B.C. NDP promises interest-free loans and a hiring tax credit for small businesses

The B.C. NDP has unveiled a plan to help small businesses manage the effects of the Canada-U.S. trade war and wildfires. The party, which called a snap election last month, says that if re-elected it would establish a $500-million relief fund. It would provide interest-free loans of up to $1 million for as long as 72 months to help small businesses recover from recent wildfires or what the party calls Donald Trump’s unfair tariffs.

The NDP also promised $6 million a year in enhanced market research grants and one-on-one advice to help businesses buy Canadian and find markets outside the United States for their products. Eby said in a release that small businesses make communities vibrant, sponsor local sports teams and events, and give young people their first jobs. He said business owners face big challenges and tight margins even in the best of times, and that unfair tariffs and recent wildfires have made those pressures worse for many. The party, he said, wants to help businesses through the difficult period and support them over the long term.

The party also promised a youth hiring tax credit. A small business would be eligible for a refundable $5,000 credit if it hires a person aged 18 to 30 and gives them their first full-time job, lasting 12 months.

B.C. businesses have faced rising costs and lower demand amid a series of challenges since 2020, including the COVID-19 pandemic, which shut down parts of the economy and affected consumer spending; high interest rates; a declining housing market; an earlier round of tariffs; the war in the Middle East; and another round of tariffs. A recent Canadian Federation of Independent Business report found that 56 per cent of businesses advise people against starting a business. The CFIB said the biggest hurdles for B.C. businesses are tax and regulatory costs, wages and fuel costs.