As we highlighted in a recent Insight, Manitoba’s Economic Development Strategy, released in September 2025, contained several plans to modernize Manitoba’s Small Business Venture Capital Tax Credit Program. These plans included:
- Increasing the annual budget for the Program by 36% to $30 million
- Lowering the minimum investment from eligible investors from $10,000 to $5,000
- Making simple agreements for future equity (SAFEs) eligible under the Program, which will allow investors and eligible small businesses (ESBs) to use SAFEs without losing out on the tax credit (learn more about SAFEs and how they work here)
- Allowing investments to be made through limited partnerships (LPs), which would allow multiple investors to invest through a single entity and each still personally benefit from the tax credit
We are now pleased to report that Manitoba is moving forward with each of these plans, as announced by Innovation and New Technology Minister Mike Moroz on February 26, 2026.
The changes to the Program are expected to be implemented in April 2026, applicable to eligible investments made on or after the in-force date of the updated Small Business Venture Capital (SBVC) Tax Credit Regulation.
Additional details and guidance for the use of SAFEs and LPs are set to be released closer to the implementation date, with the full terms and conditions of use being confirmed upon the updated Regulation coming into force.
These changes will provide ESBs with more flexibility in structuring offerings under the Program while also modernizing the Program to stay competitive with similar programs in other Canadian jurisdictions, promoting local investment in local companies in Manitoba.
We continue to monitor for the specifics of the updated Regulation and will provide an update to this insight once in force. We look forward to working with ESBs and eligible investors to navigate this updated Regulation and expanded Program.
For any questions regarding these updates, or the Program in general, please contact Winnipeg-based lawyers Todd Thomson, Pamela Hilderman or Braeden Ness.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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