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
- Finance PEI
- Government of Prince Edward Island
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
The Entrepreneur Loan Program in Prince Edward Island provides up to $100,000 for new and existing businesses to stimulate economic growth and create jobs. Eligible activities must not fall under excluded sectors such as pay day loans, pawn brokering, or convenience stores.
- Starting new businesses
- Improving and expanding established firms
grant_single|admissibleProjectsExample
$90,000
Moncton
Creating a mobile app for local tourism promotion
$55,000
Fredericton
Renovating and improving an existing community center
$80,000
St. John's
Launching a social enterprise focused on waste reduction in St John's
$60,000
Charlottetown
Establishing a local bakery with sustainable practices
$94,000
Halifax
Launching a technology startup focused on AI solutions
$35,000
Summerside
Expanding a community garden project
grant_single_labels|admissibility
The eligibility criteria for the Entrepreneur Loan Program in Prince Edward Island include being a resident of the province, being 18 years or older, and owning or operating a business. Additionally, there are specific exclusions for various sectors and requirements for co-applicants in partnerships or corporations.
- You must be a resident of Prince Edward Island
- Be 18 years of age or older
- Be owner/operator of the business
- If the business is a partnership, each partner must be a co-applicant
- For a corporation, each shareholder must be a co-applicant
- At the time of the loan approval, have 10 per cent of the total loan available in equity
- Working capital financing will not exceed $35,000
- Funding for capital costs will only be issued when Finance PEI receives invoices/receipts, minus refundable taxes
- Exclusions apply to pawnbrokers, pay day loans, cheque cashing, white label cash machines, consulting, grocery/convenience stores, food and beverage services, fishing, farming, forestry, real estate development/brokerage, bed & breakfast/motel/cottage operations, insurance or business brokerage, schools, charities, religious organizations, and professional/financial services.
- Businesses will only be eligible for financing when sufficient capacity exists for the industry in the area, as determined by the staff of Finance PEI
grant_eligibility_criteria|who_can_apply
Eligible types of companies for the Entrepreneur Loan Program include those that are new or established businesses in Prince Edward Island, provided they meet certain criteria and do not fall under the specified ineligible sectors. Here is a list of the eligible company criteria:
- The business is operated by a resident of Prince Edward Island who is 18 years of age or older.
- The business must have 10 per cent of the total loan available in equity at the time of loan approval.
- If the business is a partnership, each partner must be a co-applicant; for corporations, each shareholder must be a co-applicant.
- The business activity does not fall under the ineligible sectors such as pawnbrokers, payday loan services, consulting, grocery/convenience stores, and more as specified.
- The business must operate in an area with sufficient industry capacity as determined by Finance PEI staff.
grant_eligibility_criteria|who_cannot_apply
Yes, certain types of companies are not eligible for the grant under the Entrepreneur Loan Program:
- pawnbrokers, pay day loan, cheque cashing and white label cash machines
- consulting
- grocery/convenience stores
- food and beverage services
- fishing, farming and forestry where similar supports already exist
- real estate development/brokerage, bed & breakfast/motel/cottage operation and insurance or business brokerage
- schools, charities and religious organizations and professional/financial services
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include investments in new and existing businesses. However, funding for capital costs will only be issued when Finance PEI receives invoices/receipts, minus refundable taxes.
- Investments in new and existing businesses
- Working capital financing up to $35,000
- Capital costs with valid invoices/receipts
grant_eligibility_criteria|zone
Eligible geographic zones for this grant include:
- Prince Edward Island
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
- Step 1: Complete the Entrepreneur Loan application form.
- Step 2: Complete the Business Plan form.
- Step 3: Complete the Cash Flow Forecast form with a minimum of two to three years' cash flow projections to support your request.
- Step 4: Submit the completed application and business plan to an account manager with Finance PEI.
- Step 5: Participate in an interview with the account manager to discuss the business proposal and the next steps to determine eligibility.
grant_single_labels|otherInfo
The Entrepreneur Loan Program offers financial support for new and existing businesses in Prince Edward Island with specific eligibility requirements and application procedures.
- Email contact for general inquiries is financepei@gov.pe.ca
- Website for more information: http://financepei.ca
- General contact phone number: 902-368-6200
- Fax number: 902-368-6255
- The office is located at 2nd Floor, 94 Euston Street, Charlottetown, PE, C1A 7M8
grant_single_labels|contact
financepei@gov.pe.ca
902-368-6200
Apply to this program
PEI Entrepreneur Loan Program Overview
The PEI Entrepreneur Loan Program is designed to support new and existing businesses in Prince Edward Island with up to $100,000 in funding. This program aims to stimulate economic growth, create jobs, and make financing accessible to businesses that may otherwise not qualify for loans.
