Small Business Tax Credit
Highlights
This program is designed for businesses like yours, offering significant financial support to help you grow and thrive. By applying, you can access up to $1,000,000 in financing, with an additional $150,000 available for software or daily operating costs. This funding can be used for a variety of purposes, including operating expenses, restorations, new equipment, and software.
Key Benefits:
- Government-backed financing: This ensures more favorable terms compared to traditional loans.
- Flexible repayment options: You can choose how to repay the loan, with up to 15 years to do so.
Approval for this program can provide the financial stability and resources needed to expand your business, invest in new technologies, and improve overall operations. The qualification process is straightforward, making it easier for you to access these benefits quickly.
Financing Details
Type of Financing: Tax Credit
Eligible Expenses:
- Costs related to the development of interactive digital media products.
- Salaries and wages of employees directly involved in the development.
- Fees paid to subcontractors for eligible work.
- Costs of purchasing or licensing software used in the development process.
Use of Funds:
- Funds can be used to cover expenses directly related to the creation and development of interactive digital media products.
- Funds cannot be used for general administrative costs, marketing, or any expenses not directly tied to the development process.
Fees:
- There are no application fees associated with this tax credit program.
- No additional fees are required to access the tax credit.
Qualifications
- Must be a business operating in Newfoundland and Labrador.
- Must have a Canada Revenue Agency Business Number.
- Must be engaged in activities related to film and video production, manufacturing and processing, scientific research and experimental development, or interactive digital media.
Must be compliant with all relevant tax regulations in Newfoundland and Labrador.
Disqualifications:
- Businesses not operating within Newfoundland and Labrador.
- Businesses without a Canada Revenue Agency Business Number.
- Businesses not engaged in the specified activities (film and video production, manufacturing and processing, scientific research and experimental development, or interactive digital media).
- Businesses not compliant with tax regulations in Newfoundland and Labrador.
Description
This program offers your business up to $1,000,000 in funding. You can use this money to buy equipment, improve your workspace, or cover operational costs.
Here’s how you can use the funds:
Up to $500,000 for equipment or workspace improvements, such as:
- Commercial kitchen appliances
- Manufacturing machinery
- Computers and IT infrastructure
- Renovating a retail space
Up to $150,000 for costs like software or other operational needs to keep your business running smoothly.
The government guarantees 85% of the loan, providing a significant safety net for you.
Flexible repayment options are available. You can choose between a variable interest rate, a fixed rate, or a combination of both. You also have up to 15 years to repay the loan, regardless of how you use the funds. This flexibility ensures you can manage your finances in a way that best suits your business needs.
Program Steps
Gather Necessary Documentation:
- Business registration documents
- Financial statements (balance sheet, income statement)
- Business plan
- Tax returns for the past two years
- Proof of identity and address for business owners
- Any other documents specified by the program guidelines
Complete the Application Form:
- Visit the official program website or contact the relevant department to obtain the application form.
- Fill out the form with accurate and complete information about your business.
Prepare a Detailed Proposal:
- Outline how the program funds will be used.
- Include a budget and timeline for the proposed activities or investments.
- Highlight the expected benefits to your business.
Submit the Application:
- Attach all required documentation and the detailed proposal to your completed application form.
- Submit the application through the specified channel (online portal, mail, or in-person).
Follow Up:
- After submission, confirm receipt of your application.
- Monitor your email and phone for any communication from the program administrators.
- Be prepared to provide additional information or clarification if requested.
Review and Approval:
- Wait for the program administrators to review your application.
- They may contact you for an interview or additional documentation.
- Once approved, you will receive an official notification.
Receive Funds and Implement:
- Upon approval, follow the instructions to receive the funds.
- Implement your proposed activities or investments as outlined in your proposal.
- Keep detailed records of how the funds are used.
Reporting and Compliance:
- Adhere to any reporting requirements specified by the program.
- Submit progress reports and financial statements as required.
- Ensure compliance with all program guidelines and conditions.