What You Need to Know About Manitoba’s Small Business Venture Capital Tax Credit (SBVCTC)

Aug 1

If you’re an investor or entrepreneur in Manitoba, the Small Business Venture Capital Tax Credit (SBVCTC) is one of the most powerful tools available to support startup growth and reduce investment risk. This program helps channel private capital into local early-stage businesses, giving startups the fuel they need to scale while providing investors with a significant tax benefit.

The skyline of Winnipeg representing Manitoba’s growing startup ecosystem — Manitoba's growing investment ecosystem

Here’s everything you need to know about how the SBVCTC works, who is eligible, and why it matters to Manitoba’s innovation economy.

What Is the SBVCTC?

The Small Business Venture Capital Tax Credit (SBVCTC) is a Manitoba government program that offers a 45 percent non-refundable provincial tax credit to eligible investors who invest in approved Manitoba-based small businesses. It is considered one of the most generous tax credit programs of its kind in Canada.

The purpose of the SBVCTC is to:

Encourage private investment in Manitoba startups
Support job creation and economic diversification
Reduce the financial risk for early-stage investors
Strengthen Manitoba’s innovation and entrepreneurial ecosystem

Who Can Invest Through the SBVCTC?

Eligible investors include:

Manitoba residents
Corporations with a permanent establishment in Manitoba

To qualify for the 45 percent tax credit:

The minimum investment is $10,000
The maximum eligible investment is $500,000 per year per investor

Investments must be made in approved companies that meet the program’s eligibility requirements.

Which Companies Qualify for the SBVCTC?

To be eligible for investment under the SBVCTC, a company must:

Be a Manitoba-based business
Have less than $10 million in total assets and gross revenue
Be involved in an eligible sector (such as tech, advanced manufacturing, clean tech, or other innovation-driven industries)
Be pre-approved under the SBVCTC program before receiving investment

Companies must apply for pre-approval through the Manitoba government and meet specific reporting and compliance requirements.

Why the SBVCTC Matters for Startups

Raising early-stage capital is one of the biggest barriers for startups. The SBVCTC makes it easier for founders to attract local investors by offering them a compelling reason to get involved.

At North Forge, we help founders prepare for investment, including:

Understanding investor expectations
Structuring deals that align with the SBVCTC
Connecting with legal and financial professionals
Navigating the application process

The SBVCTC helps close funding gaps and supports local businesses as they scale from idea to impact.

Why the SBVCTC Matters for Investors

The SBVCTC reduces the risk of investing in early-stage startups by offering a 45 percent tax credit. This means that if an investor puts in $100,000, they can claim $45,000 as a credit on their Manitoba income taxes.

Other benefits include:

Supporting homegrown innovation
Diversifying investment portfolios
Participating in meaningful economic development
Backing companies with potential for long-term growth and returns

Investors should consult with a tax advisor or legal professional before proceeding.

How to Get Started with the SBVCTC

Entrepreneurs:

If you’re building a startup in Manitoba and are preparing to raise capital, you may be eligible for the SBVCTC. The first step is to apply for pre-approval through the province and work with experienced advisors to ensure compliance.

Investors:

If you’re considering investing in an approved Manitoba company under the SBVCTC, ensure that your investment meets the minimum threshold and that the company has been pre-approved for the tax credit.

You can learn more about the program by visiting the Government of Manitoba’s SBVCTC page.

North Forge Can Help

North Forge is Manitoba’s premier innovation hub and startup incubator. Through our cost-free Founders Program, we help early-stage companies scale faster with mentorship, investor readiness support, and access to expert guidance. While we do not provide legal or tax advice, we can help startups navigate the investment landscape and make connections that matter.