By Trish Sawhney
The newly announced Federal Budget 2021 proposes a variety of amendments to ensure Canadian innovators, start-ups, and technology-intensive businesses can access proper capital to protect innovations and succeed in the long term. While further details have yet to be released, we have provided a snapshot of some of the proposed investments below:
To begin, Budget 2021 introduces a new measure, which will allow Canadian-controlled private corporations to immediately expense up to $1.5 million in eligible investments, including intellectual property.
Secondly, Budget 2021 proposes a variety of amendments to the Canada Small Business Financing Program (“CSBFP”). These changes are expected to increase annual financing by $560 million, resulting in support for nearly 3000 more small businesses.
For example, as it currently stands, the CSBFP does not provide financing to help small businesses protect intellectual property. However, Budget 2021 intends to expand the CSBFP’s loan class eligibility to include lending against intellectual property and start-up assets and expenses. Budget 2021 also plans to expand borrower eligibility to include non-profit and charitable social enterprises.
Lastly, Budget 2021 proposes to support Canadian businesses through the following investments:
These welcomed changes are intended to further incentivize businesses to invest in assets like intellectual property, ultimately acting as a driver for innovation and growth throughout Canada.
If you would like to learn about other financing options that are currently available for Canadian businesses, please check out this resource from the Canadian Intellectual Property Office.
Interested in discussing strategies for protecting your intellectual property? Contact us today!