Disclaimer: This article does not endorse any political party or candidate.
The upcoming snap election on September 20th, 2021 will soon decide what political party will be elected in the Canadian 44th federal election. One of the major reasons for this snap election being called is that the Liberal Party is looking to gain a majority control over the federal government.
Funding related to COVID-19 recovery is one of the main concerns for each party during this election.
There are many political parties in the running to be elected in the Canadian Federal election and this article will focus on the four most likely outcomes and their impact on the current and future federal grant and loan programs offered to Canadian businesses. Please keep in mind that all Canadian provincial funding programs are not impacted to the same extent during a federal election, although might also be altered or discontinued following the election if they were federally influenced or funded.
What Will Happen to Federal Funding Applications During the Election?
During this time many Canadian federal funding programs will accept applications and review them, however any larger programs that require a Minister to sign off on them will be temporarily delayed until after the new/retained Prime Minister has been determined.
If the Liberal government remains in power, decisions on funding programs will likely be resumed in a matter of weeks. If there a new party is elected, this temporary pause in decisions can last several months while the new party transitions into parliament and new Ministers are appointed.
Federal programs that don’t require a Minster sign-off such as hiring & training programs, COVID-19 relief funding, or Provincial grant programs will mostly continue to operate normally unless they were federally influenced.
Outcome #1: Liberals Stay in Power as a Minority Government
If the Liberals maintain leadership with a minority government, then it’s likely that established funding programs will carry through with the rest of their funding terms. This means that established federal government funding programs that focus on COVID-19 recovery, job retention and growth, clean technology, and R&D funding programs will continue on their current trajectory. All program verdicts that were paused during the election will resume relatively shortly if the Liberals remain in power.
Programs such as Strategic Innovation Fund (SIF), Autonomous Vehicle Innovation Network (AVIN), and Innovative Solutions Canada (ISC) can all expect to continue to receive funding unless otherwise specified in the Liberal Party’s campaign.
Outcome #2: Liberals Become a Majority Government
If the Liberals are elected with a majority government, the results of Outcome #1 will still hold true, with the Liberal Party now having greater control over existing funding programs as well as increased power to enforce new initiatives. The Liberals will continue with their agenda by adding additional funds to the programs mentioned in their political campaign, as well as new programs created for COVID-19 wage subsidies, sustainability and environmental Funding, and clean technology.
Outcome #3: Conservatives are Elected
If the Conservative Party wins the Federal Election, we can expect several changes. Once the government formally takes power, new Ministers will be assigned, overseeing the party’s mandate at a department and agency level. It’s expected that federal funding initiatives would be altered, replaced, or discontinued as a result of the change in power.
Many of the programs introduced would revolve around COVID-19 recovery, maintaining and adding new jobs, and business growth programs. It’s also possible that existing programs could be rebranded and relaunched under the new government.
Outcome #4: NDP is Elected
Under this scenario, Canada would see its first Federal NDP government formed. This could result in significant changes to the funding landscape. Historically, NDP governments at the provincial level have tended towards direct supports aimed at supporting individuals and families, as opposed to large-scale investments in businesses.
Stay Informed About Canadian Government Funding Updates
The 2021 snap election will make large scale changes to Canadian government funding programs and Mentor Works will keep you updated with new developments and program announcements.
To stay up to date on business incentives, including Canadian government grants, loans, and COVID-19 recovery funding, please subscribe to Mentor Works’ weekly Government Funding Snapshot™ newsletter or view our upcoming webinars and events.