Manitoba Small Business Venture Capital Tax Credit Program

Q: How much funding can be received?

Manitoba Small Business Venture Capital Tax Credit Program Funds up to 45% of admissible expenses, capped at $500000 per project.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Manitoba Small Business Venture Capital Tax Credit Program a grant, loan, or tax credit?

Manitoba Small Business Venture Capital Tax Credit Program is a Tax Credits

Q: Who are the financial supporters of the Manitoba Small Business Venture Capital Tax Credit Program?

Manitoba Small Business Venture Capital Tax Credit Program is funded by Government of Manitoba, Department of Growth, Enterprise and Trade (MN)

Q: Who is eligible for the Manitoba Small Business Venture Capital Tax Credit Program program?

To be eligible for the Manitoba Small Business Venture Capital Tax Credit Program program, you must: • The corporation must be a Canadian Controlled Private Corporation (CCPC) with a permanent establishment in Manitoba. • Must be a small business with annual revenue less than $15 million or fewer than 100 full-time equivalent employees. • At least 25% of employees must reside in Manitoba.

Q: Who can I contact for more information about the Manitoba Small Business Venture Capital Tax Credit Program?

You can contact Government of Manitoba by email at ecdevprograms@gov.mb.ca or by phone at 204-945-2475.

Q: Where is the Manitoba Small Business Venture Capital Tax Credit Program available?

The Manitoba Small Business Venture Capital Tax Credit Program program is available the province of MN.

Last Update: July 22, 2025

MN, Canada

New-investment small business tax credit in Manitoba

At a glance

Eligible Funding

From $10,000 to $500,000
Up to 45% of project cost

Timeline

Unspecified

Financing Type

Tax Credits

Eligible Industries

All industries

Funds Providers

Unspecified

Program status

Open

Overview

Through this program, small businesses can offset the costs of issuing new equity investments of $100,000 to $10 million.

Financing terms and conditions

This program offers specific conditions for investors who provide equity capital to eligible Manitoba enterprises, aimed at fostering economic growth through investment incentives.

Investors receive a non-refundable tax credit of up to 45%.
Maximum investment allowed by an investor per company is $500,000.
Approved corporations can issue shares up to a total lifetime limit of $10 million.

Activities funded

This grant supports small businesses in Manitoba by providing tax incentives for investments in eligible enterprises. The program aims to encourage equity investment which fosters growth and sustainability in the local business landscape.

Equity investments in Canadian Controlled Private Corporations (CCPC) with active business operations in Manitoba.
Supporting small businesses with annual revenue of less than $15 million or fewer than 100 employees.

Examples of admissible projects:

$ 150,000

Install energy-efficient systems in a local community center to reduce operating costs

$ 150,000

Equip a start-up farm with advanced irrigation systems and renewable energy sources

$ 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

Eligibility

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.

Who is eligible?

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.

Who is not eligible

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

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

Eligible geographic areas

This program is targeted at companies in Manitoba. All companies must have a permanent establishment in Manitoba to be eligible.

Companies with a physical location in Manitoba.

Selection 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.

How to apply

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.

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.

Complete Application Form

Download and complete the Application Form (PDF).
Provide all required details and ensure the information is accurate and complete.

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.

Await Response

Wait for confirmation and further instruction from the Economic Programs Branch regarding your application status.

Additional information

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.

Contacts

ecdevprograms@gov.mb.ca

204-945-2475

Apply to this program

Frequently Asked Questions about the Manitoba Small Business Venture Capital Tax Credit Program Program

Here are answers to the most common questions about the Manitoba Small Business Venture Capital Tax Credit Program. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.