Guidelines Small Business Development Program

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1 Guidelines Small Business Development Program 1. Program Objective The Small Business Development Program supports Nova Scotia businesses looking to increase their export capacity. The program provides financial incentives on projects that assist a business to grow current exports or participate in a global supply chain by providing access to: Research expertise; Expertise to improve productivity and competitiveness; Expertise to improve capacity; and Expertise to remove barriers to exporting. The outcomes of the program focus on growth through increased export activity and focus on highgrowth sectors* and businesses that have a positive impact to the economy of Nova Scotia. *Refer to the Nova Scotia Business Inc Business Plan 2. Eligible Applicants The Small Business Development Program is open to all Nova Scotia registered businesses (registered on the Registry of Joint Stock Companies) in good standing except: Franchises Games of chance operations and bingo halls Personal service providers Real estate developers, agents or brokers Licenced liquor establishments whose primary business is alcohol sales (excepting production breweries, brew pubs, wineries, and distilleries) Distributors, agents, or traders, except where value-added products or services are part of the deliverables Associations or co-operatives Professional service providers, except where the project represents a unique and/or strategic opportunity with potential economic benefit and job creation Creative industries companies including Music, Written and Published Work, Performing Arts (touring), Visual and Applied Arts (Contemporary Art, Production Craft, Photography, and Fashion Design). 1 Publicly funded organizations Non-revenue-generating not-for-profit organizations 1 If your business is in the Creative Industries, please refer to the Creative Industries Fund Guidelines SBDP Nova Scotia Business Inc. Page 1 of 6

2 To be eligible for the program the business must: Be engaged or plan to engage in commercial activities outside of Nova Scotia; Have the majority of its workforce reside in Nova Scotia; Demonstrate a clear link between the requested project funding and the plan and articulate how the funding for each project will increase export sales outside of Nova Scotia; Have a fully-developed exportable product, service, technology, or intellectual property that can be sold into a target market outside of Nova Scotia. Have an export plan outlining the following: The products or services you plan to market; Your company s target market(s) and distribution channels with supporting research; Challenges in the target market(s) (competition, cultural differences, import controls, intellectual property status, certifications, etc.) and how these will be overcome; Personnel and company resources dedicated to exporting; and Your company s projected growth plan including revenue and employees. If the company is pre-revenue, the company must clearly demonstrate the development of both a business plan and export plan and the application may be subject to additional review or additional information required 3. Projects Assisted The Small Business Development Program supports the acquisition of a private sector consultant to provide professional expertise. The program contributes up to 50% of eligible project costs to a maximum incentive of $15,000 CAD. A business with revenue growth of at least 15% in its previous fiscal year will be eligible for up to 50% of eligible costs to a maximum of $25,000 CAD. The business must validate that minimum revenue growth by providing NSBI with any one of the following: i. review engagement financial statements for its previous fiscal year; ii. copies of the GST 34 return showing revenue on line 101 for its previous fiscal year and the fiscal year prior; or iii. copies of the General Index of Financial Information form showing revenue on line 8299 for its previous fiscal year and fiscal year prior. Eligible costs include: Business growth, strategic and marketing plans Market research, feasibility or business case analysis for proposed or existing business activity Product research, development, and design Development plan for e-commerce platform for markets outside of Nova Scotia Business matchmaking or lead generation in new markets Business valuations for succession planning Productivity, efficiency, lean, capacity improvements Intellectual Property and/or Certification research or development (does not cover legal fees) Guidelines SBDP Nova Scotia Business Inc. Page 2 of 6

3 4. Ineligible Project Costs Project costs that do not qualify for funding include but are not limited to: PST/GST/HST Capital assets or infrastructure Purchase of software Annual website and domain name registration costs Real property expenses (e.g. rent, mortgage, land survey, deed transfer, site selection, property valuation except in cases of business valuation) Business operating costs Printing of advertising copy or artwork Placement of marketing media In-kind contributions Intellectual property searches or registration Legal fees Certification fees Company listing fees Employee and/or owner wages, salaries, commissions or per diem expenses Travel (except where included as part of the consultant s fee) Food, alcohol or gifts 5. Program Criteria Businesses must demonstrate how the project will help increase a business export capacity, become a first-time exporter, help a business overcome barriers to exporting, or grow a business current exports. The goal of the project must result in the following outcomes: Increase in export sales or revenue Improved knowledge of export markets Increased productivity and competitiveness Increased capacity to provide products and/or services to markets outside Nova Scotia Positive economic impact for Nova Scotia Funding decisions will be based upon the application demonstrating that the above criteria would be met. Project applications are subject to a competitive process and not all applications that meet these criteria may be approved. 6. Application Process Prior to submitting an application, it is recommended that applicants contact their local Regional Business Development Advisor (see Section 11c for contact information) at Nova Scotia Business Inc. Applicants must submit a completed Application Form to the Regional Business Development Advisor at Nova Scotia Business Inc. in electronic format. Guidelines SBDP Nova Scotia Business Inc. Page 3 of 6