Detailed Explanation of the PEI Entrepreneur Loan Program
The PEI Entrepreneur Loan Program is a vital initiative introduced by the Province of Prince Edward Island. This program addresses some of the significant financial challenges faced by entrepreneurs, especially those looking to start new businesses or expand existing ones. The primary goal of the program is to stimulate economic growth and job creation within the province.
Here we will delve into the specifics of the program, covering everything from eligibility criteria and application processes to the benefits and obligations for recipients. This detailed guide aims to provide a thorough understanding of how the PEI Entrepreneur Loan Program can be leveraged to foster business development and contribute to the broader economic landscape of Prince Edward Island.
Eligibility Criteria
To qualify for the PEI Entrepreneur Loan Program, applicants must meet the following conditions:
- Residency: Applicants must be residents of Prince Edward Island.
- Age: Applicants must be 18 years of age or older.
- Business Ownership: Applicants must be owner/operators of the business.
- Partnerships and Corporations: If the business is a partnership, each partner must be a co-applicant. For corporations, each shareholder must be a co-applicant.
- Equity Requirement: At the time of loan approval, the applicant must have 10% of the total loan amount available in equity.
Loan Details
The program offers the following loan specifics:
- Amount: Entrepreneurs can receive up to $100,000 in loans.
- Term: The loans have terms of up to seven years.
- Interest Rate: Interest is charged at a floating rate of TD Bank prime plus three (3) percent.
- Working Capital: Financing for working capital is capped at $35,000.
- Capital Costs: Funds for capital costs will only be released upon submission of invoices/receipts, minus refundable taxes.
Ineligible Activities
Specific activities within the following sectors are not eligible for financing:
- Pawnbrokers, payday loans, cheque cashing, and white label cash machines
- Consulting
- Grocery/convenience stores
- Food and beverage services
- Fishing, farming, and forestry (where similar supports already exist)
- Real estate development, brokerage, bed & breakfast, motel, cottage operation, and insurance or business brokerage
- Schools, charities, religious organizations, and professional/financial services
Businesses will also only qualify for financing if sufficient capacity exists for the industry in the area, as determined by the staff of Finance PEI.
Application Process
To apply for the PEI Entrepreneur Loan Program, applicants must complete the following steps:
- Fill out the Entrepreneur Loan application form.
- Complete the Business Plan form.
- Prepare a Cash Flow Forecast form, with a minimum of two to three years' cash flow projections to support the request.
Submit the completed application and business plan to an account manager with Finance PEI. The account manager will conduct an interview to discuss the business proposal and outline the next steps to determine eligibility.
Borrower Requirements
If the loan is approved, borrowers must adhere to the following requirements:
- Obtain any necessary licenses, permits, and insurance required for the business and register the business as per federal, provincial, or municipal regulations.
- Sign all appropriate documentation forms required by Finance PEI, including loan agreements and guarantees for each individual with ownership. Additional guarantors and security may be needed.
- Open a business account with a financial institution and deposit an amount equal to 10% of the approved loan amount.
- Repay the full amount of the outstanding loan immediately if the business is sold or transferred during the loan term or if Finance PEI makes a demand for payment.
Benefits of the Program
The PEI Entrepreneur Loan Program offers several benefits aimed at supporting the entrepreneurial ecosystem in Prince Edward Island:
- Access to Capital: Provides up to $100,000, making financing accessible for businesses that might not otherwise qualify for loans.
- Economic Growth: Stimulates economic growth by enabling new business ventures and the expansion of existing enterprises.
- Job Creation: Contributes to job creation, thereby supporting the local economy and community.
- Support Structure: Offers a structured support system through Finance PEI, including account manager assistance and thorough application review processes.
Final Thoughts
The PEI Entrepreneur Loan Program is a comprehensive financial initiative aimed at fostering entrepreneurship within Prince Edward Island. By providing up to $100,000 in loans, the program addresses crucial financing needs and contributes to the broader goals of economic growth and job creation.
Understanding the eligibility criteria, application process, and borrower requirements is essential for potential applicants. With the support provided by Finance PEI, entrepreneurs can navigate the complexities of the financial landscape and leverage this program to achieve their business objectives.