Capital Acquisition Support

The Capital Acquisition Assistance program aids Prince Edward Island businesses in expanding their operations by providing financial support for investments in technology, equipment, and infrastructure. Eligible businesses can receive up to 25% of their project costs, capping at $25,000.

The Capital Acquisition Assistance program is a strategic initiative designed to support the growth and competitiveness of Prince Edward Island (PEI) businesses by aiding in the acquisition of essential capital. This funding initiative supports businesses in making significant investments in technology, equipment, and infrastructure to enhance their operational capabilities. By alleviating some of the financial burdens associated with such investments, the program helps businesses to leverage additional traditional and non-traditional financing, thereby reducing risk and fostering economic growth within the island province.

To qualify for the Capital Acquisition Assistance program, businesses must meet specific criteria to ensure that the funds are allocated to projects with the highest potential for economic impact. Businesses must: 1. **Be located and actively operating in PEI**: The business must be registered to conduct business in PEI and have an active operational presence. 2. **Focus on Export**: The business should manufacture, process, or develop goods or services primarily for export markets. This aligns with the goal of enhancing PEI’s export capacity. 3. **Operate within Strategic Sectors**: Businesses must operate in one of the targeted sectors outlined by Innovation PEI: - Bioscience - Aerospace and Defence - Advanced Manufacturing and Processing - Renewable Energy and Clean Technology - Information and Communications Technology (ICT) - Creative and Cultural Industries Additionally, businesses that provide first-of-its-kind exportable goods or services in other sectors may also be considered for funding. 4. **Clear Financial Obligations**: Businesses must not have any defaulted debt obligations registered in the Province’s Central Default Registry. Any outstanding reporting or financial obligations to Innovation PEI must be resolved before new project submissions will be reviewed.

The program supports various capital acquisitions that are directly related to establishing new businesses or expanding existing ones. Eligible activities and costs include: - **Machinery and Equipment**: Investment in new machinery and equipment that enhances production capacity and operational efficiency. - **Renovations and Leasehold Improvements**: Upgrades or alterations to physical premises that support business expansion or the establishment of new business facilities. These investments should contribute to the business’s ability to grow and increase its competitiveness in the market.

The Capital Acquisition Assistance program offers substantial financial support, but there are specific limits and conditions: - **Maximum Assistance**: The program provides up to 25% of eligible costs for a project, with a maximum of $25,000 in assistance. - **Funding Combination**: The combined funding from all non-repayable government sources must not exceed 75% of the total eligible costs. This ensures that businesses also invest their own or other third-party funds, which shows commitment and financial viability.

Simply meeting the minimum eligibility criteria does not guarantee funding. Applications are evaluated comprehensively based on several factors: 1. **Long-term Viability**: The potential for the business and the proposed project to be sustainable and successful in the long run. 2. **Export Sales**: The projected or actual sales generated from exporting goods or services. 3. **Management Qualifications and Track Records**: The experience and successful records of the business’s management team. 4. **Import Substitution**: Projects that contribute to reducing the reliance on imported goods by producing locally. 5. **Economic Benefit to PEI**: The overarching economic impact the project will have within the province, including job creation and economic diversification. 6. **Environmental Impact**: The environmental sustainability of the project and its adherence to green practices. 7. **Program Funds Availability**: The availability of funds within the program at the time of application. 8. **Employment Creation**: The number of jobs that will be created as a result of the project. 9. **Government Assistance Level**: The extent to which the business has received or is eligible to receive other government assistance.

Upon approval of an application, businesses will receive a letter of offer detailing the terms and conditions of the funding. Acceptance of this letter will form a contractual agreement between Innovation PEI and the applicant. Compliance with the terms and proper utilization of the funds are monitored to ensure that the projected economic benefits are realized.

Innovation PEI encourages prospective applicants to consult with a Business Development Officer to determine the suitability of their project for the Capital Acquisition Assistance program. This initial consultation can provide valuable guidance and potentially uncover alternative funding options if the project does not fit the program criteria. It is imperative that applications be submitted before any financial or legal commitments are made regarding the project. A well-prepared application will require the following: - A thorough history and description of the business. - Detailed financial statements for the previous two years (for existing businesses). - A completed business plan (for new businesses). - A comprehensive description of the proposed project and its alignment with the business’s products or services. - Detailed economic benefit analysis for the business and PEI. - Precise cost estimates, supported by written quotations. - Identification of funding sources, such as loans or grants. - An explanation of the business's current market position and projected market opportunities. - A list of all shareholders and key management personnel.

The Capital Acquisition Assistance program is a pivotal initiative that aids PEI businesses in achieving growth through strategic capital investments. By providing significant financial support, the program enhances the operational capacity and competitiveness of local businesses, thereby contributing to the overall economic development of Prince Edward Island. Prospective applicants are encouraged to engage with Innovation PEI early in their planning process to ensure a thorough and successful application.