Manitoba Small Business Venture Capital Tax Credit Program
Winnipeg, MN, Canada
New-investment small business tax credit in Manitoba
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grant_single|eligibleFinancing
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- grant_single|timelineUnspecified
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Tax Credits
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- Government of Manitoba
- Department of Growth, Enterprise and Trade (MN)
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Through this program, small businesses can offset the costs of issuing new equity investments of $100,000 to $10 million.
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This program requires companies to operate from Manitoba, Canada, to benefit from the tax credit. Eligible companies must have a permanent establishment within the province.
- Manitoba, Canada
grant_single|admissibleProjectsExample
$150,000
Equip a start-up farm with advanced irrigation systems and renewable energy sources
$150,000
Install energy-efficient systems in a local community center to reduce operating costs
$250,000
Expand an artisanal brewery to increase production and distribution capabilities
$200,000
Develop an eco-friendly packaging line for an organic food products company
$300,000
Modernize a local health clinic's medical equipment to improve patient care
$200,000
Create a co-working space for local freelancers and small businesses
grant_single_labels|admissibility
The Small Business Venture Capital Tax Credit is available to corporations that meet specific criteria related to their operations and structure.
- The corporation must be a Canadian Controlled Private Corporation (CCPC) with a permanent establishment in Manitoba.
- Assets must be used in active business.
- Revenue must be generated from active business.
- There must be at least $25,000 cash equity already invested.
- The corporation must qualify as a small business with either annual revenue less than $15 million or less than 100 full-time equivalent employees.
- At least 25% of the employees must reside in Manitoba.
- The corporation must not be a Reporting Issuer.
grant_eligibility_criteria|who_can_apply
The Small Business Venture Capital Tax Credit is designed for investors who wish to invest in eligible Manitoba companies. Eligible companies must meet specific criteria, primarily being Canadian Controlled Private Corporations with a permanent establishment in Manitoba.
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Yes, certain types of companies are not eligible for this grant.
An applicant whose principal business activity falls into any one of specific activities will not be considered eligible to participate in the SBVC program:
- Professional services that are regulated by a governing body which is established under an Act of the Legislature
- Providing management, administrative, financial or other similar services
- Leasing, developing or selling real property
- Exploring for, developing or processing mineral, oil or gas resources
- Farming, except for commercial crop production in a climate controlled environment, fishing, hunting, or similar activity but NOT processing products from these activities
- Holding, operating or granting franchises
- Operating a restaurant, lounge, bar or similar establishment, except for brewpubs
- Performing arts, amusement or gaming activities
- Providing educational, health care, social or other similar service
grant_eligibility_criteria|eligible_expenses
The SBVC share proceeds must be used within the holding period (three years from the date shares issued) for the purposes approved in the application. The SBVC share proceeds cannot be used for any of the following purposes:
- To invest outside Manitoba
- To lend to others
- To pay for a business re-organization
- To pay a dividend or return capital to a shareholder
- To pay an amount owing to a shareholder, an affiliate, or a person related to a shareholder or affiliate
- To purchase, develop or maintain land or equipment for sports
- To support an ineligible activity
- To support an activity that does not promote economic development or is contrary to public policy
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is Manitoba, Canada. The eligible companies must have a permanent establishment within the province.
- Must be a Canadian Controlled Private Corporation (CCPC) with a permanent establishment in Manitoba
- At least 25% of the company's employees must reside in Manitoba
grant_single_labels|criteria
There are no explicit evaluation and selection criteria outlined for the Small Business Venture Capital Tax Credit program. However, applicants must meet several eligibility requirements to issue shares under the program.
- A Canadian Controlled Private Corporation (CCPC) with a permanent establishment in Manitoba;
- All or substantially all assets used in active business;
- All or substantially all revenue generated from active business;
- At least $25,000 cash equity already invested;
- An annual revenue of less than $15 million or less than 100 full-time equivalent employees;
- At least 25% of employees reside in Manitoba;
- Not a Reporting Issuer as defined in The Securities Act (Manitoba);
- Previously issued less than $10 million in eligible shares either on its own or combined with an affiliated company.
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Review Program Guidelines
- Download and review the Program Guidelines (PDF) to understand the requirements and application process.
- Ensure your corporation meets the eligibility criteria, including being a Canadian Controlled Private Corporation with a permanent establishment in Manitoba.
- Step 2: Prepare Required Documentation
- Prepare the necessary documents including proof of CCPC status, proof of active business operations, and financial statements showing $25,000 cash equity already invested.
- Gather information on your annual revenue and full-time equivalent employees.
