As a result of the Federal election, we are now in a minority government situation. Here are some consequences of this fact for Federal government funding for businesses.
1.¬ Continuity. Even though it is a minority government, it will still be the Liberal government, and we expect that all government funding programs maintained or launched in the past four years will be in place. Such programs include but are not limited to¬ SR&ED,¬ IRAP,¬ CanExport,¬ Business Scale-Up & Productivity¬†and¬ Yves Landry Foundation’s (AIME Initiative).
2.¬ Focus on Greenhouse Gas Emission Reduction. The Carbon Tax is here to stay, which means that a portion of its revenue will be invested in¬ Climate Action Incentive Fund¬†and R&D funding programs for the clean technology sector.
3.¬ Industry Focus. Other than the cleantech, the automotive, agriculture, food and beverage industries were listed as priority ones during the election campaign. Given the Liberal party’s defeat in some Western Canada, the funding for the natural resources sector¬†may be released.
4.¬ Geographic Focus. The ruling party got a significant hit in Alberta, Saskatchewan, Quebec, and Rural Southern Ontario, which means there may be new funding programs for those regions.
5.¬ Next Budget Will Be a Tough Sell. The Liberals won’t be able to approve the next budget in the Parliament alone without the support of the other parties. Expect delays in the Federal budget process. We expect that the new Federal government funding programs (e.g. a replacement of Canada-Ontario Job Grant) will be announced in the next budget. The next government fiscal year starts on April 1st, 2020.
What Do You Think?
Let me know what you think about the future of Federal government funding by replying to this email.¬†And remember, the government funding programs come and go. The only way for you to stay up-to-date is to¬ check your eligibility¬†regularly.