The federal government’s reveal of the 2026 Budget has garnered mixed reactions from the Canadian Federation of Independent Business, the Ontario Chamber of Commerce, and the Canadian Chamber of Commerce.
CFIB’s reaction
In its statement, the CFIB criticized the budget as “a big let down” for small business owners.
“Small business owners are looking for tax reductions and tariff relief, and the budget provides neither. I find it appalling that, a year and a half into the trade war, the government hasn’t even bothered to fix the failing tariff relief measures,” said CFIB president Dan Kelly.
He noted that small organizations with less than a million in sales revenue are ineligible for current tariff relief support programs “despite Canada having collected more than $14 billion in counter-tariff revenue.”
“While there is a reannounced Mega Deduction and a focus on mega projects, small business owners will find the 2026 budget mega disappointing. If you are a small business owner struggling to keep your business going in the face of rapidly rising costs and a trade war, the budget will provide you with no help whatsoever,” Kelly said in the statement.
Nonetheless, the CFIB acknowledged the Mega Deduction expansion and the enhanced small business rollovers, which it said would aid with small business investments. It also highlighted tax simplification measures that would cut down the red tape burden by $2 for every $1 of new regulatory costs.
It noted that the Canadian Growth Incentive includes a $15 million capital gains exemption that could help small business investment if designed properly. Kelly said the incentive “has a lot of potential to help address the decline in business starts that Canada has been facing in recent years”; however, he slammed the exclusion of certain sectors from the initiative.
“Ottawa has decided to limit the initiative by adding a bunch of complicated rules which result in excluding about half of the businesses that could otherwise use it. It makes absolutely no sense that a family farm, a hotel, restaurant, forestry or fishing business, engineering firm or arts/entertainment business would be excluded,” Kelly said. “CFIB strongly supports the spirit of this proposal, but will immediately lobby to simplify it by including all sectors covered by the Lifetime Capital Gains Exemption.”
OCC’s reaction
By contrast, the OCC praised a number of measures introduced in the federal budget, which it said reflected the progression of priorities listed in the chamber’s federal budget submission. These measures include the streamlining of approvals for major projects and energy infrastructure and the National Electricity Strategy and Nuclear Energy Strategy, new housing investments, and investments in energy-saving technology adoption at industrial and manufacturing facilities.
“Today’s federal budget recognizes that mobilizing business investment will both grow our economy and safeguard our sovereignty. The Ontario Chamber welcomes measures that cut costs, incentivize innovation, help businesses scale, and strengthen Canada’s competitiveness and its communities,” said Daniel Tisch, the OCC’s president and CEO, in a statement.
Nonetheless, the OCC flagged the need for clear timelines, service standards, and public reporting for major projects, infrastructure investments, and internal trade reforms. It indicated that more work needed to be done to facilitate small business growth through sustained tax and regulatory changes developed in collaboration with provinces and territories.
Moreover, immigration, skills training, and work-integrated learning must be aligned with employer and regional labour-market needs. Access to export financing, international buyers and new supply-chain opportunities must be simplified to help businesses enter new markets and minimize the influence of trade disruption.
Canadian Chamber of Commerce’s reaction
The Canadian Chamber of Commerce’s public policy chief Matthew Holmes described the budget as “a step change in how the government is incentivizing the kind of business investment and reinvestment Canada needs.”
Holmes expressed concern with public debt charges being “the fastest growing component of federal spending,” noting that it would significantly restrict the government’s capacity for services and new initiatives down the line.
“With a projected $62.3 billion deficit and increasing borrowing costs, Ottawa must remain committed to its economic growth strategy as a way to mitigate this risk. If we can’t, this will become a fiscal shackle,” he cautioned in a statement.
Holmes indicated that boardrooms, factory floors, and small businesses’ decisions on whether Canada is worth an investment would be the budget’s “real report card.”
“Based on what we’ve seen, this budget sets the stage for entrepreneurs and business owners to consider starting or growing their business here at home,” he said.