9. (1) An investment shall be an eligible investment if, (a) the investment is made in a small business and 75 per cent or more of the wages and salaries are paid by the small business, (i) to employees whose ordinary place of employment is a permanent establishment of the small business located in northern or eastern Ontario where the small business development corporation making the investment is a Northern and Eastern small business development corporation, and (ii) in respect of operations in Ontario where the small business development corporation making the investment is not a Northern and Eastern small business development corporation; (b) the investment is made in a small business primarily engaged in, (i) prescribed manufacturing and processing, or (ii) prescribed tourist activities, or (iii) any other business activity that may be prescribed with respect to investment in a business located in northern or eastern Ontario by a Northern and Eastern small business development corporation where the small business development corporation making the investment is a Northern and Eastern small business development corporation, or (iv) any other prescribed business activity; (c) the investment is the purchase and acquisition from a small business by the small business development corporation of equity shares issued by the small business but, where the equity shares are issued as part of a transaction involving the purchase or redemption, directly or indirectly, of any previously issued shares of the small business or an affiliated corporation, the investment is an eligible investment only to the extent that the investment represents net new equity capital calculated in the manner prescribed; (d) the investment is not used by the small business for the purpose of, (i) relending, (ii) investment in land except such land as is incidental and ancillary to the prescribed manufacturing and processing, prescribed tourist activities, business activities prescribed with respect to investment in a business located in northern or eastern Ontario by a Northern and Eastern small business development corporation or other prescribed business activity or activities in which the small business is primarily engaged, (iii) reinvestment outside Canada, (iv) purchasing or acquiring the securities of any person, or (v) any prescribed purpose or use; (e) the total number of equity shares acquired by all shareholders of the small business which are small business development corporations does not exceed 49 per cent of the issued and outstanding equity shares of the small business determined in accordance with subsections (2) and (3); (f) the investment is made in a small business in which, (i) the total number of equity shares of the corporation beneficially owned, directly or indirectly, by non-residents or over which non-residents exercise control or direction does not exceed 25 per cent of the total number of issued and outstanding equity shares of the corporation, or (ii) the total number of equity shares of the corporation beneficially owned, directly or indirectly, by a non-resident or over which he, she or it exercises control or direction, together with other shareholders associated with him, her or it if any, does not exceed 10 per cent of the total number of issued and outstanding equity shares of the corporation; (g) the investment is made in a small business primarily located within the geographical boundaries prescribed by the regulations where the investment is made by a Northern and Eastern small business development corporation; and (h) the investment is made in a small business that is not of a type prescribed by regulation.  R.S.O. 1990, c. S.12, s. 9 (1); 1993, c. 27, Sched. Deemed issued equity shares (2) For the purposes of clause (1) (e), any additional equity shares that would be issued, (a) on the exercise of a conversion right attached to an existing debt obligation or outstanding share of the small business; or (b) on the exercise of any existing option, warrant or right issued or granted by the small business, shall be deemed to have been issued and to be outstanding equity shares. Deemed ownership (3) In determining the percentage of shares of a small business held by a small business development corporation, (a) equity shares of the small business held by a shareholder of the small business development corporation, and by any associates of such shareholder, shall be deemed to be held by the small business development corporation; and (b) options, warrants and rights in respect of equity shares of the small business issued by any person other than the small business and held by a shareholder of the small business development corporation, or by any associates of such shareholder, shall be deemed to have been exercised and the equity shares in respect thereof to be held by the small business development corporation.  R.S.O. 1990, c. S.12, s. 9 (2, 3).