Enterprise Saskatchewan

A pool fund LSVCC is a broad-based investment corporation (such as Golden Opportunities Fund Inc., SaskWorks Venture Fund Inc. or GrowthWorks Funds Ltd.) permitted to issue shares to all Saskatchewan residents. The goal of the LSVCC pool fund is to encourage Saskatchewan residents to make equity investments in small and medium-sized Saskatchewan-based businesses.

Once money has been raised, the fund managers are required to invest this capital into eligible Saskatchewan businesses that create and maintain jobs and encourage long-term investment in local communities.

The program strengthens the provincial economy by providing venture capital to Saskatchewan companies and builds a lasting and productive relationship between labour, business and government for the benefit of Saskatchewan.

Individuals who are residents of Saskatchewan on the last day of the taxation year can invest in a pool fund for that taxation year.

Investors receive a combined 35% tax credit (a 20% provincial tax credit and a 15% federal tax credit) on the first $5,000 invested per year. Tax credits are available only to the first purchaser of shares. If shares of the LSVCC are purchased in the first 60 days of the calendar year, the tax credit may be claimed for that tax year or the previous tax year, or a combination of those two years. Unused tax credits cannot be refunded. Investors are required to hold the investment for a minimum of eight years, although investments may be cashed in early if tax credits are repaid. By investing in an LSVCC, people have the opportunity to profit through dividends and/or capital appreciation, which contributes to their long-term savings. Investments may be RRSP eligible.

For more information on registered pool funds, please visit the websites listed in the Related Links section below.

Contact a licensed securities dealer/broker.

Businesses receiving pool fund LSVCC investments must be corporations or co-operatives, have 500 or fewer employees, and pay at least 25% of salaries and wages to Saskatchewan residents.

If you are a business owner interested in accessing this venture capital, please contact the funds listed in the Related Links section below.