Canada outlines small business support during Small Business Week

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Canada small business support

Highlights

Ottawa is injecting $1.5 billion into the Regional Tariff Response Initiative and adding $500 million in liquidity via BDC’s Pivot to Grow Program with expanded eligibility.
The new Productivity Mega Deduction aims to lower investment costs for equipment and assets, alongside measures to cut red tape and facilitate export diversification.
Renewed government funding supports the Women Entrepreneurship Strategy, Black Entrepreneurship Program, and 2SLGBTQI+ Entrepreneurship Program to encourage broader participation in small business.

Government support measures and investment incentives

As reported by the Government of Canada, Minister Rechie Valdez says small businesses remain central to the country’s economic base as policymakers respond to global uncertainty with targeted support measures.

The statement says Ottawa is adding $1.5 billion to the Regional Tariff Response Initiative and providing $500 million in new liquidity support through the Business Development Bank of Canada’s Pivot to Grow Program. Eligibility under the BDC program is also being expanded to reach more businesses managing cash flow pressures, workforce retention and investment needs.

The government also says the new Productivity Mega Deduction is intended to reduce the cost of investing in equipment and other productive assets. Officials frame that measure alongside efforts to reduce internal trade barriers, cut red tape, widen access to procurement and advanced technologies, and diversify export markets.

Broader economic and inclusion goals

Valdez says stronger small business performance is tied to Canada’s longer-term competitiveness and resilience. The statement presents support for business investment and hiring as part of a broader strategy to build what the government describes as the strongest economy in the G7.

The minister also points to renewed backing for the Women Entrepreneurship Strategy, the Black Entrepreneurship Program and the 2SLGBTQI+ Entrepreneurship Program. The government says those initiatives are meant to broaden participation in entrepreneurship while strengthening support for both workers and employers.

In our earlier coverage of Pakistan’s push to expand lending to housing, agriculture and SMEs, we outlined how the government urged banks to increase credit flows and tied stronger priority-sector financing to access to incentives. The report detailed targets for raising farm and SME lending by 2027, alongside steps to speed up housing-loan processing and reduce paperwork. It also highlighted planned regulatory tweaks and risk-sharing measures aimed at easing structural barriers that limit broader access to formal credit.

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