance rate for computers and a two-year extension of the accelerated capital cost allowance for business investments in machinery and equipment.
"These measures help Canada's small businesses keep their hard-earned money, which they can reinvest in their businesses to help them grow," said Minister of State Ablonczy. "Our government has also helped to ease the credit crunch they have faced during the recession."
Young entrepreneurs got help from Canada's Economic Action Plan in the form of $10 million in funding for the Canadian Youth Business Foundation to help it provide loans and mentoring services. The government has also committed $15 million in annual funding to the Canada Business Network (CBN). This funding will help CBN to provide small and medium-sized businesses with access to reliable, up-to-date and relevant government information and tools.
The measures for small businesses in Canada's Economic Action Plan help them gain access to credit, give them access to government information and programs, and help them keep more of their income - benefiting the economy as a whole.
For more information on Canada's Economic Action Plan, visit Canada's Economic Action Plan website.
For further information (media only), please contact:
Catherine Godbout
Office of the Honourable Diane Ablonczy
Minister of State (Small Business and Tourism)
613-947-5856
Media Relations
Industry Canada
613-943-2502
