The Community Small Business Investment Fund (CSBIF) program provides Ontario small businesses with greater access to capital, by encouraging the formation of community sponsored venture capital pools, and by providing eligible investors with incentives for purchasing Class A shares of registered CSBIFs.
A CSBIF is a Canadian corporation that is registered under Part III.1 of the Community Small Business Investment Funds Act, 1992. An application for registration must have been submitted by an eligible community sponsor. The deadline for applications was December 31, 2003. No new CSBIFs can be created after this date.
CSBIFs created before the deadline continue to operate and provide eligible investment and venture capital services. For a list of the currently registered CSBIFs, please refer to the Community Small Business Investment Funds List.
The Community Small Business Investment Funds Act, 1992 contains specific requirements with respect to:
- registration requirements
- community sponsorship
- articles of the corporation
- assets that can be held by the CSBIF
- investment incentives for investors
- required investment levels made by the CSBIF
- types of investments
- required returns/forms
- dividends and return of capital
What are the benefits of a CSBIF?
The benefits of a CSBIF include:
- incentives for investors
- strengthening Ontario small businesses with new sources of capital
- increasing economic activity and promoting growth creating jobs
- providing potential returns on CSBIF investments
Is my business eligible?
Specific eligibility criteria must be met by the:
- corporations registered as a CSBIF
- corporation's community sponsors and shareholders
- investee businesses
- investments the corporation makes in investee businesses
Please refer to Community Small Business Investment Funds Act, 1992 for criteria details.