Posthaste: Businesses warn government supports amid tariff uncertainty 'miss the mark'
After a year of uncertainty for small businesses, many worry the government measures meant to support them either haven’t been communicated properly or miss the mark entirely.
More than 80 per cent of small businesses aren’t aware of the Regional Tariff Response Initiative (RTRI), a $1-billion program to help companies through challenges related to Canada’s trade war with the United States, according to a recent survey from the Canadian Federation of Independent Business (CFIB) .
Announced in September, the RTRI allocated $1 billion over three years to tariff-affected small and medium-sized enterprises (SMEs) to help boost productivity, cut costs, improve supply chains and enter into new markets.
Still, there is plenty of money left in the coffers. The CFIB reports that less than one per cent of eligible businesses have applied for the program, while 31 per cent don’t plan to and 27 per cent said the program does not apply to them.
Meanwhile, the CFIB argues another program meant to support small businesses — the Build Communities Strong Fund (BCSF) — gives an unfair advantage to unionized companies.
The $51-billion fund, announced in the November federal budget, is meant to revitalize Canada’s aging infrastructure by providing funding to renovate schools, hospitals and roadways, among others.
The CFIB argues the fund prioritizes unionized labour , thus leaving the other 90 per cent of small businesses out in the cold.
“Unsurprisingly, most SMEs feel excluded from the very government programs they were told were meant to help them,” Jasmin Guénette, CFIB’s vice-president of national affairs, said in the news release. “Words have no meanings if they are not translated into actions. It’s time for government to deliver policies and conditions where small businesses can grow and thrive.”
In a statement, a spokesperson for Housing, Infrastructure and Communities Canada (HICC) said the BCSF is “ensuring that federal funding goes towards proponents who are best placed to understand and address their local needs and priorities as they build connected, liveable communities.”
The spokesperson also called the BCSF “a key piece of the Government’s commitment to build strong communities that work for all Canadians.”
Instead of adding programs, 60 per cent of SMEs would rather the Canadian government focus its efforts on negotiating with the U.S. to reduce the trade uncertainty, the report said. They would also like to see reduced internal trade barriers and tax relief.
The CFIB is recommending the federal government lower the small business tax rate to six per cent, refund counter-tariff income to small businesses, prevent public sector work stoppages and balance the federal budget.
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Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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