B.C. non-profit that supported small businesses declares bankruptcy

A non-profit organization that supported small businesses across British Columbia has ceased operations due to financial challenges. 

Small Business B.C. (SBBC) was placed under bankruptcy on Dec. 5. MNP Ltd. has been appointed its trustee.

SBBC was established as a non-profit in 2002 and provided entrepreneurs at various skill levels guidance and resources to help build their businesses. For example, businesses could book consultations with advisors or get advice on importing and exporting products. 

SBBC had served over 880,000 clients, according to its 2022-2023 annual report.

But financial statements from previous years reveal the organization's operating cost had grown substantially in recent years with the organization reporting a deficit of $37,608 for 2023, compared to a surplus of $496,118 in 2022. 

CBC News has sent multiple interview requests to SBBC but has yet to hear back. The organization's social media accounts and website do not have any information on why it declared bankruptcy. 

It was regularly posting on social media in recent days until last Monday, when it wished its followers a "wonderful holiday season."

'Serious repercussions'

Emily Boston, senior policy analyst with the Canadian Federation of Independent Business (CFIB), said the closure of SBBC "has serious repercussions for small businesses that need stability and support during this time."

"Small Business B.C. did provide great services and resources, especially for entrepreneurs that are just getting started, because there was a low-cost barrier there because it was a government-funded organization," Boston said.

She noted SBBC's shutdown comes amid broader struggles for small businesses in the province.

More than 30 per cent of small businesses in B.C. report being in weak or critical financial health, according to CFIB.

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Conservative MLA calls for more transparency

The bankruptcy has raised questions about the oversight of SBBC, with B.C. Conservative MLA Gavin Dew criticizing the provincial government's handling of the situation. 

"I don't think you, in good conscience, can just let an organization like that fall apart," said Dew, who represents Kelowna-Mission. "There clearly needs to be more transparency. This is just an unacceptable situation where you have an organization ... that supported thousands of small businesses [that has] gone bankrupt."

Some of the non-profit's programs were funded by both the province and the federal government. 

The Pacific Economic Development Agency of Canada (PacifiCan), said it had a $2.7 million, 30-month agreement with SBBC to support it with operating costs starting this past October.

The federal agency also had a $3.6 million agreement set to end in March 2026. PacifiCan confirmed with CBC News that SBBC's bankruptcy put the organization in default of its funding agreements and, as a result, the agency has suspended further payments under these agreements.

Harjit Sajjan, the minister responsible for PacifiCan, said SBBC's closure "will have a profound impact on B.C. entrepreneurs."

"I recognize that this news greatly impacts SBBC staff, who work hard to support B.C. small businesses, and is especially difficult considering the holiday season," Sajjan added.

Premier David Eby confirmed that the provincial government had been working with SBBC to address its financial challenges.

"Our priority now is making sure that any taxpayer dollars that were in there are protected, that we're making sure that that money is recovered by the province," he said during an unrelated news conference on Monday.