- Step 3: Complete Application Form
- Download and complete the Application Form (PDF).
- Provide all required details and ensure the information is accurate and complete.
- Step 4: Submit Application
- Submit the completed application form along with all required documentation to the Economic Programs Branch at 1010 - 259 Portage Avenue, Winnipeg, MB R3B 3P4.
- Consider sending your application via email to ecdevprograms@gov.mb.ca as an alternative submission method.
- Step 5: Await Response
- Wait for confirmation and further instruction from the Economic Programs Branch regarding your application status.
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The program's information includes details about required submissions, eligibility criteria, and penalties for non-compliance.
- Applications for the SBVC tax credit program can be submitted online or via email.
- An application must include recent annual financial statements, income tax return, notice of assessment, terms and conditions for shares, and a description of proposed use of proceeds.
- The program requires a minimum investment of $10,000 per investor while the maximum investment eligible for the tax credit is $500,000 per company.
- The tax credit is non-refundable and can be carried forward for up to ten years or back for three years.
- Shares must be held for a minimum of three years, during which prohibited uses include investing outside Manitoba or paying dividends to shareholders.
- Certain business activities such as professional services, leasing, and farming are ineligible for the program.
- Approved applicants must file an annual information return including financial statements and a questionnaire for program effectiveness evaluation.
grant_single_labels|contact
ecdevprograms@gov.mb.ca
204-945-2475
Apply to this program
Unlock Equity Investment Opportunities with Manitoba's Tax Credit
The Small Business Venture Capital Tax Credit (SBVCTC) is a robust initiative by the Manitoba government to stimulate economic growth by attracting capital investment into local enterprises. It offers a 45% non-refundable tax credit to individuals and corporations investing in eligible businesses, thereby incentivizing financial backing for startups and small-scale operations.
Understanding the Small Business Venture Capital Tax Credit Program
The Small Business Venture Capital Tax Credit Program is a strategic fiscal tool designed to invigorate Manitoba’s entrepreneurial landscape. The program’s primary mission is to bolster small enterprises, which form the backbone of the province’s economy, by facilitating access to much-needed capital. This initiative is crucial for enterprises seeking to advance their competitive edge in a dynamic market. By offering a 45% tax credit on investments made in eligible small businesses, the program not only shields investors from financial risk but also amplifies their potential returns, creating a compelling case for investment in Manitoba.
Eligible corporations must be Canadian Controlled Private Corporations (CCPCs) with a solid operational base within Manitoba. The program is particularly beneficial for smaller firms with annual revenues not exceeding $15 million or those employing fewer than 100 full-time staff. These businesses, which often face challenges in securing traditional forms of financing, find in the SBVCTC a lifeline for growth and sustainability.
Investors, whether individuals or corporate entities, are attracted to the program due not just to the substantial tax credit but also the solidity of the enterprises it supports. Firms eligible under the SBVCTC must have their operational foundations firmly set in active business pursuits in Manitoba, contributing significantly to the local job market and broader economic goals. By stipulating that a significant portion of the workforce resides in Manitoba, the program ensures that the economic benefits are felt in the community.
The tax credit facilitates a maximum investment of $500,000 per investor into any one company, promoting diversification in investment portfolios and encouraging widespread economic participation. This cap ensures a balanced and fair distribution of fine capital among multiple enterprises, broadening the scope for economic development across sectors.
Additionally, the program has laid down clear and rigorous compliance criteria to safeguard investor interests. Companies must demonstrate competent financial health and governance structures before securing the privilege to issue shares under this initiative. This compliance framework builds investor confidence, which is paramount in driving large-scale capital deployment into nascent businesses.
An equally important feature of the program is its non-refundability. This characteristic underscores the government's confidence in the potential of local enterprises while encouraging persistent investor engagement in the economic fabric of Manitoba. The non-refundable nature of the credit also aligns with provincial efforts to forge sustainable and long-term business relationships.
For prospective investors and enterprises, the path to benefiting from the tax credit is streamlined through straightforward application processes supported by comprehensive guidelines. The Manitoba Economic Programs Branch is committed to offering informational support through easily accessible resources and direct engagement touchpoints, ensuring that participants fully grasp the program's strategic potential.
The Small Business Venture Capital Tax Credit not only catalyzes the financial viability of emerging businesses but fortifies Manitoba’s position as a magnet for forward-thinking investors. Through this initiative, the province continues to underscore its commitment to sustainable economic growth, innovation, and workforce development. This venture is a promising opportunity for both align investors and entrepreneurs keen to contribute to Manitoba’s economic dynamism.
