As businesses in B.C. grapple with the latest wave of tariffs and counter-tariffs resulting from the U.S.’s trade war on Canada, the federal government is stepping in.
More than $10 million in investments for Lower Mainland companies were announced Friday, aimed at giving local companies a fighting chance to survive.
But business advocates say the money may not make it into the hands of those who need it.
The money is coming in the form of loans to some companies and grants to others, with the goal of allowing them to modernize and expand their operations, despite the economic onslaught from the United States.
“We are here to invest in ourselves and give ourselves more than anyone else can take away,” said Minister of Housing and Infrastructure Gregor Robertson, who is responsible for Pacific Economic Development Canada (PacifiCan) — the federal economic development agency that distributes tariff relief.
“These investments will help businesses to pivot to new pathways to growth, to figure out how to get through the uncertainty and challenges, to improve productivity, expand into new markets, and build more resilient supply chains.”
Twelve businesses — including Nickels Cabinets, the Richmond company that hosted the announcement — are benefitting from the investment, which represents a small chunk of the $3.5 billion allocated to the Regional Tariff Response Initiative.
But business advocates say the money isn’t necessarily making it into the accounts of the companies that need it most.
The Canadian Federation of Independent Business (CFIB) says criteria such as a minimum annual revenue of $1 million and a minimum employee count disqualify many small businesses from getting the help they desperately need — an issue compounded by the challenges of jumping through the various hoops to apply.
“We’ve been sending a clear message to the federal government that relief has to encompass small businesses of all sizes; they all play a critical role in the supply chain,” said Kalith Nanayakkara, CFIB senior policy analyst for B.C.
“Entrepreneurs are busy. They don’t have a lot of time because they’re already navigating a very difficult and complicated regulatory environment.”
Darcy Lane’s Vancouver Island business met the revenue threshold, but not the employee count to get help from PacifiCan. It has been able to get some funding through the Business Development Bank of Canada, but with millions of dollars in projects in the U.S. in his pipeline, Lane says they need all the help they can get.
“If these negotiations don’t happen and the tariffs stay on, inevitably we will lose out on that work,” Lane said.
“When you’re talking those kinds of funds, people don’t have 50 per cent of that budgeted away just to pay a tariff.”
Robertson said PacifiCan is currently looking at ways it can streamline its processes, but adds there is a certain level of vetting that is required to make sure the money is shared responsibly.
