Sask. NDP bets big on small businesses with loan program

The Saskatchewan NDP say they’re going all in on small businesses if they win the provincial election.

On Monday, NDP Leader Carla Beck and jobs and economy critic Aleana Young announced the party’s new plan to support local businesses.

If elected, the NDP would introduce a start-up loan program that would give new entrepreneurs access to up to $40,000 to start and build their business.

Entrepreneurs who are looking to start a new business and have at least 10 staff members would be eligible for the loans and would be able to use the money on purchasing or improving land or buildings, purchasing or improving new or used equipment, and purchasing new or existing leasehold improvements — such as renovations to a leased property by a tenant. The money can also be used on intangible assets and for working capital costs.

The loan would be repayable within five years, with the interest rate set at the government’s cost of capital plus 1per cent, and standard underwriting guidelines will be employed for loan approvals. Also, depending on the applicant’s repayment record, 25 per cent of the loan may be forgiven.

Young said that the current government is failing small businesses.

“Scott Moe is the only premier in Canada to have shrunk the economy before, during, and after the pandemic. He has the second worst job record in the country, and it’s no wonder that small business confidence is at an all-time low,” she said.

Saskatchewan NDP said in a news release that Moe has the worst economic record compared to every Saskatchewan Premier before him, as he’s seen three years of economic decline.

“Rather than lowering costs for small business owners, Scott Moe is set to double the small business tax next year. Carla Beck has committed to freezing taxes across the board, keeping costs low for Saskatchewan residents, and reversing Moe’s plan to double costs for small business owners,” the release said.

Read more

In response to the NDP’s proposed start-up loan program, the Saskatchewan Party, in a statement, said the NDP are making too many promises.

“The election campaign has not even started yet, and the NDP has already racked up more than $3 billion in campaign promises with no plan of how to pay for it. That means the NDP will have to raise taxes, increase the deficit, and cancel important projects like new schools and hospitals that are currently underway. It’s reckless and irresponsible. Our government has a record of helping those that need help accessing capital, such as Indigenous governments and Indigenous-owned corporations, through our Saskatchewan Indigenous Investment Finance Corporation, or (SIIFC).”