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Part II .

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Business Development Incentives Regulations

made under

Section 36 of the

Invest Nova Scotia Act

S.N.S. 2022, c. 37

O.I.C. 2015-298 (September 8, 2015, effective September 9, 2015), N.S. Reg. 321/2015

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Citation

Definitions

Affiliated bodies corporate

Annual business plan

Ineligibility for business development incentives

Business activities not eligible for business development incentives from Nova Scotia

Fund

Criteria required for business development incentives from Nova Scotia Fund

Condition for business development incentives from strategic investment funds

Consents required for business development incentives from Nova Scotia Fund

Consents required for business development incentives from strategic investment funds

Consent required for purchase of equity securities

Corporation as an independent production fund

Power of Corporation on default

Applicants deemed consent to being contacted for review of Corporation

Citation

1 These regulations may be cited as the Business Development Incentives Regulations .

Definitions

2 In these regulations,

“Act” means the Nova Scotia Business Incorporated Act ;

“affiliate” means an affiliate as determined under

Section 2;

“annual portfolio lending cap” means the maximum amount of funds available to the

Corporation in each fiscal year for providing loans and loan guarantees to applicants;

“annual sector lending limits” means the maximum amount of funds available in

each fiscal year to each eligible sector of the economy of the Province as determined

by the Corporation under

Section 4;

“applicant” means a person applying to the Corporation for a business development

incentive in accordance with the Act and these regulations;

“individual loan limits” means the maximum dollar value or the maximum

percentage of the total loan portfolio that is appropriate for any individual loan;

“loan guarantee limits” means the maximum dollar value or the maximum

percentage of the total loan portfolio that is appropriate for any loan guarantee;

“payroll rebate program” means a program funded through strategic investment

funds by which a portion of the payroll paid to employees by a business is returned

to the business based on a percentage of the total payroll of the business for the

employees;

“strategic investment funds” means funds other than the Nova Scotia Fund

maintained by the Corporation to fund certain forms of business development

incentives, including the payroll rebate program.

Affiliated bodies corporate

(1) For the purposes of these regulations, a body corporate is affiliated with another

body corporate if any of the following apply:

(

a) one of them is the subsidiary of the other;

(

b) both are subsidiaries of the same body corporate;

(

c) each of them is controlled by the same person.

(2) Bodies corporate that are affiliated with the same body corporate at the same time

are deemed to be affiliated with each other.

(3) For the purposes of this Section,

(

a) a body corporate is controlled by a person or by 2 or more bodies corporate if

all of the following apply:

(

i) securities of the body corporate to which are attached more than 50% of

the votes that may be cast to elect directors of the body corporate are

held, other than by way of security only, by or for the benefit of that

person or by or for the benefit of those bodies corporate,

(ii) the votes attached to the securities referred to in subclause (

i) are

sufficient, if exercised, to elect a majority of the directors of the body

corporate;

(

b) a body corporate is the holding body corporate of another if that other body

corporate is its subsidiary; and

(

c) a body corporate is a subsidiary of another body corporate if it is controlled by

any of the following:

(

i) that other body corporate,

(ii) that other body corporate and 1 or more bodies corporate each of which

is controlled by that other body corporate,

(iii) 2 or more bodies corporate, each of which is controlled by that other

body corporate.

(4) A body corporate is deemed to be a subsidiary of another body corporate if it is a

subsidiary of that other body corporate’s subsidiary.

Annual business plan

4 The annual business plan submitted to the Minister under

Section 31 of the Act must

include all of the following:

(

a) all of the following as determined by the Corporation in respect of the Nova

Scotia Fund for the following fiscal year:

(

i) the annual portfolio lending cap,

(ii) the annual sector lending limits,

(iii) the individual loan limits,

(iv) the loan guarantee limits,

(

v) the interest rate policy;

(

b) the maximum percentage of the total amount of the Nova Scotia Fund

available for business development incentives by way of working capital loans,

as determined in consultation with the Minister of Finance and Treasury

Board;

(

c) policies and guidelines governing the payroll rebate program and any other

business development incentive funded through the strategic investment funds;

(

d) any relevant information the Minister requires to assess the business plan in

accordance with the Act, these regulations and the outcomes agreement.

