Entrepreneur Loan Program

Who is eligible?

Who is not eligible

This grant excludes certain companies and industries due to their status or main activity. The restrictions ensure that funds are allocated to industries that lack similar existing supports and avoid sectors specifically excluded from eligibility.

• Pawnbrokers, pay day loan services, cheque cashing, and white label cash machines.
• Consulting businesses.
• Grocery or convenience stores.
• Food and beverage services.
• Fishing, farming, and forestry industries where similar supports already exist.
• Real estate development/brokerage, bed & breakfast/motel/cottage operations, insurance, or business brokerage.
• Schools, charities, religious organizations, and professional/financial services.

Eligible expenses

This grant supports business projects aimed at starting new ventures and facilitating expansion and improvements in existing businesses within Prince Edward Island. The eligible activities focus on providing access to loans, incentivizing economic growth, and creating jobs for residents.

• Launching new businesses in Prince Edward Island.
• Expanding or improving established businesses in the province.
• Investing in viable business ventures that stimulate the local economy.

Eligible geographic areas

This grant is available exclusively to companies located in Prince Edward Island, highlighting its focus on regional economic development and job creation.

• Prince Edward Island, Canada

Here are additional relevant details for this grant:

• Interest on loans is calculated at a floating rate, specifically the TD Bank prime rate plus an additional three per cent.
• Loans provided under this program have a maximum term of seven years, providing entrepreneurs with a structured repayment schedule.
• Funding for working capital is capped at $35,000, indicating limitations on the usage for operational expenditure versus capital costs.
• The program requires entrepreneurs to maintain an equity stake, indicating a minimum of 10% of the loan amount must be available as equity at the time of approval.
• Additional guarantees and securities may be requested by Finance PEI, which could involve personal or external guarantors to secure the loan.
• The business needs to adhere to all licensing, permits, and regulatory registrations pertinent to its operations at various governmental levels.
• If the business is sold or transferred within the loan term, the loan must be repaid immediately, ensuring control remains with the original borrower.