DIRECT FINANCIAL ASSISTANCE

Investment Attraction Fund:  Fund that aims to attract large-scale businesses and foreign direct investment. It provides customized financial assistance to inward investors in support of establishing a business in the province or expanding a business as a result of FDI. The fund provides investment in the form of forgivable loans, loans and/or equity towards strategic investments in infrastructure support costs, human resource costs or other costs, as determined by the Department of Industry, Energy and Technology.

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‍Canada - Newfoundland and Labrador Job Grant: Job Grant that assists employers in training for their existing and future employees. Eligible employers may receive up to $10,000 for each existing employee and $15,000 for each unemployed participant to assist with training costs. Employers that receive funding under the Job Grant must contribute a minimum of one-third of the eligible training costs for existing employees, with the exception of an unemployed participant. Employers must have a job for all participants at the end of training.

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‍JobsNL Wage Subsidy: Workforce assistance program that is designed to connect local employers and employees by providing funding to employers to create sustainable long-term employment or seasonal/short term employment. The subsidy is intended to offset salary costs to create new positions.

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‍Business Development Support Program: This program assists small and midsized enterprises (SME)s through targeted assistance towards businesses in strategic sectors that normally focus on export markets and/or improve import substitution. Funding is available for productivity improvements, knowledge development, market development and/or professional technical advice. Funding is in the form of a non-repayable contribution(s) to a maximum amount of $100,000 per government fiscal year. The contribution level will be up to 50% of eligible costs, with the business identifying their access to the remaining funding to complete the project(s).

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‍Business Investment Program: This program provides term loans and equity investments to local small and medium-sized enterprises (SMEs) in strategic growth sectors as identified by Industry, Energy and Technology. The fund is also available to businesses which have export potential and require assistance to enter or expand in external markets. Funds are provided to complement funding from conventional sources, where a need has been demonstrated, and are also intended to increase the capital base of businesses allowing them to leverage new private-sector investments. The Business Investment Program is in the form of repayable term loans at the department’s base rate of 2.45%. Equity funding in the form of redeemable preferred shares to a maximum of $500,000 per project; maximum aggregate of $1 million is available.

TAX CREDITS

Economic Diversification and Growth Enterprises Program (EDGE): Business creating at least 10 new jobs and making a minimum investment of $300,000 are eligible for a variety of tax rebates and incentives in the province based on project need including rebates of the provincial corporate income tax, payroll taxes, federal income taxes, and municipal property taxes.

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Scientific Research and Experimental Development Tax Credit:  Individuals, corporations and partners of partnerships who have conducted scientific research or experimental development activities in the province during the taxation year might be able to claim the provincial Scientific Research and Experimental Development Tax Credit. This refundable tax credit allows you to claim 15% of your eligible research and development expenditures.

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‍Venture Capital Tax Credit (VCTC): This program is designed to encourage investment in businesses which can provide the highest returns to the provincial economy, and to encourage growth in industries such as information technology, and clean and ocean technologies, among others. The VCTC allows investors to qualify for a non-refundable tax credit equal to 30% of the amount invested in a Qualifying Venture Capital Fund. The maximum tax credit available to a qualifying investor is $75,000. As a non-refundable tax credit, the VCTC can be carried back 3 years and forward 7 years.  To qualify for the credit, investors purchase shares in the fund, which then uses capital raised from investors to make equity investments in qualifying businesses.  

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Last Updated:  July 2023