Equity Investors Incentive

📋 Eligible Entities - Canadian-controlled private corporations (CCPCs) - Small and medium-sized enterprises (SMEs) operating in Canada - Companies with active operations and revenue-generating activities - Businesses seeking equity financing from private investors - Excludes: Public companies, non-profits, sole proprietors, partnerships (unless structured as corporations) ### 💰 Funding Details - Rebate Structure: 20% direct rebate on equity investment purchase price - Maximum Rebate: $200,000 per company per fiscal year - Investor Calculation: If an investor purchases $1,000,000 in equity, the rebate equals $200,000 (capped at maximum) - Repayability: Non-repayable grant/rebate - Matching Requirements: No matching funds required from the business - Effective Benefit: Reduces investor's net cost of equity purchase by 20% ### 🛠️ Approved Expenses This is a rebate on equity investment, not direct operational spending. Funds support: - Private equity capital injections into the company - Business growth and expansion initiatives funded through new equity - Working capital enhancement through investor financing - Asset acquisition and infrastructure development - Technology and equipment purchases funded by equity proceeds - Note: The rebate incentivizes investor participation; investor's capital deployment determines actual use ### ⚠️ Conditions & Milestones - Equity Investment Requirement: Private investor must purchase new equity (shares) in the company - Rebate Timing: Rebate is calculated and issued based on confirmed equity investment completion - Investment Documentation: Complete share purchase agreements and capitalization records required - Investor Eligibility: Investment must be from arm's-length private investors - Annual Cap: Maximum $200,000 rebate per fiscal year per company - Compliance: Company must maintain Canadian operations and control throughout funding period - Reporting: Track and document all equity transactions for audit purposes - No Double-Dipping: Rebate cannot be applied to investments already receiving other government incentives