Economic Action Plan: Does it work?

The federal government is allocating the following funds to support the small business community. Will the plan help your business? Many feel that its fundamental flaw is deployment of resources. How do small businesses actually access the funds?

• A two year 100-per-cent capital cost allowance (CCA) rate for investments in computers is helping businesses adopt newer technology at a faster pace.
• The extension of the temporary 50-per-cent straight-line accelerated CCA rate to manufacturing or processing machinery and equipment acquired in 2010 and 2011 is helping businesses in the manufacturing and processing industries make necessary equipment purchases and position themselves for long-term success.
  
• The one-year extension of the temporary 15-per-cent Mineral Exploration Tax Credit supports mineral exploration activity across Canada, helping to keep our mining industry growing.
  
• Increasing the amount of small business income eligible for the reduced federal tax rate of 11 per cent to $500,000 from the current limit of $400,000 as of January 1, 2009.
  
• Increasing access to credit for small businesses through proposed amendments to the Canada Small Business Financing Program and the Business Development Bank of Canada. (www.bdc.ca)
  
• Providing $30 million over two years for the Canada Business Network (www.canadabusiness.ca) and $10 million to the Canadian Youth Business Foundation. (www.cybf.org)
  
• Allocating $200 million over two years to the National Research Council's Industrial Research (www.nrc-cnrc.gc.ca) Assistance Program to enable it to temporarily expand its initiatives for small and medium-sized businesses.