Small businesses ask for cost-pressure relief from upcoming Fall Economic Statement

TORONTO — The CFIB says that the federal government should not make things worse in its 2023 Fall Economic Statement and should implement policies that would help struggling small businesses, says the Canadian Federation of Independent Business (CFIB).

“The future is not looking bright for many small businesses who are getting squeezed by rising costs on all fronts. Between high interest rates, pandemic debt loads, weak domestic demand and labour shortages, business owners haven’t had a normal month of sales in over three years,” said CFIB’s president Dan Kelly. “We’re urging the government to do more to help small business owners and not put the future of viable businesses at risk.”

CFIB continues to urge the government to extend the CEBA forgivable deadline further to December 31, 2024.

“The federal government’s recent announcement of an 18-day extension to the forgivable deadline is not what small businesses were looking for. It didn’t address the most critical and pressing deadline small businesses are worried about. They will lose the $20,000 forgivable portion of the CEBA loan unless they have the money to repay by January 18, 2024,” Kelly said. “Too many small businesses are just not back to normal given the current economic conditions. The time to act is now.”

The CFIB is also asking for:

• The cancellation of the 2024 Employment Insurance (EI) increase and work to reduce EI premium rates for smaller businesses.
• Delay the phase-out of the Accelerated Capital Cost Allowances measures and make immediate expensing permanent to encourage businesses to invest in automation to help address labour shortages.
• Increase the small business deduction threshold to $700,000, the lifetime capital gains exemption to $1.2 million and index both to inflation.

“The surprise EI rate increase for 2024 will cost businesses and employees $1.4 billion in 2024. This rate hike is another hit to small businesses and is coming at the worst time,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB.