How much funding can be received?

The Small Business Venture Capital Program in British Columbia aims to incentivize investments in local small businesses by offering a 30% tax credit to investors. Eligible activities include manufacturing, processing, clean technology development, destination tourism, interactive digital media product development, and research and development of proprietary technologies. Businesses must be substantially engaged in these qualifying activities to apply.

grant_single_labels|terms_and_conditions

This grant provides tax credits as a financial modality aimed at encouraging investments in small businesses in British Columbia. The incentives are specifically structured to appeal to both individual and corporate investors.

B.C.-based individual and corporate investors receive a 30% tax credit on their investments in either Eligible Business Corporations (EBCs) or Venture Capital Corporations (VCCs).
Individual investors can invest up to $400,000 per year, with refundable tax credits applicable, while corporations have no limit but receive non-refundable tax credits.
Unused tax credits may be carried forward up to four subsequent years for both individual and corporate investors.
Investments made through RRSPs, RRIFs, and TFSAs are eligible for tax credits, and shares can be transferred into these savings accounts.
Investors in EBCs or VCCs must hold shares for at least five years to secure the tax credit benefits.
Tax credits can only be claimed by individuals or corporations required to file a B.C. tax return.

grant_single_labels|projects

This program encourages investment in promising business sectors within British Columbia by offering tax incentives to investors. Eligible activities focus on innovation, technology, and manufacturing that drive economic growth in the province.

Manufacturing and processing of goods.
Destination tourism.
Research and development of proprietary technology.
Development of interactive digital media products.
Development of clean technology.
Advanced commercialization efforts.

grant_single_labels|admissibility

Eligibility for the Small Business Venture Capital Program requires businesses to meet certain criteria related to their operations and investment activities.

The business must be incorporated and registered to operate in British Columbia (B.C.).
The business must have a permanent place of business in B.C.
The business must have at least 80% of its assets located in B.C.
The business must pay at least 75% of its annual wages & salaries to B.C. employees (50% if exporting).
The business must be substantially engaged in one or more of the qualifying activities, such as manufacturing, clean technology development, destination tourism, or research and development of proprietary technologies.
The business must have raised at least $25,000 in equity capital.
Together with corporate affiliates, the business must not have more than 100 employees.

grant_eligibility_criteria|who_can_apply

Eligible businesses for the Small Business Venture Capital Program are those that are substantially engaged in a qualifying activity such as manufacturing, processing, development of clean technologies, destination tourism, advanced commercialization, development of an interactive digital media product, and research and development of proprietary technologies. Additionally, businesses must be incorporated and registered to operate in British Columbia, have a permanent place of business in B.C., hold at least 80% of their assets in B.C., and pay at least 75% of their wages and salaries to B.C. employees. The businesses must also have raised at least $25,000 in equity capital to apply as an Eligible Business Corporation (EBC). Investors, whether individuals or corporations, must be required to file a B.C. tax return to claim the tax credit associated with this program.

grant_eligibility_criteria|who_cannot_apply

There are specific industries and company types that are not eligible for this program based on their primary activities or business structure. These restrictions are implemented to ensure alignment with strategic objectives and the intended sectors of the program.

Businesses not substantially engaged in a qualifying activity, such as non-manufacturing services.
Companies lacking a significant portion of their operations, assets, or wages in British Columbia.
Corporations with more than 100 employees combined with affiliates.
Entities controlled by individuals or groups owning 50% or more voting shares.
Firms primarily involved in resource extraction and retailing without substantial manufacturing or processing activities.

grant_eligibility_criteria|eligible_expenses

The Small Business Venture Capital Program in British Columbia aims to support the growth of small businesses by encouraging investment in sectors that drive innovation and economic development. Eligible projects span a variety of industries and focus on technological advancement and commercialization.

Manufacturing and processing of goods
Development of destination tourism experiences
Research and development of proprietary technology
Development of interactive digital media products
Advancement of clean technology
Advanced commercialization of innovative products

grant_eligibility_criteria|zone

This program is specifically designed for companies based in a defined geographical region as stated by the related investment capital requirements. Eligible companies are primarily those operating within the borders to align with local economic growth objectives.

Companies must be based in British Columbia, Canada.
The business must have a permanent place of business within British Columbia.
At least 80% of the business assets must be located in British Columbia.

grant_single_labels|criteria

grant_single_labels|register

Here are the steps to apply for the Small Business Venture Capital Program as an Eligible Business Corporation (EBC):