Ineligibility for business development incentives

5 The following business activities are not eligible for business development incentives:

(

a) a commercial business or other activity that is carried out by a private,

exclusive or charitable club or organization;

(

b) a business activity that is eligible for financial assistance or an economic

development incentive from any of the following:

(

i) the Nova Scotia Fisheries and Aquaculture Loan Board,

(ii) the Nova Scotia Farm Loan Board,

(iii) a Provincial lending authority determined by the Corporation.

Business activities not eligible for business development incentives from Nova Scotia Fund

6 A business activity involving any of the following is not eligible for business development

incentives from the Nova Scotia Fund:

(

a) supplying residential or rental accommodations;

(

b) supplying business premises to non-related persons;

(

c) lending money or other activities of a finance company, loan company or trust

company;

(

d) providing insurance within the meaning of the Insurance Act ;

(

e) trading in or development of real estate for purposes other than as set out in the

Act and these regulations;

(

f) construction by a person engaged in the construction industry;

(

g) selling products at retail or wholesale.

Criteria required for business development incentives from Nova Scotia Fund

(1) An applicant must meet all of the following criteria to be eligible for a business

development incentive from the Nova Scotia Fund:

(

a) they have fulfilled credit assessment requirements to justify economic viability,

including an assessment of the competence of management, probable market

demand and competition, earning prospects, the owners’ equity, the security

available with respect to any loan or loan guarantee and any potential

environmental impacts;

(

b) they have obtained all approvals, permits or licences that are required from any

regulatory agency that has lawful authority to regulate the activities of the

business;

(

c) they have or propose to have a minimum equity investment in the business of

at least 20%, in a manner and form determined by the Corporation, unless in

the circumstances of the particular case the Corporation determines otherwise.

(2) The Corporation must not provide a business development incentive from the Nova

Scotia Fund unless all of the following conditions are met:

(

a) providing the business development incentive to the applicant represents a net

economic benefit to the Province and will be in the best interests of the

Province and of the community in which the business is or is to be located;

(

b) providing the business development incentive to the applicant will not unfairly

impact on any other business already operating within the Province;

(

c) there is no acceptable competitive alternative by which a loan or loan guarantee

could be obtained by the applicant from another source on reasonable terms

and conditions;

(

d) the Corporation has considered the matters set out in its annual business plan.

(3) Business development incentives from the Nova Scotia Fund must not be provided

in the form of non-repayable contributions.

(1) Subject to any requirement for consent under

Section 11, the Corporation may

provide a business development incentive from the Nova Scotia Fund on any terms

and conditions that it considers appropriate, including any of the following:

(

a) the amount and interest rate of the incentive;

(

b) the security to be provided by an applicant;

(

c) the fees to be paid by an applicant;

(

d) the covenants to be entered into by an applicant;

(

e) the terms of repayment of the incentive, after appropriate consideration is given

by the Corporation to the economic life of any asset being financed by the

incentive;

(

f) the form and content of any documents to be signed or provided by an

applicant.

(2) Subject to any requirement for consent under

Section 11, the Corporation may

Scotia fund at any time.

Condition for business development incentives from strategic investment funds

9 The Corporation must consider the policies and guidelines established for business

development incentives from the strategic investment funds before providing a business

development incentive from the strategic investment funds.

(1) Subject to any requirement for consent under

Section 12, the Corporation may

provide a business development incentive from the strategic investment funds on any

(

a) the amount of the incentive;

(

b) the covenants to be entered into by an applicant;

(

c) the form and content of any documents to be signed or provided by an

applicant.

(2) Subject to any requirement for consent under

Section 12, the Corporation may

strategic investment funds at any time.

