Federal budget announcement offers increased loan options to businesses

Tax relief and better access to loans were two positive outcomes for the food services sector from the federal budget announcements last week.

According to the Canadian Restaurant and Foodservices Association (CRFA), more than one million residents work in the industry which generates roughly 4 percent of the country's gross domestic product.

The CRFA is forecasting a decline in sales during 2009, but the positive budget news may help buoy the industry during the economic downturn.

One CRFA vice president noted, "Putting more disposable income in the hands of consumers, reducing the tax burden on small business owners, and allowing credit-worthy restaurant businesses to access much-needed lending are positive moves for our industry."

Running a small business requires access to cash, and the CRFA "strongly supported" the increase to the maximum loan guarantee under the Canada Small Business Financing Program and the increase in lending from the Business Development Bank of Canada.

The Tourism Industry Association of Canada also found a bright spot in the budget news. The group praised the over $800 million tagged for the tourism and travel sector.

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