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Canadian Budget 2010: What Small Businesses Can Expect

By CO Staff @canadaone |

The Harper government delivered its budget today and the bottom line is that the government will not raise taxes or cut major transfers to persons and other levels of government.

While the much of the emphasis of the 2010 budget is on controlling the debt, there are some new funds available including a new $40 million innovation commercialization program for small and medium-sized businesses.

In total, the government has committed $19 billion toward new stimulus measures in 2010 and 2011.

There were a number of items in the budget that will affect small businesses. Here is a quick look at what small businesses can expect from the Canadian 2010 federal budget.


  • Employment insurance premiums have been frozen until the end of 2010. The initial reaction from the Canadian Restaurant and Foodservices Association is that this budget contains a hidden tax increase to EI premiums that will be seen in 2011. The Canadian Federation of Independent Business (CFIB) is equally concerned. "Suggesting that there will be no tax increases is nonsense as EI premium increases will make it more expensive for small businesses to hire and it will cut into the take-home pay of every working Canadian," said Swift.
  • Red tape will be reduced and the compliance process associated with the taxation of cross-border activity will be streamlined through improvements to Canada's system of international taxation.
  • Canada will become a tariff-free zone for industrial manufacturers as all remaining tariffs on machinery and equipment and goods imported for further manufacturing are eliminated. When fully implemented, this will provide $300 million in annual duty savings for Canadian businesses.


  • A new Small and Medium-sized Enterprise Innovation Commercialization Program will receive $40 million over two years.
  • The National Research Council Canada's regional innovation clusters program will recieve $135 million over two years
  • Canadian cattle processing plants can tap into a program that will deliver $75 million over three years to help them improve operations and make their operations competitive.

Export Development

  • Canadian fish and seafood industry will receive $7.2 million over two years to improve their access to the international marketplace.

Grants & Loans

  • The government will continue to fund the Business Credit Availability Program (BCAP) and will create the Vehicle and Equipment Financing Partnership under BCAP.

Regional & Sector-Specific Stimulus

  • The government announced $2.2 billion "... to support adjustment and secure job opportunities in regions, communities and industries that have been most affected by the economic downturn."
  • The Canadian Youth Business Foundation will see $10 million in new funding

Green energy investments

  • Green energy will get a boost with expanded eligibility for accelerated capital cost allowance when investing in clean energy generation assets.

For more highlights of today's budget, go to to

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