In case you missed it…

CFA Win – Franchise fees now eligible under the Canada Small Business Finance Program!

After several years of advocacy, the CFA has been able to get several changes to the Canada Small Business Finance Program to better help franchisors and franchisees. These changes to the Canada Small Business Financing Regulations came into force on July 4, 2022.

Franchisee fees can now be financed under the CSBFP

Under the changes that came into force the CSBFP will allow intangible assets (franchise fees, incorporation costs, permits and licenses, etc.) and working capital costs can be financed as a term loan.

Previously these were ineligible for financing under the program and had to be paid for out of pocket of through other credit products that were offered by financial institutions.

The changes to the CSBFP give lenders and small businesses additional financing products, new class of loans, increased loan amounts and terms, improved loan conditions and decreased administrative burden.

Implementation

Now that the changes are legally in force, the banks can start to incorporate them into the financing products that they offer. Each bank will implement the changes based on its own internal roll out process that is outside of the control of both the federal government and CFA.

Click here for more information on the changes.

POLICY UPDATES

Ontario Labour Minister interested in ‘annual’ labour law updates

Ontario’s Labour Minister Monte McNaughton is interested in making yearly updates to the province’s labour laws to keep up with how technological changes affect workers. The Progressive Conservative government is also planning to soon share new ways it hopes to improve conditions for employees, McNaughton told QP Briefing this week.

“I think it makes sense on an annual basis to be coming forward with modern labour laws to protect workers to provide more opportunities for them,” he said in an interview on Tuesday.

The COVID-19 pandemic made it clear to McNaughton that past governments didn’t keep up with how technology advancements affected workplaces, “and that needs to be done more on a regular basis,” he said.

McNaughton’s pair of identically-named Working for Workers acts were two of the PC government’s signature bills in the final year of Premier Doug Ford’s first mandate. Their passage requires employers of more than 25 people to write right-to-disconnect and electronic-monitoring policies, and created the Digital Platform Workers’ Rights Act, giving workers for companies like Uber or Lyft in the gig economy rights that more closely resemble those of traditional employees. While critics have pointed out imperfections with these PC-passed laws, each is the first of its kind in Ontario.

“I think there’s more opportunity to do more around all of those things, quite frankly,” McNaughton said. “I’ve always said this is just the start. There’s going to be more to come.”

Since assuming the role of labour minister three-and-a-half years ago, McNaughton has made a point of revitalizing the relationship between the PCs and private-sector labour leaders and unions. He said maintaining this rapport and improving conditions for employees will be at the centre of his attention as the PCs take on governing with a strengthened majority.

“Certainly I’m continuing to visit and meet with workers and labour leaders across the province to really listen for ideas on how we can provide more opportunities for our workers for bigger paycheques, and also more ways to strengthen health and safety in workplaces,” McNaughton said. “That’s my top priority.”

“There is going to be more to come on this soon,” he added, noting he couldn’t say when exactly the government would next introduce new labour law changes, or otherwise move to improve conditions for workers.

OTHER NEWS

Provinces demand more control over immigration to combat labour shortage

Due to the nationwide labour shortage, several provincial immigration ministers say they want more control over the immigration process, and have sent a letter to their federal counterpart calling for change.

Ministers from Ontario, Alberta, Saskatchewan, and Manitoba are calling on Sean Fraser, Canada’s minister of immigration, refugees and citizenship, to allow their provinces to select more immigrants “with the skills they need most” in a letter sent Tuesday night.

“We need the ability to respond to the rapidly evolving needs of specific areas and communities, with a flexible system that we can adapt to changing economic and humanitarian needs,” the letter states.

Ahead of a meeting with Fraser and their fellow immigration ministers in Saint John, N.B., they say Canada needs to do more to attract and retain workers — particularly in skilled trades. They say provinces should be allowed to recruit workers and offer them good local jobs. The letter says provinces know their local economies best, and can choose newcomers to Canada who have “the greatest chance of success.”

Of the 198,085 people who immigrated to Ontario last year, the province was allowed to select 9,000— about 4.5 per cent— through the Ontario Immigrant Nominee Program, which “recognizes and nominates people for permanent residence who have the skills and experience the Ontario economy needs,” according to the ministry.

Monte McNaughton, Ontario’s minister of labour, immigration, training and skills development, told CBC Toronto the province wanted the federal government to double its allocation to select 18,000 skilled immigrants of the 211,000 coming to Ontario this year. It was given an increase of 700.

According to data supplied by the Ontario labour ministry, most of the four provinces with the highest immigration numbers in 2021 had similarly low percentages of immigrants they were allowed to select. Alberta was allocated 15 per cent of its 39,950 immigrants, and British Columbia 9.3 per cent of its 69,270 newcomers. The only exception was Quebec, which selected 55.8 per cent of its 50,170 immigrants.

NEWS FROM OTHER COUNTRIES

Bank of England raises rates by most since 1995, warns of long recession

The Bank of England unleashed its largest rate increase hike in 27 years as it warned the U.K. is heading for more than a year of recession due to soaring inflation. The half-point increase to 1.75 per cent was backed by eight of the bank’s nine policy makers, who also kept up a pledge to act forcefully again in the future if needed, potentially putting similar hikes on the table for coming meetings.

The move came as officials predicted a U.K. recession will begin in the fourth quarter, and last all the way through next year. That’s the longest slump since the financial crisis. Officials expect the economy to shrink by around 2.1 per cent in total.

The BOE also boosted its forecast for the peak of inflation to 13.3 per cent in October amid a surge gas prices, and warned that price gains will remain elevated throughout 2023. That will sharpen a cost of living crisis that will see real disposable incomes fall more than at any time in around 60 years.

Even after billions of pounds of government support for struggling households, families are set to be around 5 per cent worse off by the end of 2023 with incomes falling both this year and next.

The half-point hike, unprecedented since the BOE gained independence in 1997, is a sign officials are calling time on the era of cheap money and scrambling to keep pace with a wave of global tightening from its international peers.

The BOE forecasts, based on a market path for interest rates that peaks at 3% next year, show the economy contracting about 1.25 per cent in 2023 and a further 0.25% the following year. Unemployment, meanwhile, will climb to 6.3 per cent by 2025.

UK Inflation is expected to peak above 13% later this year, and still be at 9.5 per cent in the third quarter of 2023. After that it will fall rapidly toward the 2 per cent target as the recession saps demand.

Support CFA’s Advocacy Efforts for 2022-23

The CFA needs your support – be active, be engaged, and we need your donation to fight for franchising and franchised businesses across Canada. By supporting CFA’s advocacy with a financial donation, you can help augment and strengthen our advocacy initiatives. you can donate directly through the CFA’s Advocacy Donation Page.

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Promote your job opportunities with the CFA

To take advantage of this new opportunity, please submit your job postings (in which include a job description and directions for how to apply) to Andrew Schopp at aschopp@cfa.ca. For any inquiries, please contact Jessi-Lyna Wan at jwan@cfa.ca.

Please note the Introductory Offer ends October 31, 2022. Any job posting submitted on November 1, 2022, and onwards will be subject to charges.

VISIT CFA’S ADVOCACY PAGE FOR MORE