With a week to go before Parliament resumes, the Canadian Federation of Independent Business (CFIB) is calling on the federal government to make 2026 a year of the entrepreneur and implement policies that will support the growth and success of small businesses.
“2025 was a rollercoaster for small businesses. They had to navigate unpredictable tariffs, continued labour disputes and disruptions, and weak consumer demand, all while the cost of doing business continued to rise,” said Corinne Pohlmann, CFIB’s executive vice-president of advocacy.
“The November federal budget did not provide meaningful support to small businesses. We urge Parliament to make small business priorities their priorities this winter and to strengthen Canada’s entrepreneurial landscape.”
The CFIB is Canada’s largest association of small and medium-sized businesses with 100,000 members across every industry and region.
Small business owners report that federal budget programs such as the $51-billion Building Communities Fund and the $1-billion Regional Tariff Response Initiative (RTRI) are missing the mark, said the national organization.
Nearly four in five business owners weren’t even aware of the federal RTRI program, aimed at businesses affected by trade disruptions and tariffs. CFIB data shows that less than 1% have applied so far, a third (31%) don’t plan to apply, and 27% say the program isn’t applicable to them. As for the Building Communities Fund, it could exclude the vast majority of small businesses by providing a competitive advantage to unionized businesses. This approach would be unjust and discriminatory, it said.
“Unsurprisingly, most SMEs feel excluded from the very government programs they were told were meant to help them. Words have no meanings if they are not translated into actions. It’s time for government to deliver policies and conditions where small businesses can grow and thrive,” said Jasmin Guénette, CFIB’s vice-president of national affairs.
With Canada-U.S. trade talks currently suspended, 60% of SMEs say the federal government should actively work with the U.S. to reduce trade uncertainty. Other ways to help small firms manage the impact of tariffs include reducing internal trade barriers (59%) and providing broad-based tax relief (56%), finds CFIB data.
CFIB said it is calling on the federal government to:
• Small business tax rate: Lower the small business tax rate from 9% to 6%, increase the small business deduction threshold from $500,000 to $700,000 and index it to inflation.
• Trade with the U.S.: Ensure that the money collected through Canadian counter tariffs is returned to all affected Canadian small businesses.
• Payroll taxes: Introduce a lower EI premium rate for smaller employers or move the employer/employee split from 60/40 to 50/50.
• Internal trade: Include food in Canada’s mutual recognition framework.
• Red tape: Measure and report on the total number of rules in place and introduce a “two-for-one” rule that applies to all regulations, legislation, and policies.
• Supply chain: Ensure that there are no work stoppages or disruptions in the federally regulated transportation sector and at Canada Post.
• Immigration: Ensure that immigration programs align with local small business labour needs.
• Balanced budget: Implement a clear path to balancing the overall government budget with legislated spending limits outside of a global crisis.
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