Venture Capital Corporation (“VCC”)

Under section 19 (1) of the Small Business Venture Capital Act (the "Act"), a VCC is required to deposit 30% of all amounts it receives from the sale of its treasury shares into a special account called an IPA.  Funds may be released from this account only with the Administrator’s prior written authorization.  Approval for an IPA release is usually provided at the same time the VCC reports an eligible investment to the Investment Capital Branch.

Establishing an IPA 

The following documents must be completed by the VCC to establish an IPA at a bank, credit union or other financial institution of its choice, and present these documents, along with the "Instructions to Financial Institution for Setting up an IPA", to a financial institution.  The financial institution then opens an IPA and completes the “Financial Institution’s Confirmation”, which provides confirmation to the Investment Capital Branch that the IPA has been established and confirms the amount on deposit in the account.

Documentation confirming the establishment of the IPA must be sent to the Investment Capital Branch within 30 days of the registration date of the VCC. 

  Instructions to Financial Institution for Setting up an IPA  ( 26KB)

  Resolution of VCC Board of Directors (authorizing the establishment of an IPA) ( 20KB)

  Directions for Operation of an IPA ( 24KB)

  Financial Institution's Confirmation ( 0KB)

  Lawyer's IPA Confirmation ( 75KB)

  MSWord package ( 133KB)

In order to apply for the release of IPA funds, a VCC must have made an eligible investment (which has been paid for in full) or must plan to immediately make an eligible investment.  Please ensure that the IPA is properly set up and contains the correct amount of money prior to any request for release.  The VCC may apply for release of funds equal to the lesser of 37.5% of the purchase price paid or to be paid for the eligible investment or the total amount in the IPA.

A VCC should ensure all requirements are met prior to the investment and request for a IPA Release.

  IPA Release Application and Investment Report ( 42KB)