A British Columbia non-profit dedicated to helping small businesses thrive has filed for bankruptcy.
Small Business BC (SBBC), a non-profit organization that was in part funded by both the provincial and federal governments filed for bankruptcy Dec. 5 just one month after receiving a $2.7 million grant from Pacific Economic Development Canada, a federal funding agency.
The news has the small business community in British Columbia worried, with many programs and services in limbo.
SBBC, which provided crucial support to entrepreneurs through grants, resources, and programs like the Export Navigator, is now listed as “permanently closed,” its website is offline, and its CEO is on leave, reported Business in Vancouver.
The sudden closure has drawn sharp criticism from the opposition. Conservative MLA and jobs critic Gavin Dew accused the B.C. NDP government of negligence, highlighting its significant funding and representation on SBBC’s board as evidence it should have been aware of the organization’s financial troubles.
“The government was not in the dark here. They cannot possibly have been surprised. (BC’s job ministry) has a board member on SBBC to steward their significant long-time contribution of taxpayers’ dollars,” Dew told True North in an emailed statement.
“We don’t really know what happened here, but we can assume the minister was briefed – either the current minister, the former minister, or both. If they knew a legacy organization with a close relationship to government was about to declare bankruptcy, why didn’t they do anything about it? How can anyone take seriously the NDP’s newfound zeal for supporting private sector jobs when they’re asleep at the switch on something this basic?”
The bankruptcy filing comes just a month after the federal government announced a $2.7 million “support” contribution to SBBC, with $88,000 already disbursed. In 2023 alone, SBBC received at least $4.6 million in funding from PacifiCan and the B.C. Ministry of Jobs, Economic Development, and Innovation.
Despite substantial government support, SBBC’s financial situation had been deteriorating. While the organization boasted assets of $10.6 million, including $9.2 million in restricted cash, it ran a $38,000 deficit in 2023, a stark contrast to the nearly $500,000 surplus recorded in 2022.
The impact of SBBC’s bankruptcy on small businesses in B.C. is yet to be fully determined. With challenges such as inflation, labor constraints, and supply chain issues already impacting the sector, the loss of SBBC’s support services adds another layer of difficulty for entrepreneurs.
