Bank of Canada rate increase will hurt small biz: Study
Article content material
A brand new Canadian Federation of Unbiased Enterprise research reveals seven in 10 small companies really feel the Financial institution of Canada newest price improve — the fifth this yr — will harm their backside line.
Commercial 2
Article content material
The research additionally says 81% of small companies imagine the feds don’t perceive the pressures of prices that they face.
Article content material
“This could sound the alarm for governments to take swift motion and supply extra price aid,” mentioned CFIB president Dan Kelly in a press release.
“Placing upcoming tax hikes on maintain and fast-tracking promised reductions in bank card processing charges can be two early methods the federal authorities can assist.”
The CFIB’s August Enterprise Barometer information additionally reveals nearly one-third of companies (32%) plan to lift their costs by 6% or extra within the subsequent yr though it was as excessive as 39% again in June.
-
Small enterprise hopes for ‘do-no-harm’ price range: CFIB
-
Uptick in enterprise bankruptcies simply the tip of the iceberg: CFIB
-
Labour shortages, gasoline prices trigger small enterprise confidence to fall, CFIB says
Commercial 3
Article content material
The research additionally reveals 79% of small companies raised their costs greater than standard prior to now yr to compensate for rising prices.
The CFIB desires the federal government to freeze deliberate federal tax hikes, together with the 2022 improve in CPP, EI, carbon and liquor taxation, and cut back the provincial payroll tax burden.
The group additionally desires Ottawa to extend the forgivable portion of the Canada Emergency Enterprise Account (CEBA) mortgage to a minimum of 50% and prolong the compensation deadline for CEBA loans to qualify for partial mortgage forgiveness to December 2024.
RECOMMENDED VIDEO
Additionally they need the small enterprise deduction elevated to $600,000 from its present $500,000 and Ottawa to instantly inexperienced mild the promised discount in bank card charges for small retailers
Commercial 4
Article content material
“As small corporations are struggling to maintain up with staggering will increase on nearly each line of their price range, governments should keep away from imposing further prices that may put the livelihood of small companies in danger,” mentioned Kelly in a press release.
The financial institution raised its benchmark rate of interest by 75 foundation factors on Wednesday bringing the coverage price to three.25%.
“Whereas conserving inflation at cheap ranges is certainly an vital coverage purpose, the speed improve comes at a time when 62% of small companies are nonetheless saddled with pandemic debt, for a mean of $158,000,” mentioned Simon Gaudreault, the CFIB’s Chief Economist and Vice-President of Analysis, in a press release.
