There are grants and loans for 160,000 business owners.
Trudeau said the government is allocating $4 billion over four years for small and medium businesses.
The photo was taken by REUTERS.
Trudeau announced Thursday that the government is allocating $4 billion over four years for small and medium-sized businesses to accelerate their digital transformation.
The Canadian Digital Adoption Program will provide loans and grants to 160,000 business owners, giving them capital to create an online e-commerce platform or acquire technologies to make operations more efficient.
Trudeau said at the press conference that the announcement was all about empowering small businesses with digital tools so that they can reach their full potential.
Adoption of digital technologies and bolstering online presence is becoming increasingly important in a post-pandemic world where new habits of online shopping and conducting business virtually have become more commonplace. According to Statistics Canada, small and medium-sized businesses are vital to economic prosperity.
The Business Development Bank of Canada (BDC) offers two streams of funding for business owners. Businesses can receive microgrants of $2,400 if they use them to help them implement digital storefronts and e-commerce functions.
90 per cent of the costs for developing a digital adoption plan will be covered by grants. Small and medium-sized businesses can get loans of up to $100,000 from the venture capital bank.
As the Bank of Canada charts a course to temper inflationary growth, increasing a business' online presence can bring in more sales and adopt digital tools can lower operational costs. On March 2, the central bank raised the overnight interest rate to a rate of 0.5 per cent from the emergency low of 0.25 per cent.
Statistics Canada reported in a March 3 survey that close to 20% of small businesses expect sales to decrease over the next six months and that revenues will be lower in 2021.
We are preparing Canada to be the global leader in the economy of the future and we are bolstering our country's long-term growth and competitiveness.
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