The federal government announced its 2009 budget yesterday. There were several initiatives announced that will affect small businesses. We’ve compiled the highlights:
$1-billion over five years for a development agency to help people and businesses in Southern Ontario.
$1-billion over two years for a Community Adjustment Fund.
Improved access to capital from $13-billion in additional financing for Canada Mortgage and Housing Corp., Export Development Canada and the Business Development Bank of Canada.
New life insurance debt guarantee facility.
Extend capital cost allowance rate on investments in manufacturing or processing equipment and machinery.
Offer a temporary 100 per cent CCA rate for computers bought after Jan. 27, and before Feb. 1, 2011.
Increase the income eligible for the small business tax rate to $500,000 from $400,000.
Increase maximum loans available under the Canada Small Business Financing Program.
$225-million over three years to extend broadband coverage to unserved communities.
$8.3-billion skills budget over two years, half of which will be used to freeze premiums.
Employment Insurance program enhancements.
Training programs for jobless Canadians.
Extend EI by five weeks to 50 weeks.
Improve work sharing provisions.
New disclosure rules and a minimum grace period on credit cards.
Related budget stories
Ottawa greases credit wheels, The Toronto Star
The federal government is bolstering efforts to keep credit flowing in Canada, including a $50 billion increase in the amount of mortgages it plans to purchase from the banks and other lenders.
Small businesses to get $8,500 tax break, increased access to capital, Ottawa Business Journal
Small businesses will save roughly $8,500 in federal taxes in a budget also containing measures to increase access to capital, but lacking new general corporate tax relief and enhanced R&D incentives.