Canadian small business owners get a boost from the government
The small business sector of Canada is steadily growing in economic hard times, and economists think this will improve the country's overall finances. Now, Canada's Economic Action Plan and finance programs could indicate that the government also views small business as critical to recovery.
According to a report from ThisWeek, Canada's Economic Action Plan could enable small business owners to retain more of their earnings with an increased amount of SME income eligible for a reduced federal income tax rate.
Effective January 1, 2010, up to $500,000 of small business earnings will be taxed at the reduced rate of 11 percent, saving business owners up to $8,000 on their 2009 tax returns.
Additionally, the Canada Small Business Financing Program increases the maximum loan amount available to entrepreneurs. The revised CSBFP allows entrepreneurs to receive up to $350,000 in general loans, and up to $500,000 for loans made to acquire property.
In addition to these tax reforms, the Vancouver Sun reports that that the federal government is working with the Canadian Federation of Independent Business to try to reduce the paperwork needed to start a small business and on initiatives that will allow multi-employer pension plans for startups.
