Economic Diversification and Growth Enterprises Program (EDGE)

Amount:

No Fixed Amount

Type of Program:

Rebate

Description:

Economic Diversification and Growth Enterprises Program (EDGE) is an incentive-based program that is available to local companies who want to expand their businesses, local entrepreneurs who are interested in starting a business in Newfoundland & Labrador, as well as national and international companies who wish to establish a new enterprise in the province.

Comments on Funding:

Funding will take the form of:

1
a 100% rebate on provincial corporate income tax and the provincial health and post-secondary education (payroll) tax (the tax “holiday” for eligible companies is 10 years within the Northeast Avalon area and 15 years outside the Northeast Avalon area, as defined in the Economic Diversification & Growth Enterprises ActOpens in new window);
2
a 50% rebate on federal corporate income tax for the periods referenced above;
3
a further five-year phase-out period of partial rebates on the provincial and federal taxes referenced above, declining by 20 percent in each year of the phase-out period;
4
a 100% rebate on municipal property and/or municipal business taxes for 10 or 15 years, followed by a five-year phase-out of such rebates, where individual municipalities elect to participate in the EDGE program; and
5
access to unserviced Crown land for $1.00 where such land is required to implement the company’s business plan.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

Applicants must meet the following requirements:

be new or existing businesses;
have the potential to create and maintain at least 10 new permanent jobs in the province;
be prepared to make a minimum capital investment of at least $300,000, or generate incremental sales of at least $500,000 annually;
they would not establish or expand in the province in the absence of the edge incentives, in preference to another location or at the time when it is proposed to do so;
the investment will have a substantial net economic benefit to the province;
it would not result in the company having a direct competitive advantage over other businesses already established in the province, if provided edge status.

Application Steps:

submit a signed, completed application with supporting documentation to the office of Industry, Energy and Technology (IET) in their area;

submit any additional information, if requested.

Documentation Needed:

Applicants must submit:

1
a business plan and project summary & benefits;
2
a business description;
3
a description of the project;
4
a 12-month travel plan, if funding is requested for travel related to market development;
5
a project budget;
6
a brief history of the shareholders;
7
financial statements for the current and previous two to five years of operation including notes to the financial statements and the most recent interim statements. if a proprietorship, include recent and previous two to five years personal income tax returns including CRA T2125 form and Notice of Assessment, if existing business;
8
a cash flow statement, if existing business;
9
pro forma statements for the next two to five years including balance sheet and income statement with detailed assumptions supporting revenue forecasts, if existing business;
10
income statement and opening balance sheet, if new business;
11
a cash flow statement, if new business;
12
pro forma statements for the next two years including balance sheet and income statement with detailed assumptions supporting revenue forecasts, if new business;
13
a copy of articles of incorporation;
14
a personal net worth statement for all shareholders and key management personnel (loans/equity investments only);
15
include any supplementary information that maybe relevant to your operation.