How much funding can be received?

Grow your business by offering potential private-sector investors a 20% direct rebate, to a maximum of $200,000, on the purchase price of their equity investment in your company.

grant_single_labels|terms_and_conditions

The Equity Investors Incentive provides a structured financial rebate to encourage private investment in approved Prince Edward Island-based businesses. The program's financial modalities aim to bolster investment attractiveness by improving return on investment for investors.

The incentive offers a direct rebate of up to 20% of the purchase price of the equity investment.
The maximum rebate available to all eligible investors in a single investee company is capped at $200,000.
Rebates are disbursed directly to the investors, contingent upon completion of required documentation and compliance with program guidelines.
Investors must hold the shares for a minimum of four years to qualify for the rebate, maintaining compliance with investment terms to avoid repayment obligations.

grant_single_labels|projects

The Equity Investors Incentive facilitates projects that aim to enhance the growth and economic contribution of small businesses in Prince Edward Island. The eligible activities for this grant focus on providing financial relief and fostering expansion within key industries.

Reduction of requirements for conventional term debt and working capital financing through provision of additional equity.
Financial support to ease monthly cash flow burdens for small businesses.
Funding for expansion, diversification, product development, or commercialization of new technologies, products, or processes.
Injecting technical and managerial expertise into Island-based companies.

grant_single|admissibleProjectsExample

$ 20,000

Develop a new mobile application for mental health support

$ 20,000

Expand a local organic farm's product range and distribution network

$ 20,000

Modernize a community theater's infrastructure and develop new programs

$ 20,000

Launch a fintech platform targeting underbanked communities

$ 20,000

Launch an eco-friendly product line and upgrade manufacturing processes

$ 20,000

Expand a renewable energy company’s solar panel production capacity

grant_single_labels|admissibility

To be eligible for the Equity Investors Incentive, a business must meet the following criteria:

Consult with Innovation PEI prior to submitting an application.
Be a taxable, private Canadian corporation.
Be registered to do business in Prince Edward Island.
Have its head office and primary business operations in Prince Edward Island.
Have been in operation in Prince Edward Island for a minimum of one year.
Be a provider of exportable goods or services in one of the strategic sectors, including bioscience, aerospace and defence, advanced manufacturing and processing, renewable energy and clean technology, information and communications technology, creative and cultural industries, or first-of-its-kind goods or services in other sectors.
Pay at least 75% of its payroll to employees residing in Prince Edward Island.
Have fewer than 50 employees.
Have assets less than $10 million.
Ensure compliance with securities legislation.
Have a well-developed business plan and demonstrate appropriate use of funds raised to support expansion and/or ongoing operations in Prince Edward Island.
Not have any defaulted outstanding debt obligation on file in the Government of Prince Edward Island Central Default Registry.

grant_eligibility_criteria|who_can_apply

The Equity Investors Incentive is aimed at businesses in Prince Edward Island that are seeking investment to support their expansion and operations. The following criteria determine which businesses can apply:- They must be a taxable, private Canadian corporation.- They should be registered to do business in Prince Edward Island.- The head office and primary business operations must be located in Prince Edward Island.- The business needs to have been operational in Prince Edward Island for at least one year.- They should provide exportable goods or services in designated strategic sectors, including bioscience, aerospace and defence, advanced manufacturing and processing, renewable energy and clean technology, information and communications technology, creative and cultural industries, or offer first-of-its-kind exportable goods or services in other sectors.- At least 75% of their payroll should be paid to employees residing in Prince Edward Island.- The business must have fewer than 50 employees and assets less than $10 million.- They must ensure compliance with securities legislation and not have any defaulted outstanding debt obligations with the Government of Prince Edward Island's Central Default Registry.- They need to demonstrate a well-developed business plan and appropriate use of funds for expansion and/or ongoing operations in Prince Edward Island.

grant_eligibility_criteria|who_cannot_apply

This grant excludes certain individuals and organizations based on their relationship or existing financial obligations with the investee company or Provincial Government. Specific restrictions are detailed to ensure compliance with the grant's objectives.

An individual or company that is a current or previous shareholder of the investee company.
Those related to the investee company as defined under section 251 of the Income Tax Act.
Entities with a defaulted outstanding debt obligation on file in the Government of Prince Edward Island Central Default Registry.
Venture capital organizations that have received financial contributions from the Province of Prince Edward Island.
Companies receiving funding support from Innovation PEI.

grant_eligibility_criteria|eligible_expenses

The eligible expenses for this grant focus on the appropriate use of funds raised to support business activities and improvements.

Reduction of requirements for conventional term debt and working capital financing.
Support for business expansion or diversification.
Product development or commercialization of new technology, products, or processes.
Injection of technical or managerial expertise.

grant_eligibility_criteria|zone

This grant is specifically available to businesses with their primary operations in Prince Edward Island, Canada. It aims to boost private sector investment and support the economic growth of this region.

Businesses located in Prince Edward Island, Canada.

grant_single_labels|criteria

The evaluation and selection of projects for the Equity Investors Incentive grant consider various criteria to ensure the economic development of Prince Edward Island and the success of the supported businesses.

Potential for long-term viability, including qualifications and track record of senior management.
Economic benefit to the Province of Prince Edward Island.
Employment creation in the region.
Potential for export sales and import substitution.
Environmental impact of the project's business operations.
Availability of program funds to support the project.
Level of assistance from other government programs that the business has received or is available to it.

grant_single_labels|register

Here are the steps to submit an application for the Equity Investors Incentive:

Step 1: Consultation with Innovation PEI
Contact an Innovation PEI staff member to discuss your company's specific situation.
Determine if the Equity Investors Incentive is appropriate for your business needs.
Step 2: Prepare the Application
Gather the necessary documentation, including financial statements, tax returns, business plan, and legal opinion on securities compliance.
Prepare a detailed business plan outlining business activities, intended use of funds, and potential economic impact.
Step 3: Submit the Application
Compile all required documents as specified in the Equity Investors Incentive Guidelines.
Submit the application to Innovation PEI for review, ensuring all conditions and documentation are met.
Step 4: Application Review
Innovations PEI reviews the application to ensure compliance with program criteria.
Await the letter of offer if the application is approved.
Step 5: Acceptance of Offer
If approved, accept the letter of offer to constitute a contract with Innovation PEI.
Ensure understanding of all incentive terms and conditions including monitoring and compliance requirements.
Step 6: Secure Investors
Find eligible investors and complete the Investor Application Form for each.
Ensure all share transactions are documented and in compliance with securities legislation.
Step 7: Report of Share Sale
Submit the Report of Share Sale and Purchase along with supporting documentation to Innovation PEI.
Trigger payment of the incentive to eligible investors upon verification by Innovation PEI.

grant_single_labels|otherInfo

Additional considerations are important for applicants of the Equity Investors Incentive program:

Compliance with Prince Edward Island securities legislation is crucial; investee companies must secure an opinion from a qualified legal practitioner to confirm their adherence to these laws.
Investee companies should anticipate a four-year commitment from investors, as incentives could be reclaimed if shares are redeemed within this period.
The program necessitates detailed performance monitoring, requiring annual submissions of financial statements and updates on shareholder transactions.
Careful consideration should be given to the use of raised funds; prohibited uses include paying dividends or acquiring unrelated securities.
Innovation PEI reserves the right to reclaim funds from investee companies that fail to comply with program guidelines or cease operations.