New Small Business Seed Capital Equity Program announced

Development and Rural Renewal Minister Beaton Tulk says the new $2 million program to provide seed equity financing to small business outlined in today's Budget Speech is a direct response by government to what it heard during the consultation process on the renewal of the province's Jobs and Growth strategy.

"Consistently, we heard that Newfoundland and Labrador businesses, particularly in rural areas, lack the equity base on which to build," said Mr. Tulk. "We listened, and with this innovative new program and other related initiatives, we are acting on the strong direction the public has given us to provide more responsive and accessible support programs for small business."

The Small Business Seed Capital Equity Program will make direct equity investments in qualifying small and medium-sized enterprises, on a matching basis, of up to $50,000. This will need to be matched by an equivalent amount of new private sector funding, which can then be used to lever additional business financing from other sources.

This new program is one of several initiatives that give greater priority to small business development. "Together they improve the ability of the small business community to access much needed equity financing and help build a more competitive and stimulative enviroment to support business development in the province," Mr. Tulk said. Other initiatives announced today include a new $500,000 Business and Market Development Program; a venture capital tax credit program; the raising of the payroll tax threshold; and maintaining the manufacturing and processing tax at its existing competitive level.

Small businesses seeking further information on the new program can contact a local office of the Department of Development and Rural Renewal.

Media contact: Josephine Cheeseman, Communications, (709) 729-4570.

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