As a small business owner, finding the funding you need to buy more equipment, hire new workers, or expand your facilities is not always easy. Luckily, there are lots of ways to get small business funding in BC. From tax credits to grants and loans, you could access thousands of dollars – if not more. Here are just a few examples of what’s out there and where to find more information:
Tax Credits
Interactive Digital Media Tax Credit (IDMTC)
If you’re involved in the booming digital media industry in BC, there’s a tax credit designed specifically to help companies like yours. The Interactive Digital Media Tax Credit (IDMTC) is available to registered corporations that develop interactive digital media products, like video games, simulators, and educational software.
Amount: The tax credit is calculated as 17.5 percent of eligible salary and wages incurred in the tax year and is available for expenses incurred before September 1, 2028.
Scientific Research and Experimental Development (SR&ED) Tax Incentives
The Scientific Research and Experimental Development (SR&ED) tax credit program is designed to empower small businesses to conduct research and development in Canada. This program gives claimants tax deductions or tax credits for their expenditures related to qualifying research and development. This includes salaries and wages, materials, overhead costs, and so on.
The two types of tax incentives available include:
- Income tax deduction – You can obtain a deduction for expenditures in the year they’re incurred, even if they’re capital expenses.
- Investment Tax Credit (ITC) – ITCs can reduce your income taxes, lowering the cost of your qualifying research and development expenses. They can be obtained as cash refunds, meaning you can get money back, even if the amount of credits you have exceeds how much you owe in income tax.
For more information, check out our article, How the SR&ED Tax Credit Can Benefit Small Businesses.
Apprenticeship Job Creation Tax Credit (AJCTC)
If your business invests in apprentices, you may qualify for the Apprenticeship Job Creation Tax Credit (AJCTC).
Amount: This is an investment tax credit (ITC) that’s equal to 10 percent of salaries and wages payable to eligible apprentices. The maximum amount you can claim is $2,000 per year per eligible apprentice.
Grants
Granted is a great resource that can help you identify industry-specific grants and apply for them. These are just a few grants available now, but you can find more opportunities at WeBC’s article, Grants for BC Businesses:
BC Employer Training Grant
The BC Employer Training Grant provides funding for businesses to help support skills training for their employees, including prospective new hires.
Amount: Up to $300,000.
Enabling Accessibility Fund (EAF)
Access financing for projects to make communities and workplaces more accessible for people with disabilities through the Enabling Accessibility Fund. Funding would cover the cost of new construction, renovation, and/or retrofit projects such as building ramps, accessible washrooms, accessible parking, and more.
Amount: Receive funding from $500,000 to $3 million for new projects.
Aboriginal Entrepreneurship Program (AEP)
If you’re an Indigenous entrepreneur or business owner in Canada, the Aboriginal Entrepreneurship Program provides access to funding and business opportunities to help you succeed.
Amount: Available funding varies, depending on a business’ scope, demonstrated need, and estimated budget. Individual entrepreneurs could receive up to $99,999, and eligible community businesses may receive up to $250,000.
Loans
Here are a few loan opportunities for small businesses in BC:
WeBC: Business Loans for Women
WeBC offers Small Business Loans for Women to help them strengthen and expand their businesses.
Amount: Loans up to $150,000, as well as additional supports like advisory services and mentoring.
Futurpreneur: Financing for Young Entrepreneurs
If you’re 18-39 years old, Futurpreneur’s Core Startup Program offers financing and two years of mentorship to get your business up and running.
Amount: Loans up to $60,000, plus additional resources.
BDC: Loans for Immigrant Entrepreneurs
If you’ve immigrated to Canada within the past three years, BDC’s Newcomer Entrepreneur loans could be a great opportunity to get your start-up off the ground.
Amount: Loans between $25,000 and $50,000 as well as extra resources.
More Resources
The Government of Canada’s Business Benefits Finder is a helpful tool for discovering programs, services, and funding opportunities to help your business grow. Also, check out our article, How to Finance Your Start-up Business, and our Start-Up Financing and Grants landing page for more guidance.
These examples are only a brief overview of the many different opportunities for small business funding in BC. With such a variety of programs encouraging small businesses to achieve their goals, it’s easy to see why BC is a great place to start or own a new business.
Small Business BC is Here to Help
SBBC is a non-profit resource centre for BC-based small businesses. Whatever your idea of success is, we’re here to provide holistic support and resources at every step of the journey. Check out our range of business webinars, on-demand E-Learning Education, our Talk to an Expert Advisories, or browse our business articles.