Tag Archives: SMEs

Private Corporation Tax Proposals Could Make Financing Conditions Worse for Small Business (IIAC Blog)

Private Corporation Tax Proposals Could Make Financing Conditions Worse for Small Business (IIAC Blog)

The June 2018 IIAC Letter from the President focuses on the proposed tax treatment of passive investment income in Canadian-controlled private corporations and the implications for small business financing.

Roughly 50,000 large private corporations are negatively impacted by the proposals, many of them deeply integrated into the small and mid-sized business sector, engaged in debt and equity financing, strategic corporate advisory services, and merchant banking. The government’s proposed measures will discourage them from undertaking these types of activities, constricting the already scarce flow of capital to new and emerging enterprises.

My Letter offers a number … Continue reading

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Facilitating Access to Equity Capital for SMEs (IIAC Blog)

Facilitating Access to Equity Capital for SMEs (IIAC Blog)

In the last three years, the estimated dollar value of financing in public and private markets for listed small businesses has fallen by half, to just over $1 billion a year. Equity financing for private small companies through the venture capital markets has increased steadily in this recent three-year period but is still averaging just over $2 billion a year. The domestic venture capital funds are an important, albeit relatively modest, source of equity capital for small business, reaching overall annual funding of about $1 billion a year, slightly less than U.S. venture capital investments in … Continue reading

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