Impact of the 2012 Canadian Federal Budget on Startups

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

This is an excerpt. Click here to read the full article from Techvibes.