Source change captured:
Small Business Investor Tax Credit Program
Corporations that intend to make a specified issue of shares or convertible debentures and meet the criteria set out in section 9.
Overview
At a glance
Funding available
- Increase social or community impact
- Develop strategic partnerships
- Maximum amount : 125,000 $
- Up to 50% of project cost
Eligible candidates
- All industries
- New Brunswick
- For-profit business
- All revenue ranges
- All organization sizes
- Startups
Next Steps
Availability timeline
Activities funded
The Small Business Investor Tax Credit Program in New Brunswick primarily aids projects that enhance economic development through capital investment in small businesses and related community associations. Its focus lies on initiatives that can yield active business income and maximize local employment.
- Capital investment plans aimed at fostering active business operations within New Brunswick.
- Community economic development plans aimed at enhancing local economic activity in specified communities within New Brunswick.
Documents Needed
- Application for registration on a form provided by the Minister
- Certified copy of the instrument of incorporation
- Copy of the corporation’s investment plan
- Most recent financial statements of the corporation and its associated corporations, reviewed by a licensed or registered member of an accounting association regulated under a private Act of the Province
- Certificate in writing signed by all the directors of the corporation certifying that the application information is complete and accurate
Sources and recorded changes
- Source change captured
- Change recorded
- Record updated
A captured source change or record update does not confirm eligibility. Check the funder’s current rules before applying.
Small Business Investor Tax Credit Act updated
The act now expands eligible investments to include convertible debentures and adds new strategic-sector rules, higher limits, and updated disclosure requirements.
The Small Business Investor Tax Credit Act now includes convertible debentures throughout the act, and the wording for eligible investments and disposals has been updated accordingly. New strategic-sector rules also add NAICS-based sector coding, separate treatment for strategic-sector issuers, and updated application and certificate disclosure requirements. The funding terms changed materially, including a higher total assets threshold from $40M to $50M and larger tax credit/investment caps for strategic-sector investments. The supporting regulation and table-of-contents pages also show updated section names and structure, but the main substantive change is the broader investment eligibility and revised sector-based rules.
Program guide
Eligibility
Who is eligible?
- Corporations that intend to make a specified issue of shares or convertible debentures and meet the criteria set out in section 9.
- Corporations or associations that intend to make a specified issue of shares and meet the criteria set out in section 13.5.
Who is not eligible
- Individuals who are not residents of New Brunswick or are under 19 years of age.
- Corporations or trusts without a permanent establishment in New Brunswick.
Ineligible Costs and Activities
- Lending
- Purchasing the shares of any other person
- Investing outside New Brunswick
Eligible geographic areas
This program's eligibility with respect to geographical areas is inherently tied to entities operating or residing within the province of New Brunswick. The focus is on fostering economic development within its communities.
- Businesses that are incorporated or registered to carry on business in New Brunswick.
- Individuals who are residents of New Brunswick.
- Community Economic Development Corporations or Associations located in New Brunswick.
Selection criteria
The evaluation and selection of projects for the Small Business Investor Tax Credit Program focus on the adequacy of the investment or community economic development plans and the compliance of the submission with statutory requirements. However, no specific point scores are allocated in the provided information.
- Assessment of the investment plan or community economic development plan's alignment with the spirit and intent of the Small Business Investor Tax Credit Act and Regulations.
- Evaluation of how the proposed use of capital will benefit the operations within the defined community or corporation located in New Brunswick.
- Verification of eligibility criteria for the applicant corporation or community economic development corporation or association, including incorporation, registration, and operational criteria.
- Compliance with the mandated use of funds, such as restrictions on lending, purchasing shares, or investing outside New Brunswick.
- Ensuring the issuance of newly issued, fully paid shares without inclusion of replacement shares.
- Compliance with shareholding and capital requirements, such as minimum investment amounts and holding periods.
How to apply
- Deliver the application to the Minister on a form provided by the Minister.
Processing and Agreement
- The Minister may register a corporation, with any conditions considered appropriate, if the statutory criteria are met.
- The Minister shall not register a corporation unless satisfied that the required capital will be raised, eligible shares will be issued to the eligible investors named in the investment plan, and the deductible amounts under section 61.1 of the New Brunswick Income Tax Act will not exceed the prescribed amount.
- If the Minister registers the corporation, a certificate of registration must be issued and the corporation is deemed registered as of the date on the certificate.
Additional information
- Any corporation carrying on business in a strategic sector must indicate the NAICS code assigned to that sector in its application for registration.
Contacts
