Programme de crédit d'impôt pour capital de risque de petites entreprises ### 📋 Eligible Entities - Small businesses incorporated and resident in Canada - Canadian-controlled private corporations (CCPCs) - Businesses with active business operations (not passive investment companies) - Entities seeking to raise capital through equity investments - Companies not primarily engaged in real estate, resource extraction, or financial services (in most cases) - Businesses that meet revenue and asset thresholds as defined by provincial/federal regulations ### 💰 Funding Details - Investment Range: $100,000 to $10,000,000 in new equity placements - Mechanism: Tax credit offsetting investment costs (not direct grant funding) - Non-Repayable: This is a tax credit program; funds are recovered through tax reductions, not loans - Investor Incentive: Provides tax credits to investors who contribute capital, making investments more attractive - No Matching Required: Program does not require matching contributions from the business - Tax Benefit Structure: Credits reduce the cost basis of the investment for participating investors ### 🛠️ Approved Expenses - Equity Capital: New share purchases and equity investments in eligible small businesses - Working Capital: Funds raised can support operational and working capital needs - Business Growth: Expansion initiatives and scaling operations - Technology & Equipment: Capital investments in business infrastructure - Research & Development: Innovation and product development activities - Market Expansion: Geographic or market diversification efforts ### ⚠️ Conditions & Milestones - Investment Size Requirements: Minimum $100,000 per placement; aggregate cannot exceed $10 million - Business Activity Test: Company must maintain active business operations throughout credit period - Holding Period: Investors must typically hold shares for minimum specified duration (2-3 years, depending on jurisdiction) - Compliance Requirements: Full documentation of investment structure and business use of capital - Restrictions: Funds cannot be used for debt repayment, dividends, or return of capital to existing shareholders - Provincial Variation: Program details vary by province; eligibility and credit rates differ - **Annual