Consents required for business development incentives from Nova Scotia Fund

11 A decision of the Corporation approving or amending a business development incentive

from the Nova Scotia Fund that results in the total amount owed by the applicant for the

incentive and for any other business development incentive from the Nova Scotia Fund

owed by the applicant and any affiliate of the applicant exceeding the amount set out in the

following table requires the corresponding consent:

Decision

Amount exceeded

Consent required

• approval of any one business

development incentive from the Nova

Scotia Fund

• amendment of any terms and

conditions governing a business

development incentive from the Nova

Scotia Fund

$5,000,000

Minister

• approval of any one business

development incentive from the Nova

Scotia Fund

• amendment of any terms and

conditions governing a business

development incentive from the Nova

Scotia Fund

$10,000,000

Minister and

Governor in

Council

Consents required for business development incentives from strategic investment funds

(1) A decision of the Corporation approving or amending a business development

incentive from the strategic investment funds that results in the total amount for

which the applicant is eligible for the incentive and any other business development

incentive from the strategic investment funds for which the applicant is eligible and

for which any affiliate of the applicant is eligible exceeding the amount set out in the

following table requires the corresponding consent:

Decision

Amount exceeded

Consent required

• approval of any one business

development incentive from the

strategic investment funds

• amendment of any terms and

conditions governing a business

development incentive from the

strategic investment funds

$5,000,000

Minister

• approval of any one business

development incentive from the

strategic investment funds

• amendment of any terms and

conditions governing a business

development incentive from the

strategic investment funds

$10,000,000

Minister and

Governor in

Council

(2) The consent of the Minister and the Governor in Council is required for a business

development incentive from the strategic investment funds that is part of the payroll

commencement date that is earlier than the date the incentive is approved by the

Corporation.

Consent required for purchase of equity securities

13 The consent of the Minister and of the Governor in Council is required for any decision of

the Corporation to purchase or acquire additional common or preferred shares or other

equity securities, including venture capital investments, under clause 16(1A)(

b) of the Act.

Corporation as an independent production fund

14 Nothing in these regulations is intended to restrict the ability of the Corporation to be or

become certified as an independent production fund under the Broadcasting Distribution

Regulations (Canada) and, in connection with such certification, make investments as

permitted under those regulations as an independent production fund.

Power of Corporation on default

15 Upon default in the obligations owed to the Corporation by any person receiving a

business development incentive or otherwise obligated to the Corporation, the Corporation

may take steps to enforce the performance of the obligations and to realize on any security

held by the Corporation in accordance with policies and procedures adopted by the

Corporation.

Applicants deemed consent to being contacted for review of Corporation

16 Applicants are deemed to consent to being contacted by any representative of the

Corporation, the Department or an independent person appointed by the Corporation in

accordance with

Section 32 of the Act in respect of any review being conducted under the

Act.

Legislative History

Reference Tables

Business Development Incentives Regulations

N.S. Reg.

321/2015

Invest Nova Scotia Act

Note: The

information in these tables does not form part of the regulations and is

compiled by the Office of the Registrar of Regulations for reference only.

Source Law

The current consolidation of the Business Development Incentives Regulations made

under the Invest Nova Scotia Act includes all of the following regulations:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

321/2015

Sept

9, 2015

date

specified

Sept

18, 2015

The following regulations are not

yet in force and are not included in the current consolidation:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

*See subsection 3(6) of the Regulations Act for

rules about in force dates of regulations.

Amendments by Provision

ad. = added

am. = amended

fc. = fee change

ra. = reassigned

rep. = repealed

rs . = repealed and substituted

Provision affected

How affected

..........................................................

Note that changes to headings are not

included in the above table.

Editorial Notes and Corrections

Note

Effective

date

Nova Scotia Business Incorporated Act , S.N.S.

2000, c. 30 is repealed and replaced

with the Invest Nova Scotia Act , S.N.S. 2022, c. 37 (regulations continued under new Act).

Dec 1, 2022

Repealed and Superseded

N.S.

Regulation

Title

In force

date

Repealed

date

Note: Only

regulations that are specifically repealed and replaced appear in this

table. It may not reflect the entire

history of regulations on this subject matter.