New Government Initiatives to Empower SMBs & What They Mean for Your Business

Givens LLP | November 25, 2024

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In a recent press release, the Canadian government announced a suite of new measures designed to bolster support for small and medium-sized businesses (SMBs) across the country. From carbon rebates to reduced transaction fees and a refreshed payment code of conduct, these initiatives aim to alleviate financial strain and foster growth for business owners.

At Givens LLP, we know that navigating these updates can be complex, and we’re here to help your business maximize the benefits of these changes. Below, we break down the main initiatives and highlight the opportunities they bring to small business owners.

Canada Carbon Rebate for Small Businesses

As part of the government’s new support plan, the Canada Carbon Rebate is set to deliver $2.5 billion to nearly 600,000 small businesses. This rebate targets companies particularly impacted by carbon pricing, such as those in energy-intensive sectors.

  • Qualification Details: Eligible businesses can apply, with rebate amounts depending on their size and regional factors.
  • Deadline Extensions: The government has extended certain tax filing deadlines, allowing more time for SMBs to apply and receive the rebate they’re entitled to.

For businesses operating in high fuel-cost provinces, like those in the construction sector, this rebate can help offset energy expenses, providing much-needed financial flexibility.

For more details on the Canada Carbon Rebate, see the full Government of Canada press release.

Lower Credit Card Transaction Fees

Starting October 19, 2024, new agreements with Visa and Mastercard will introduce reduced credit card fees, potentially saving SMBs up to $1 billion over the next five years. This initiative is especially beneficial for businesses where transaction fees make up a considerable portion of operating costs, such as those in retail and e-commerce.

  • How Much You Can Save: By lowering interchange fees, small businesses will see reduced costs with every transaction, leading to significant annual savings.
  • Next Steps for Businesses: Discuss these changes with your payment processor and regularly review statements to ensure these savings are being passed on.

For many small business owners, this reduction could translate into thousands of dollars saved annually, directly supporting profitability and business growth.

Updated Payment Card Code of Conduct

  1. Effective October 30, 2024, a revised Payment Card Code of Conduct brings increased transparency and faster complaint handling for over 1 million businesses across Canada.
    • Benefits of the Update: This code aims to empower businesses by allowing quicker resolution of payment-related issues and more straightforward rights to switch processors if savings aren’t passed on.

    These updates simplify payment processing and give business owners greater control over transaction fees, boosting confidence in digital payment systems and supporting financial sustainability.

    rules to avoid costly mistakes.

Seek professional advice: Corporate tax rules can be complex. If you’re unsure about how to handle shareholder loans or other withdrawals, consult with a professional. As the court pointed out in the recent case, the taxpayer could have avoided his tax troubles had he sought professional assistance in maintaining the company’s records.

Tailored Benefits for E-Commerce/Retail & Construction Sectors

Each of these initiatives offers unique advantages for specific sectors:

  • E-Commerce and Retail: With lowered transaction fees and updated payment code protections, e-commerce and retail businesses will benefit from improved profit margins and smoother payment operations.

Construction Sector: For construction companies, particularly in regions with high fuel costs, the Canada Carbon Rebate offers direct savings, helping offset operational expenses and fostering resilience in a competitive industry.

Your Next Steps

Making sense of these new support measures can be daunting, but you don’t have to navigate them alone. Givens LLP offers comprehensive support to help your business make the most of these opportunities:

  • Eligibility Assessment: We’ll assist you in identifying which rebates and fee reductions apply to your business.
  • Strategic Financial Planning: Our team can guide you in reinvesting these savings into key growth areas, from new equipment to workforce expansion.
  • Long-Term Financial Management: With Givens LLP, you’ll have expert advice to ensure your business remains financially sound, resilient, and ready to grow.

The recent government initiatives for SMBs bring substantial support to Canadian business owners. From carbon rebates to reduced fees, these measures offer financial relief and operational benefits that can have a lasting impact on your business.

Ready to explore how these government measures can fuel your business growth? Contact Givens LLP today to learn how we can help you leverage these new opportunities for success.

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