Small Business BC's Sudden Bankruptcy Raises Questions About Government Oversight

Small Business BC (SBBC), a non-profit organization dedicated to supporting British Columbia's entrepreneurs, filed for bankruptcy on December 5, 2024, ceasing operations and laying off its staff. This unexpected closure has prompted scrutiny of the provincial and federal governments' oversight, as both were funders of the organization.

SBBC's website now displays a notice stating that MNP Ltd. has been appointed as the trustee overseeing the bankruptcy proceedings.

The bankruptcy filing occurred just a month after Pacific Economic Development Canada (PacifiCan) announced a $2.7 million funding package for SBBC. A PacifiCan spokesperson told Glacier Media that approximately $88,000 of this amount had been disbursed before payments were suspended.

Financial records indicate that SBBC's operating budget more than doubled from $3.34 million in 2019 to over $7 million in 2023. Despite this increase, the organization reported an operational deficit of $38,000 in 2023, a significant decline from a nearly $500,000 surplus in 2022.

Small Business BC originated as a provincial initiative following Expo '86, aimed at supporting businesses in leveraging economic opportunities from the event. It transitioned into an independent non-profit organization in 2002. In 2023, it received at least $4.6 million from federal and provincial sources, including PacifiCan and BC's Ministry of Jobs, Economic Development and Innovation, to support programs such as the Workplace Accessibility Grant and Export Navigator, per Glacier Media.

As of publication, PacifiCan and the BC Ministry of Jobs, Economic Development and Innovation have not issued statements regarding SBBC's bankruptcy. Coastal Front has reached out to both for comment.

Government Oversight Criticized

The collapse of Small Business BC has sparked significant concerns about the adequacy of government oversight. Gavin Dew, BC Conservatives' critic for the Ministry of Jobs, Economic Development, and Innovation, questioned the government’s apparent lack of intervention.

"The government was not in the dark here. They cannot possibly have been surprised," Dew told Coastal Front, pointing to the Ministry’s representation on SBBC’s board and the long-standing relationship between the organization and government funders.

Dew also highlighted the absence of timely action, adding, “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?”

Dew questioned the NDP government’s broader commitment to economic development, stating, “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?”