Federal Budget promises some improvements for food industry

When the Federal Budget was unveiled, it promised some improvements to the reductions in credit card transaction fees, a new Canada Recovery Hiring Program and a new line of credit to aid small businesses like bakeries and cafés with liquidity.

The promise to extend the rent and wage subsidies beyond June will be a welcome relief to the food industry, as smaller, “mom and pop” food industries were hit hard by rent and lease fees within the last year.

The Canada Recovery Hiring Program’s proposed subsidy would “offset a portion of the extra costs employers take on as they reopen, either by increasing wages or hours worked, or hiring more staff. This support would only be available for active employees and will be available from June 6 to November 20, 2021. Eligible employers would claim the higher of the Canada Emergency Wage Subsidy or the new proposed subsidy. The aim is to make it as easy as possible for businesses to hire new workers as the economy reopens.”

The government’s budget stated it has “a plan to help small businesses grow and expand to new markets locally, regionally, and beyond.” These investments will encourage small businesses to scale up, hire more workers, and embrace new technologies that make them more productive and competitive.

Budget 2021 proposes to improve the Canada Small Business Financing Program through amendments to the Canada Small Business Financing Act and its regulations. These proposed amendments are projected to increase annual financing by $560 million, supporting approximately 2,900 additional small businesses. They include:

• 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.
• Support women and black entrepreneurs: The government pledged to work with financial institutions to develop a voluntary code to help support the inclusion of women and other underrepresented entrepreneurs as clients in the financial sector.

For more information about the budget, click |HERE|