Step 1: Confirm Eligibility
- Ensure your business is incorporated and operates in B.C. as specified under the program guidelines.
- Verify that your business is substantially engaged in one or more qualifying activities such as manufacturing, technology development, or clean tech.
Step 2: Prepare Registration Materials
- Compile a comprehensive business plan/executive summary highlighting your core activities and financial outlook.
- Ensure documentation reflects at least 50% engagement in qualifying activities as per the program guidelines.
- Secure at least $25,000 in equity capital before registration.
Step 3: Submit Registration Application
- Complete the registration application for your business to become an EBC.
- Submit all required documents via the designated application portal or by contacting the program's administrative office.
- Ensure all information is accurate to prevent registration delays.
Step 4: Receive Authorization
- Await application review which typically takes up to 10 business days.
- Receive authorization confirming your status as an EBC and permission to raise equity capital.
Step 5: Raise Investment
- Begin raising investments directly from eligible B.C. investors who will benefit from a 30% tax credit.
- Utilize resources like the Public Register of EBCs to attract potential investors.
Step 6: Confirm and Document Investments
- Ensure incoming investments meet program requirements and classify eligible for tax credits.
- Maintain thorough records and documentation of all investment transactions.

grant_single_labels|otherInfo

The Small Business Venture Capital Program offers various advantages for both investors and eligible businesses in British Columbia. It supports qualifying activities, offers significant tax credits, and has specific registration and performance criteria.

Businesses must be incorporated and registered to operate in B.C.
Businesses must have a permanent place of business in B.C. and allocate at least 80% of their assets in B.C.
75% of annual wages and salaries must be paid to B.C. employees (or 50% if exporting).
Business activities must align with qualifying areas like manufacturing, clean technology, or digital media product development.
Investors receive a 30% tax credit which can be carried forward up to four subsequent years.
Eligible small businesses (ESBs) must have raised at least $25,000 in equity capital.
Venture Capital Corporations (VCCs) must raise a minimum of $50,000 in equity capital.
EBCs can directly raise capital from investors, bypassing the need to establish a VCC.
Investments made via RRSPs, RRIFs, and TFSAs are eligible for tax credits.
Convertible rights (SAFE investments) are eligible for tax credits at the time of investment.
Companies enrolled in other grant/tax incentive programs can also apply.
B.C. government does not guarantee the value of shares or the financial condition of the companies in the program.
There are no investment-matching services provided by the Ministry of Jobs, Trade and Technology as part of the program delivery.
Investors must verify EBCs' pre-approved authorization to raise tax credit-supported investment.

grant_single_labels|contact

InvestmentCapital@gov.bc.ca

1-800-665-6597

Apply to this program

Facilitating Early-Stage Investment in B.C. Small Businesses

The Small Business Venture Capital Program provides tax incentives to investors, encouraging investment into British Columbia's emerging businesses. This initiative aims to bolster the province's economic landscape by fostering entrepreneurial growth and development.

How the Small Business Venture Capital Program Bolsters B.C.'s Economy

The Small Business Venture Capital Program is a pivotal initiative aimed at stimulating economic activity in British Columbia by providing critical financial incentives to investors who support small businesses. By offering a generous 30% tax credit, this program lowers the financial barrier for investors, thereby increasing the flow of venture capital to local small businesses. This not only encourages more people to invest but also incentivizes active participation in business growth, a key factor for companies looking to scale operations and innovate within competitive markets.

The program's structure is designed to provide B.C.-based small businesses with consistent access to early-stage capital, enabling them to pursue strategic growth opportunities that might otherwise be inaccessible. By promoting direct investment through the Eligible Business Corporation (EBC) model, businesses can receive equity capital directly from investors without the complexities of establishing a Venture Capital Corporation (VCC), streamlining the investment process. This direct model is particularly favorable for investors who seek active involvement in their investments, allowing them to play a hands-on role in nurturing a company's development and facilitating potentially higher returns on their investments.

Critically, the program supports a diverse range of qualifying activities, ensuring that various industries can benefit from the venture capital tax credit. From the development of clean technologies and manufacturing to advanced research, tourism, and the commercialization of innovative digital media products, the scope is broad. Such diversity ensures that the program not only supports current economic drivers but also adapts to emerging market trends, thus future-proofing the local economy against global shifts.

Inclusion in the program and access to tax credits necessitate that businesses meet specific criteria, such as maintaining their primary operations within British Columbia and ensuring a significant portion of their expenditures and workforce are stationed locally. These provisions emphasize the program's commitment to reinforcing the local economy by maintaining high levels of employment and operational activity within the province. Additionally, the businesses must demonstrate substantial engagement in prescribed qualifying activities, facilitating a targeted approach that ensures investments are channeled into potential high-impact sectors.

Moreover, the Public Register of Eligible Business Corporations provides transparency, aiding both prospective investors and businesses in identifying current and valid investment opportunities. This ensures a well-matched relationship between companies in need of capital and investors seeking lucrative and impactful investment opportunities.

Overall, the Venture Capital Tax Credit Program significantly contributes to economic growth by linking investors with promising small enterprises, thereby fostering a thriving entrepreneurial ecosystem in British Columbia. By mitigating investment risk through tax incentives and ensuring investments feed directly into B.C.'s economic infrastructure, the program helps maintain a robust economic framework conducive to long-term business success and innovation across the province.