TORONTO, June 6, 2024 /CNW/ - The Canadian Federation of Independent Business (CFIB) issued an open letter to all Mayors and Councillors ahead of the Federation of Canadian Municipalities (FCM) meeting in Calgary this weekend highlighting the need to for municipal governments to to mitigate the negative impacts of lengthy construction projects on local small businesses.
While major infrastructure projects are essential for urban development, they can be highly disruptive to small businesses. CFIB's report, Paving a Smoother Road, shows that between 2012 and 2017, 41% of Canadian small businesses were disrupted by local construction projects. Of those, 65,000 small businesses were forced to borrow money, relocate, or close.
It is therefore not surprising that 68% of small businesses believe they should be financially compensated when a lengthy public construction project significantly affects their operations.
If direct compensation is not feasible, municipalities should consider offering tax holidays (i.e. temporarily waive property taxes for affected businesses). Additionally, municipalities should strive for better planning and communication with the local businesses ahead of construction projects. Finally, it is important projects are completed within a strict timeline, with penalties in place for construction work that goes beyond its expected end date.
As they meet in Calgary this week, CFIB recommends municipal leaders look to the examples set by Montreal, Quebec City and Calgary, and consider implementing similar construction mitigation programs to support small businesses. These programs are vital to maintaining the health of our local economies and helping small businesses survive disruptions caused by construction.
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
SOURCE Canadian Federation of Independent Business
For media enquiries or interviews, please contact: Maud Lariviere, CFIB, 647-464-2814, [email protected]
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