2 federal ministers meet with Invest Ottawa to discuss Budget 2024, small businesses

Constitution Square in downtown Ottawa. (Natalie van Rooy/CTV News Ottawa)

Two federal ministers met with Invest Ottawa in the capital Sunday to highlight the government’s budget for 2024.

In a release on Sunday, the government said the president of the Treasury Board, Anita Anand and Minister of Families, Children and Social Development Jenna Sudds highlighted the key aspects in the latest budget that was announced on April 16 to support small business.

"Small- and medium-sized businesses are the backbone our economy. Since 2015, we have been there to support Canadian business owners while helping more entrepreneurs succeed. Through Budget 2024, we are going even further to invest in Canadian start-ups and be there for small- and medium-sized businesses. We have a plan that will create good jobs, enhance productivity, and encourage game-changing innovation to keep Canada at the economic forefront," said Anand in the release.

Sudds adds that small businesses create jobs and improve the economy as a whole across the country.

“It is essential that these businesses thrive, so they can continue being the bedrock of our communities and our economy,” said Sudds in the release.

Meanwhile, founder and CEO of Immigrant Entrepreneur Canada, Karla Briones, says there are many barriers hindering entrepreneurs in the country, including limited access to capital and resources.

"Revitalizing our downtowns and strengthening our economy starts with supporting small businesses to succeed and thrive. For economic growth to reach the pace that is needed, existing businesses need support to stay competitive and scale-up. This Budget invests to make it easier for new businesses, including young entrepreneurs, to launch —and for existing businesses to grow by providing the tools businesses need to scale-up," said Yasir Naqvi, member of Parliament for Ottawa Centre.

The meeting highlighted the government’s investments in the following:

• The New Canada Carbon Rebate for Small Businesses to urgently return proceeds from the price on pollution from 2019-20 through 2023-24 to an estimated 600,000 businesses in provinces where the federal backstop applies, with 499 or fewer employees through a new refundable tax credit. This would deliver over $2.5 billion directly to these small- and medium-sized businesses.

• Empowering Young Entrepreneurs with an investment of $60 million over five years for Futurpreneur Canada, a national not-for-profit organization that provides young entrepreneurs with access to financing, mentorship, and other business supports to help them launch and grow their business. By 2029, Futurpreneur Canada estimates this investment will enable an estimated 6,250 additional businesses owned by young Canadians to launch and scale-up their businesses.

• Investing in Canadian Start-ups with $200 million over two years, starting in 2026-27, on a cash basis, to increase access to venture capital for equity-deserving entrepreneurs, and to invest in underserved communities and outside key metropolitan hubs.

• Boosting Government Procurement for Small- and Medium-Sized Businesses by announcing the government's intention to propose legislated procurement targets for small- and medium-sized businesses and innovative firms.

• Lifetime Capital Gains Exemption Increase from the current amount of $1,016,836 in capital gains tax-free on the sale of small business shares and farming and fishing property to $1.25 million, effective June 25, 2024. The Lifetime Capital Gains Exemption will continue to be indexed to inflation thereafter. In 2025, Canadians with eligible capital gains of below $2.25 million will be better off under these changes.

Though some economists think otherwise, the government says its budget 2024 “is a plan to deliver fairness for every generation” through building more homes, making life more affordable, growing the economy and making Canada's tax system more fair by asking the wealthiest to pay a bit more, reads the release.

"Our government first came to office with a vow to strengthen and expand the middle class. We delivered on that pledge by reducing poverty, especially for children and seniors, and creating millions of good jobs for Canadians. Our work isn't done,” said Deputy Prime Minister and Minister of Finance, Chrystia Freeland, in the release.

“Budget 2024 renews our focus on unlocking the door to the middle class for millions of younger Canadians. We'll build more housing and help make life cost less. We will drive our economy toward growth that lifts everyone up. That is fairness for every generation.”