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Small business to get improved access to financing


January 23, 2015
By Canadian Pizza

Topics
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Jan. 23, 2015, St. Catharines, Ont. – The federal
government wants to make it easier for small businesses to apply for financing
and get larger loans to purchase or improve their land and buildings.

 20150122_1040x585_sub

Jan. 23, 2015, St. Catharines, Ont. – The federal
government wants to make it easier for small businesses to apply for financing
and get larger loans to purchase or improve their land and buildings.

To this end, it will make changes to the Canada Small Business
Financing Program. These measures will enhance the ability of small businesses
across Canada to grow their businesses and create jobs, said a news release
from the Prime Minister’s Office. The Prime Minister made the announcement in
St. Catharines, Ont.

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The changes to the program will make loans available to more
firms by increasing the revenue threshold under which a small business can
apply for the program, and will support business startup and growth by
increasing the maximum loan amount and the maximum term length for loans
financing the purchase or improvement of land and buildings.

The Canada Small Business Financing Program helps new
businesses get started and helps established firms make improvements and
expand; improves access to loans that would not otherwise be available to small
businesses; and stimulates economic growth and creates jobs for Canadians.
Since 2006, the Small Business Financing Program has provided over 50,000 loans
to small businesses. While Industry Canada administers the program, private
sector financial institutions are responsible for all credit decisions and the
funds loaned are those of the lenders.

These improvements will be implemented once the supporting
legislation and regulations are passed, said the release.

In 2014, the government announced a New Small Business Job
Credit, intended to lower small businesses’ Employment Insurance premiums;
launched the Business Innovation Access Program to help small and medium-sized
businesses access business and technical services to get innovative products
and services to market faster; and concluded negotiations on both the
Canada-European Union Trade Agreement and the Canada-Korea Free Trade
Agreement.

 

Prime
Minister Stephen Harper today announced the Government’s intent to make
changes to the Canada Small Business Financing Program, which will
allow more small businesses to apply and will make larger loans
available for small businesses to purchase or improve their land or
buildings. These measures will enhance the ability of small businesses
across Canada to grow their businesses and create jobs. The Prime
Minister made the announcement at Framecraft Ltd. He was joined by Rick
Dykstra, Member of Parliament for St. Catharines, and Dean Allison,
Member of Parliament for Niagara West-Glanbrook.

The changes to the program will make loans available to more firms by
increasing the revenue threshold under which a small business can apply
for the program, and will support business start-up and growth by
increasing the maximum loan amount and the maximum term length for loans
financing the purchase or improvement of land and buildings.

This is one of several measures that our Government is taking to help
small businesses across the country grow and prosper. Other recent
examples include introducing the New Small Business Job Credit in 2014
which will lower small businesses’ Employment Insurance premiums;
launching the Business Innovation Access Program in 2014 to help small-
and medium-sized businesses access the business and technical services
they need to get innovative products and services to market faster; and
concluding negotiations on both the Canada-European Union Trade
Agreement and the Canada-Korea Free Trade Agreement which will generate
billions of dollars in additional opportunities for Canadian exporters
and job creators.

Our Government has also taken action to cut red tape. Since it came
into effect in 2012, the Red Tape Reduction Action Plan has provided a
successful, system-wide control on the growth of regulatory red tape
impacting business. To date, the Plan’s One-for-One Rule has resulted in
over $22 million less in net administrative burden annually and
businesses spend 290,000 fewer hours yearly dealing with regulatory red
tape. Under the Plan’s Small Business Lens, our Government has also
helped save an estimated $75 million annually in administrative and
compliance costs for over 5,000 small businesses.

Improvements announced today were informed by consultations with
small businesses and would be implemented once the supporting
legislation and regulations are passed.

Quick Facts

  • The Canada Small Business Financing Program helps new businesses
    get started and helps established firms make improvements and expand;
    improves access to loans that would not otherwise be available to small
    businesses; and stimulates economic growth and creates jobs for
    Canadians.
  • Since 2006, the Small Business Financing Program has provided over 50,000 loans to small businesses.
  • While Industry Canada administers the program, private sector
    financial institutions are responsible for all credit decisions and the
    funds loaned are those of the lenders.

Quote

“Our Government is committed to creating jobs and opportunities for
Canadians. Small businesses are the lifeblood of the Canadian economy
and face unique challenges when looking for financing. The changes we
are announcing today to the Canada Small Business Financing Program will
help more small businesses across the country secure the loans they
need to prosper, grow and create jobs.” – Prime Minister Stephen Harper

– See more at:
http://pm.gc.ca/eng/news/2015/01/22/pm-announces-improved-access-financing-canadian-small-businesses#sthash.mdhlb9c3.dpuf