Small Business Minister talks shop with local entrepreneurs

Sault entrepreneurs gathered at Quattro Hotel & Conference Centre Wednesday for a Sault Ste. Marie Chamber of Commerce Fireside Chat with federal Minister of Small Business Rechie Valdez and Sault MP Terry Sheehan.

Both leaders spoke of the value of small businesses, taking questions and listening to comments and concerns from audience members.

One question involved whether the federal government has a message or path to follow for small businesses in the downtown core facing not only the challenges of doing everyday business but also being at the front and centre of social issues — such as drug use, homelessness and sometimes vandalism and theft — near business owners’ storefronts.

Sheehan replied that a safer, healthier downtown involves more people living downtown.

“When we have people living downtown, they spend money downtown. It’s really, really important that people stay downtown and be downtown for vibrancy and we’ll continue to work on that,” Sheehan said, referring to the new 107-unit apartment building currently under construction on Pim Street.

“It’s also about making sure there’s wrap-around supports. We just need to continue to work on supporting the people that need help,” Sheehan said.

The question came as SooToday's Kenneth Armstrong reported Wednesday that Sault Ste. Marie went to the top of Ontario's list for the rate of opioid-related deaths reported in the first three months of 2024, according to new data released by the Office of the Chief Coroner (OCC).

“With regards to the drug crisis, my heart goes out to all the families who are certainly affected here in the Sault,” Valdez told SooToday after Wednesday’s event.

“There is the need for housing and developing housing much quicker and faster,” Valdez agreed, regarding ways to address social ills.

“Our government has put forward already a billion dollars to help solve, or help work with, local, provincial and territorial governments, even city governments, and Ontario brought up what they’re doing to take action on this, but we are seized with this, we are going to continue to work with our provincial and territorial counterparts (in addressing social issues).”

Both Sheehan and Valdez said that Minister of Mental Health and Addictions Ya'ara Saks will soon be visiting the Sault.

“I encourage all businesses to share their feedback with her,” Valdez said.

“All levels have to address this,” Sheehan added.

“I’m a supporter of the mayor’s plan to have a police station downtown. What we did on a federal level was reverse the cuts to the RCMP and the Canada Border Services Agency. The previous government took almost a billion dollars from those agencies. We’ve reinvested in them. They laid off a bunch of people at our border so the border where some of the drugs and guns are coming in, we’ve reinvested in that.”

That’s on the law and order side but Sheehan reiterated the importance of treatment for those suffering from addictions.

“We’re working with Algoma University on the new mental health and addictions area. We’ve invested millions of dollars into the Bear Den (formally known as Makwa Waakaa’igan, a future centre of cultural excellence, Truth and Reconciliation, learning and healing at the university's Sault Ste. Marie campus) on the treatment side.”

“We need a multi-pronged approach to this. It’s not just a problem in Sault Ste. Marie, it’s a problem across Canada and the world. I have a lot of American friends that are saying the same thing. I know a man in the information technology business who moved from inside an American city just because he couldn’t live in the downtown any more, so what we need to do here is work with the province, the city and the downtown communities. We support businesses through the Community Development Corporation that is located downtown so people can go in there and get assistance, funding and mechanisms for small business,” Sheehan said.

Valdez was asked by SooToday about an unpopular increase to the capital gains inclusion rate that has upset many, including small business owners, farmers and medical professionals who will pay a larger taxable portion of gain made from selling properties, stocks or bonds and family cottages.

Valdez, however, said the federal government has eased that burden on individuals such as small business owners.

“What we did do when we implemented the changes on capital gains was ensuring that for small businesses we increased the lifetime capital gains exemption from $1 million to $1.25 million. That will allow more small businesses to have more of a tax relief.”

“There’s also the Canadian Entrepreneurs’ Incentive. This is reducing the capital gains tax for small businesses and then combined with the lifetime capital gains exemption it’s putting businesses better off if they’re selling their business, so we created ways for small businesses and entrepreneurs to be able to get that relief,” Valdez said.

“Newcomers have really stepped up and are finding ways to fill the gap by opening up small businesses,” Valdez told reporters regarding the need for entrepreneurs.

“Our government is there to help you whether you’re a brand new business, a newcomer to Canada, to help you start and grow your business by the various supports.”

Valdez said one such support is the Canada Small Business Financing Program.

“Our government backs the risk to help enable more small business entrepreneurs to qualify for the capital that they need. There are many different supports to help level the playing field whether you're a woman, Black or an Indigenous entrepreneur. There are many various supports to help enable and be there for small businesses when they need support.”

Sheehan noted the need for newcomers such as international students to address the labour shortage but stated that the federal government’s current international student cap is only a temporary measure.