QUESTION PERIOD — Innovation, Science and Economic Development
Support for Small Businesses
April 16, 2026
My question is for the Government Representative in the Senate. It is about small businesses once again.
We are doing a study on small businesses at the Standing Senate Committee on Banking, Commerce and the Economy. Small- and medium-sized enterprises play such an important role in the economy as job creators. I like the scorecard you put forward — I have great faith in Canada — but I always say that it is not how well we are doing; it is how well we could be doing.
I have read some of the reports this year that we had this week with the Canadian Federation of Independent Business. We need to inspire confidence in our entrepreneurs and incite our young people to start businesses.
I would like for you to elaborate. Given the critical role that SMEs play in job creation and economic growth, what concrete measures is the government taking? You spoke about reducing red tape, but what about improving access to capital? It is so important to help Canadians successfully start, acquire and grow businesses today.
Let me be clear: The government strongly believes that small businesses are the backbone of the Canadian economy. I can’t be clearer than that.
The direct answer to your question is that, in order to reduce red tape, the government is introducing new regulatory sandboxes and access to capital as well as expanding the Business Development Bank of Canada’s bank loan maximum for small- and medium-sized businesses to $5 million. For starting a successful business, $46.5 million is being provided to the SME Export Readiness Initiative to support entrepreneurs with limited exporting experience with international trade to build, scale and strategize effectively.
We’re behind our entrepreneurs and small businesses, and we are making our Canadian economy grow rapidly.
Thank you for that. I’m confident that we will continue doing that.
For Canadian businesses to prosper and remain in Canadian hands, the government must renew the capital gains tax exemption for employee ownership trusts. It is such an important program.
I know you can’t answer this today, but with the spring economic statement set for April 28, can you confirm that the government is considering standing or making permanent this important tax incentive? I know you can’t answer that, but since you spend 50% of your time with the government, I am certain you agree with —
Thank you, Senator Loffreda.
Thank you for asking a question you know I can’t answer, but thank you for the question.
In Budget 2025, the government confirms that it has considered the tax exemption for sales to employee ownership trusts, and it intends to proceed with it as modified to take into account consultations and deliberations since its release. So, you have a good clue there as to where the government is aiming in the future.
Thank you.
