Statement - Minister Valdez kicks off Small Business Week 2024 by highlighting the Government of Canada's commitment to supporting small businesses

OTTAWA, ON, Oct. 21, 2024 /CNW/ - The Honourable Rechie Valdez, Minister of Small Business, made the following statement today in recognition of Small Business Week:

"Small Business Week is a great occasion to celebrate Canada's incredible small businesses. They may be small, but they have a huge impact. They make up 98% of all businesses in Canada, account for nearly half of the country's private sector jobs and generate at least one third of our economic output.

"Our government is taking action to ensure these businesses have the support they need to succeed today and compete in a rapidly changing business environment.

"We are reducing costs, lowering fees and boosting small businesses' bottom lines. We fulfilled our commitment to lower taxes for small businesses to 9%. We then kept taxes low for more small businesses by raising the income threshold for the small business tax rate from $15 million to $50 million, and we negotiated with Visa and Mastercard to lower credit card interchange fees by up to 27%, effective October 19, 2024. This will save eligible Canadian businesses about $1 billion over five years. We have also improved the Canada Small Business Financing Program by providing additional and more flexible loan and financing options for small businesses, while cutting the administrative burden.

"Before the end of this year, eligible small and medium-sized businesses will also receive the Canada Carbon Rebate for Small Businesses directly into their bank accounts. For example, an eligible small business in Winnipeg with 10 employees will receive $4,810, a small business in Mississauga with 50 employees will receive $20,050, and a medium-sized business in Calgary with 200 employees will receive $118,200.

"To ensure small businesses can keep up with emerging technologies and compete in an increasingly digital business environment, we've committed $2.4 billion to help secure Canada's AI advantage. This includes $100 million to help small and medium-sized businesses scale up and increase productivity by building and deploying new AI solutions. Through the Canada Digital Adoption Program, we have invested $1 billion to help over 60,000 small businesses grow their business online and boost their business technologies. 

"We are also building an inclusive economy. We are dedicated to supporting under-represented communities through historic programs like our nearly $7 billion Women Entrepreneurship Strategy, which helps women entrepreneurs access the resources they need to start up and scale up their business. We also established programs like the Black Entrepreneurship Program and the 2SLGBTQI+ Entrepreneurship Program, which are helping remove systemic barriers that entrepreneurs from under-represented groups face in accessing the resources they need.

"In July, I announced an investment of $25 million in five more venture capital (VC) fund managers as part of the inclusive growth stream of the renewed Venture Capital Catalyst Initiative committed to in Budget 2021. The inclusive growth stream will help advance equity, diversity and inclusion in the Canadian VC ecosystem by increasing access to capital for diverse fund managers and entrepreneurs.

"To encourage young Canadians to pursue entrepreneurship, in Budget 2024 we committed $60 million to Futurpreneur Canada to provide young entrepreneurs with an extra year of collateral-free lending and increase their maximum collateral-free loan from $60,000 to $75,000. On top of this, young entrepreneurs that have been in business for up to two years will now be eligible for Futurpreneur loans. Futurpreneur's Side Hustle Program will also increase its loans from $15,000 to $25,000.

"I would like to take this moment to express my sincere appreciation for all of Canada's small business owners. Investing in diverse entrepreneurs is among the most meaningful actions we can take to build a strong, inclusive economy. We remain committed to supporting you as you adapt and strive for continued success.

"I invite all Canadians to join me in supporting our local businesses during Small Business Week and to keep doing so every week thereafter. Together, we will build a strong and resilient economy for all Canadians."

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SOURCE Innovation, Science and Economic Development Canada

Contacts: Callie Franson, Communications Advisor, Office of the Minister of Small Business, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]