2023 Federal Budget Commentary on Supporting Small Businesses

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2023 Federal Budget Commentary on Supporting Small Businesses

March 29, 2023

On March 28, 2023, the Canadian federal government announced its budget for the 2023 fiscal year. Titled “Building a Stronger Canada Together”, the budget aims to continue Canada’s economic recovery from the COVID-19 pandemic and to invest in important social and environmental programs.

The government has recognized the critical role that small businesses play in Canada’s economy and has introduced several measures in the 2023 federal budget to support them. Here are some of the initiatives aimed at helping small businesses.

Small Business Innovation and Growth Fund: The government has created a new Small Business Innovation and Growth Fund, which will provide funding to small businesses for research and development and for expanding their operations. This program will provide small businesses with access to capital, which they can use to invest in innovation, new products, and technology to improve their competitiveness.

Canada Emergency Business Account (CEBA): The government has extended the Canada Emergency Business Account (CEBA) program until the end of 2023, providing small businesses with continued access to interest-free loans. CEBA is a program that provides small businesses with a loan of up to $60,000 to help them cover operating costs and avoid layoffs during the pandemic. The government has expanded the eligibility criteria for the program to include businesses that have been negatively impacted by COVID-19, but are not eligible for other support programs.

Hiring Credit: The budget also includes a hiring credit for small businesses, which will provide a tax credit to employers who hire new employees. The credit will be available to businesses with less than $20 million in annual revenue and will provide a tax credit of up to $1,000 per new employee, to a maximum of $100,000 per business.

Digital Transformation: The government has allocated funding to support small businesses in their digital transformation efforts. This funding will go towards providing resources and training to small businesses to help them adopt new technologies and improve their digital presence. This will enable small businesses to better compete in the digital economy and access new markets.

Overall, the government’s support for small businesses in the 2023 federal budget is aimed at helping them to recover from the economic impact of the COVID-19 pandemic and to position themselves for growth and success in the years ahead. These measures will provide small businesses with the support they need to innovate, grow, and create jobs, contributing to the strength and resilience of Canada’s economy.

To read our budget commentary in its entirety, click here.

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Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.