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The Ministry of Economic Development offers four key programs to help small
businesses in British Columbia access capital for business start-up and
expansion.
The Investment Capital Programs offered by the Investment Capital Branch, offer
tax credits to investors making equity capital investments directly in British
Columbia based small businesses or indirectly through specialized venture
capital investment funds. These programs have the capacity to support up to $168
million of investment capital annually and are designed to support continuous
access to early-stage venture capital for small businesses.
Direct Investment
The direct investment model is suited for small businesses raising capital
directly from arms-length investors. Investors residing in British Columbia earn
tax credits for purchasing shares in an Eligible Business Corporation or
Employee Share Ownership Plan.
Portfolio Investing
Venture Capital Corporations and Employee Venture Capital Corporations are
holding companies that raise investment capital from British Columbia residents
and then invest these funds into one or more eligible businesses. This
investment structure is ideal for investors who want to pool their capital with
others and rely on professional management to select a diverse portfolio of
investment opportunities.
Legislation
Small Business Venture Capital Act (SBVCA)
Employee Investment Act
(EIA)
Responsibility
BC Ministry of Economic Development (Provincial)
Online Resources
www.equitycapital.gov.bc.ca
Investment Capital Program Guidelines
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