Small Businesses to Ottawa: Your Support Programs Are Missing the Mark

OTTAWA, ON – January 19, 2026 – As Members of Parliament prepare to return to Ottawa, a leading voice for Canadian small business has issued a stark warning: federal support is failing to reach the entrepreneurs it's designed to help, leaving them to navigate a treacherous economic landscape alone.

The Canadian Federation of Independent Business (CFIB), which represents 100,000 small and medium-sized enterprises (SMEs), is calling on the federal government to make 2026 the “year of the entrepreneur.” The call comes after what the organization describes as a punishing year for its members.

"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."

A Billion-Dollar Disconnect

At the heart of the CFIB's criticism is a perceived disconnect between massive government spending programs and the on-the-ground reality for business owners. Two major initiatives, the $1-billion Regional Tariff Response Initiative (RTRI) and a multi-billion-dollar infrastructure fund, are being singled out as ineffective.

According to a December 2025 survey of its members, the CFIB found that awareness and uptake of the RTRI are alarmingly low. The program, launched in March 2025 to help manufacturing SMEs impacted by trade disruptions, is a virtual unknown to nearly four in five business owners. The data shows that less than 1% have applied for the funding, while a third have no plans to apply and another 27% say it isn't applicable to their business.

The RTRI, delivered through Canada's regional development agencies, was designed to offer contributions of up to $1 million to help firms boost productivity and diversify markets. However, with eligibility criteria often focused on specific sectors like steel and auto manufacturing, the CFIB argues it excludes a vast portion of the small business community from the outset.

Further criticism was leveled at what the CFIB termed the "$51-billion Building Communities Fund." Research suggests this may refer to the Canada Community-Building Fund (CCBF), a long-standing federal program that provides over $2.5 billion annually to municipalities for infrastructure projects like roads and public transit. While beneficial for communities, the fund does not provide direct financial support to individual businesses. The CFIB's core complaint is that by allegedly prioritizing unionized businesses for such projects, the government is effectively sidelining the estimated 90% of small construction firms that are non-unionized, creating what they call an "unjust and discriminatory" competitive landscape.

"Unsurprisingly, most SMEs feel excluded from the very government programs they were told were meant to help them," said Jasmin Guénette, CFIB's vice-president of national affairs. "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."

A Blueprint for Recovery

In response to these perceived failings, the CFIB has laid out a detailed eight-point plan, urging the government to adopt concrete measures that would provide immediate and broad-based relief.

Topping the list is a call for significant tax reform. The federation is pushing for the federal small business tax rate to be lowered from 9% to 6% and for the income threshold for that rate—the small business deduction—to be increased from $500,000 to $700,000 and subsequently indexed to inflation. This, they argue, would free up critical capital for businesses to reinvest in hiring, technology, and growth.

Payroll taxes are another major target. The CFIB proposes either introducing a lower Employment Insurance (EI) premium rate for smaller employers or shifting the employer-employee contribution split from the current 60/40 to an even 50/50, which would ease the direct cost of maintaining and hiring staff.

To combat regulatory burden, the organization is advocating for a “two-for-one” rule, requiring the government to eliminate two existing regulations for every new one introduced. They also want a clear public measure of the total number of federal rules in place.

Other key recommendations include:
* Supply Chain Stability: Taking measures to prevent work stoppages in federally regulated sectors like transportation and at Canada Post.
* Immigration: Better aligning immigration programs with the specific labour needs of local small businesses.
* Fiscal Discipline: Implementing a clear path to a balanced federal budget with legislated spending limits.

Navigating Trade and Internal Hurdles

The persistent uncertainty in Canada-U.S. trade relations remains a major source of anxiety for entrepreneurs. With trade talks currently suspended, the CFIB survey found that 60% of SMEs want the federal government to prioritize working with the U.S. to create a more predictable environment. The federation is also demanding that money collected from Canadian counter-tariffs be returned directly to all affected small businesses, rather than being funneled into narrow programs like the RTRI.

Beyond international borders, businesses are also looking for relief at home. An almost equal number of entrepreneurs (59%) believe that reducing internal trade barriers between provinces would be a significant help in managing costs and expanding their markets. The CFIB specifically points to including food in Canada’s mutual recognition framework as a tangible step forward.

As MPs take their seats in the House of Commons, they face a small business community that feels unheard and unsupported. After a year of navigating rising costs, labour shortages, and economic uncertainty, entrepreneurs are looking for more than just reassuring words. With a comprehensive list of demands on the table, the pressure is on for Parliament to prove that 2026 can indeed become the 'year of the entrepreneur'.