4 In order for an application to be considered complete, all of the following must be submitted prior to the deadline: Completed Application Form, signed (please note, all questions must be answered) Statement of work from the consultant, including detailed project costs and a proposed timeline (please see Section 8 for more information on consultants and statements of work) Proof of consultant s expertise (i.e. company website, bio, CV) If the applicant has revenue growth of at least 15% in the previous fiscal year and is applying for up to 50% of eligible costs to a maximum of $25,000 CAD, minimum review engagement financial statements are also required. Nova Scotia Business Inc. may request financial statements from the applicant prior to a project funding decision. Once approved, the Small Business Development Program Agreement must be signed within 30 days of receipt of the Agreement to be valid. Project commencement must be after the submission of a completed application. Only project costs incurred after the application date are eligible to be claimed. Any expenses incurred prior to approval are at the business own risk. 7. Application Intake Applications for the Small Business Development Program are accepted anytime between March 29, 2018 and January 15, Applications must be received no later than 5:00pm (Atlantic Standard Time) on January 15, All projects must be completed and claims submitted before March 31, Applications must be submitted before project commencement to be eligible for funding. Any expenses incurred prior to application approval are at the company s own risk. 8. Consultants and Statements of Work Nova Scotia Business Inc. encourages applicants to engage other Nova Scotia businesses for their project. Details outlining reasons for selection of a consultant outside of the Province must be provided on the application. Choosing a consultant from outside Nova Scotia does not preclude an application from being approved. The chosen consultant must be at arms length from the applicant. For a project to be assessed for approval, sufficient information must be provided with the application to validate the consultant s expertise. The statement of work must be prepared by the consultant and must meet the following criteria: - Detailed description of the work to be performed including timelines and hourly rates or fee structures - For Canadian consultants: if no GST/HST/PST is included in the cost, it must be noted that costs are either exempt, subject to, or inclusive of GST/HST/PST Statements of work are subject to review by NSBI and may be rejected if insufficient project details are provided. Guidelines SBDP Nova Scotia Business Inc. Page 4 of 6

5 9. Terms of Incentive Funding is provided in Canadian dollars. The total amount of all Canadian government funding (federal, provincial/territorial, or municipal) is set at 50% of the total eligible project cost in any single provincial government fiscal year (April 1 to March 31). The business must pay 50% of the total eligible project cost. Applicants are required to pay all invoices prior to receiving the incentive. The incentive is only payable against eligible project costs as outlined in the Small Business Development Program Agreement ( Agreement ) which will be sent to successful applicants. All approved projects must be completed in accordance with the timelines and other terms as outlined in the Agreement. An Agreement may be revoked on the basis of information discovered after the issuance of the Agreement. Activities must be of a one-time, non-recurring nature. The project completion date must be no later than March 31. Projects are to be completed and disbursed within the fiscal year (April 1 to March 31) for which they are approved. Projects cannot be extended past fiscal year end. Project funds are not intended to replace funding that can be obtained from other government departments or agencies. 10. Incentive Compliance and Payment Deliverables for project completion must be submitted to the business respective regional Nova Scotia Business Inc. office no later than 45 days from project completion. For projects completed in March, deliverables must be submitted no later than March 31. Failure to adhere to these timelines could result in project claim being denied. Deliverables will include the following: Consultant s final report detailing work completed and outcomes aligned to the export plan; Proof of project completion (i.e. marketing material, screen shots, business plan); Statement from the business regarding project impacts on future development; Related project invoices from the consultant indicating they have been paid; Proof of payment in the form of the front and back of cleared cheques, or other means satisfactory to NSBI. 11. Other Pertinent information a) Freedom of Information and Protection of Privacy Act Information collected in connection with this program is subject to, and will be created in accordance with, the Nova Scotia Freedom of Information and Protection of Privacy Act. b) Public Announcements and Disclosure of Information Approved applicants must consent to: Guidelines SBDP Nova Scotia Business Inc. Page 5 of 6

6 Participate in any public announcement or public ceremony relating to the awarding of the Small Business Development Program funding to the business and related accomplishments, at a mutually agreeable time; and The release of project information (company name, sector, region), and total Small Business Development Program funding amount being approved) to the media and general public. c) Contact Information For more information, visit or contact the Regional Business Development Advisor in your region. Guidelines SBDP Nova Scotia Business Inc. Page 6 of 6

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