Impact of the 2012 Canadian Federal Budget on Startups
By Llyod Lobo for Techvibes
The Federal government announced some great news for startups, small businesses and entrepreneurs as a part of their new budget yesterday.
Over the past few months, there had been talks of streamlining the $3.6 billion Scientific Research & Experimental Development (SR&ED) tax credit program to support a more direct funding model from the savings created. Although the changes to the SR&ED program weren’t significant, they were sufficient to create several new opportunities.
Here’s how to the new budget aims to drive innovation and entrepreneurship in Canada:
• Announcement of a Western Innovation Program which will provide financial support to innovative small and medium-sized enterprises in Western Canada
• $400 million for venture capital activities for private sector investments through a structure yet to be determined
• $100 million to the Business Development Bank of Canada to further support venture capital activities
• $110 million per year in additional funding to the NRC-IRAP program which supports research and development projects carried out by small and medium sized businesses
• $205 million to extend the temporary hiring credit for Small Businesses
• $95 million over 3 years, starting in 2013-14, and $40 million per year thereafter for the Canadian Innovation Commercialization Program to connect innovative SMEs to federal departments through procurement
• $50 million over 2 years to the Youth Employment Strategy to assist more young people to get skills and experience
• $14 million over 2 years to double the Industrial Research Development Internship Program delivered through Mitacs
• Announcement of a new Business Immigration Vision to attract innovative entrepreneurs to grow their businesses in Canada
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