PM announces more money for small businesses
Feds double revenue limit of Canada Small Business Financing Program to $10 million
Prime Minister Stephen Harper says the federal government plans to make it a little easier for small businesses to access certain financing.
Most companies with gross annual revenue of $10 million or less – up from $5 million – will now be eligible under the Canada Small Business Financing Program, and can borrow as much as $500,000 each.
The changes will allow more small businesses to borrow money to buy or improve land or buildings.
As reported by the Canadian Press, Harper made the announcement in St. Catharines, Ont., on January 23.
Prime Minister Harper said the program, which aims to help new businesses get started and existing ones to grow, will help create jobs.
Laura Jones, the executive vice-president of the Canadian Federation of Independent Business (CFIB) – and who was in attendance with the Prime Minister during the announcement – agreed. “There’s so much frustration with the banks in terms of their risk aversion around lending to small businesses. I think this is absolutely going to help with that,” she told reporters in St. Catharines after the announcement. The lack of access to financing is a serious limit to growth for business owners, she said. A CFIB survey found over 30 per cent of businesses get help from family. “A lot of businesses borrow money from family, they take risks that most of us are not prepared to take,” Jones said. “Most of us don’t want to do that. So increasing the options available is nothing but good news.”