Entrepreneur Loan Program
PE, Canada
Loan for PEI entrepreneurs
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Retail trade
grant_single|grantors
- Government of Prince Edward Island
- Finance PEI
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a loan of up to $100,000 with a maximum 7 year term for starting, improving or expanding a business.
grant_single_labels|projects
This grant is specifically for entrepreneurs and businesses located within Prince Edward Island. It is designed to promote local economic development and job creation for Islanders.
- Prince Edward Island
grant_single|admissibleProjectsExample
$90,000
Creating a mobile app for local tourism promotion
$55,000
Renovating and improving an existing community center
$80,000
Launching a social enterprise focused on waste reduction in St John's
$60,000
Establishing a local bakery with sustainable practices
$94,000
Launching a technology startup focused on AI solutions
$35,000
Expanding a community garden project
grant_single_labels|admissibility
Eligibility for the Entrepreneur Loan Program is subject to specific criteria related to the applicant's residency, age, business ownership, and financial capacity.
- The applicant must be a resident of Prince Edward Island and 18 years of age or older.
- The applicant must be the owner/operator of the business.
- In the case of a partnership, each partner must be a co-applicant, and for a corporation, each shareholder must be a co-applicant.
- The applicant must have 10 per cent of the total loan available in equity at the time of loan approval.
- The business must not be involved in sectors such as pawnbroking, pay day loan, cheque cashing, consulting, grocery/convenience stores, food and beverage services, fishing, farming, forestry, real estate development/brokerage, hospitality operations, insurance, business brokerage, schools, charities, religious organizations, and professional/financial services where other supports exist.
- There must be sufficient capacity for the industry in the applicant's area as determined by the staff of Finance PEI.
grant_eligibility_criteria|who_can_apply
The Entrepreneur Loan Program is open to individuals who are residents of Prince Edward Island, aged 18 or older, and are owner/operators of the business. In the case of partnerships, each partner needs to be a co-applicant, and for corporations, each shareholder must be a co-applicant. Applicants must have at least 10% equity available of the total loan amount at the time of approval. The program is aimed at new and established businesses seeking funds for investment, with the exclusion of certain sectors such as pawnbrokers, convenience stores, and any services where similar financial support is available elsewhere, among others.
grant_eligibility_criteria|who_cannot_apply
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.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
The Entrepreneur Loan Program provides funding for capital costs and working capital, subject to certain restrictions and conditions.
- Capital costs for business improvements and expansion upon submission of invoices/receipts.
- Working capital financing, up to a maximum of $35,000.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. The criteria include:
- Economic impact of the project
- Innovation and feasibility of the proposal
- Organizational capacity and financial stability
- Alignment with government priorities
grant_single_labels|register
Here are the steps to submit an application for the Entrepreneur Loan Program:
- Step 1: Complete Required Forms
- Fill out the Entrepreneur Loan application form.
- Prepare a Business Plan using the provided Business Plan form.
- Complete the Cash Flow Forecast form including two to three years' cash flow projections.
- Step 2: Submit Application
- Submit the completed application and business plan documents to an account manager at Finance PEI.
- Ensure that all forms are correctly filled, signed, and accompanied by necessary projections and plans.
- Step 3: Attend Interview
- Attend an interview with a Finance PEI account manager to discuss your business proposal.
- During the interview, you will discuss further steps needed to assess your eligibility.
grant_single_labels|otherInfo
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.
grant_single_labels|contact
financepei@gov.pe.ca
902-368-6200
Apply to this program
Entrepreneur Loan Program: Fueling Business Growth in PEI
The Entrepreneur Loan Program offers financial assistance for new and existing businesses in Prince Edward Island, ensuring access to necessary funding while stimulating local economic growth. With a maximum loan amount of $100,000 and terms up to seven years, this program aims to foster job creation and business development for Islanders.
Detailed Insights into the Entrepreneur Loan Program
The Entrepreneur Loan Program spearheaded by Finance PEI serves as a crucial financial mechanism to bolster business ventures within Prince Edward Island. Designed to cater to both nascent and established enterprises, this initiative seeks to alleviate the financial barriers often encountered by small business owners, thereby stimulating economic expansion and job creation in the region. With an emphasis on empowering local entrepreneurs, the program provides substantial loan opportunities capped at $100,000, conceptualized to invigorate businesses at various stages of their lifecycle, whether just getting off the ground or looking to expand.
Applicants must be residents of Prince Edward Island, with business operators required to personally present their business plans. Critical to the application process is the demonstration of a sound business plan supported by a comprehensive cash flow forecast, ensuring that prospective businesses can project their fiscal performance over at least two to three years. This forecast is vital as it enables both the applicant and the lending body, Finance PEI, to gauge the financial viability and sustainability of the proposed or expanding business venture.
One of the standout features of this program is its accessibility; the loans offered can cover up to 100% of the requested amount minus recoverable taxes, ensuring that entrepreneurs have minimal out-of-pocket expenses in the capitalization phase. While the interest rate is determined as a floating rate of TD Bank prime plus three percent, this is a competitive rate considering the capital-intensive nature of business startups and expansions. Furthermore, given the fiscal responsibilities tied to business ownership, beneficiaries of the program are obliged to secure any necessary permits, licenses, and insurance pertinent to their business operation. This requirement underscores the program's commitment to fostering legitimate and compliant business practices within the province.
The versatility of the Entrepreneur Loan Program is also demonstrated in its sectoral reach, although certain industries like pawnbroking, consulting, and convenience retail have been excluded from funding eligibility, primarily due to the saturation or provision of other support programs in these sectors. By focusing funds on industries where there is capacity for growth and less financial competition, Finance PEI ensures that its investments yield maximal economic benefits and sustainable job creation.
Another pivotal component of the program is the stipulation of a 10 percent equity investment by applicants, functioning as both a risk mitigator for Finance PEI and a commitment indicator from the entrepreneur. This requirement aligns with best practices in lending, ensuring that business owners have a vested interest in their ventures’ success.
Finally, the Entrepreneur Loan Program acts as a driving force in the local economy by cultivating conditions for new businesses to flourish while providing established firms with the necessary leverage to innovate and grow. Its structure not only offers financial resources but also an implied mentorship through the hands-on application process and continued engagement with account managers who ensure that borrowers have the support they need as their businesses evolve.
With its strategic alignment towards enhancing business competitiveness and economic vibrancy within Prince Edward Island, the Entrepreneur Loan Program stands as a vital tool for local entrepreneurs eager to realize their business ambitions while contributing to the province's economic vitality.
