Manufacturing and Processing Assistance - Capital Loan

Q: How much funding can be received?

Manufacturing and Processing Assistance - Capital Loan Funds up to 80% of admissible expenses.

Q: What is the deadline to apply?

The program is accepting continuous intake

Q: Is the Manufacturing and Processing Assistance - Capital Loan a grant, loan, or tax credit?

Manufacturing and Processing Assistance - Capital Loan is a Loans and Capital investments

Q: Who are the financial supporters of the Manufacturing and Processing Assistance - Capital Loan?

Manufacturing and Processing Assistance - Capital Loan is funded by Government of Prince Edward Island, Finance PEI

Q: Who is eligible for the Manufacturing and Processing Assistance - Capital Loan program?

To be eligible for the Manufacturing and Processing Assistance - Capital Loan program, you must: • The business must carry on or intend to carry on business in the province. • The business must operate in manufacturing and processing that produces a product by mechanical method from a raw material that is altered to add value.

Q: Who can I contact for more information about the Manufacturing and Processing Assistance - Capital Loan?

You can contact Government of Prince Edward Island.

Q: Where is the Manufacturing and Processing Assistance - Capital Loan available?

The Manufacturing and Processing Assistance - Capital Loan program is available the province of PE.

Last Update: July 22, 2025

PE, Canada

Loan to purchase or refurbish capital assets in Prince Edward Island (PEI)

At a glance

Eligible Funding

Up to 80% of project cost

Timeline

Open Date : July 9, 2024
Closing date : July 9, 2024

Financing Type

Loans and Capital investments

Eligible Industries

Manufacturing

Funds Providers

Unspecified

Program status

Closed

Overview

Access this term loan (with a term of up to 20 years and worth up to 80% of the market value or purchase price of capital assets, whichever is less) to refurbish capital assets or to restructure debt.

Financing terms and conditions

This grant provides various loan options to facilitate capital acquisition and operational financing for manufacturing and processing businesses in Prince Edward Island. The modalities are designed to support the purchase of assets, debt restructuring, and operational needs to enhance business growth.

Capital loans available for purchasing or refurbishing capital assets, amortized over the asset's lifespan, with a loan term of up to 20 years.
Secured loans with a maximum limit of 80% of the asset's fair market value or purchase price, with flexible repayment options aligned with cash flow.
Intermediate term loans for asset improvements, excluding non-revenue generating vehicles, with a repayment term not exceeding 10 years.
Operating loans offering up to 100% financing for inventory and operational costs, to be repaid from inventory sales based on cash flow.
Alternative security options may be considered where a first charge on real property is not feasible.

Activities funded

The Manufacturing and Processing Assistance - Capital Loan is designed to support businesses in Prince Edward Island to acquire and enhance their capital assets. Eligible activities include purchasing real estate, specialized equipment, and production inventory, aiding in business growth and development.

Purchase of land and buildings for manufacturing and processing operations.
Acquisition of specialized equipment to enhance production capabilities.
Investment in production inventory to support operational needs.
Refurbishment of existing capital assets to improve efficiency.
Debt restructuring to stabilize financial standing associated with capital investments.

Examples of admissible projects:

$ 80,000

Purchase and set up of a coffee roastery for small business growth

$ 344,000

Upgrading production line for a local craft brewery to increase efficiency

$ 1,160,000

Purchase and refurbishment of a warehouse for logistics operations expansion

$ 120,000

Refurbishment of a community center to improve facilities for local events

$ 240,000

Debt restructuring for a local non-profit facing financial difficulties

$ 880,000

Purchase of specialized medical equipment for a new clinic, focusing on cardiology

Eligibility

Eligibility for this grant is determined by specific requirements related to the business operations and asset acquisition.

The business must carry on, or intend to carry on, business in the province of Prince Edward Island.
The business must be involved in manufacturing and processing, producing a product by mechanical method from raw materials that are altered to add value.

Who is eligible?

This financing is intended for individuals or entities engaged in manufacturing and processing activities within Prince Edward Island. Eligibility requires that the business operates within the province and produces value-added products through mechanical processes using raw materials. Special consideration is given to those intending to purchase capital assets or inventory to enhance their operational capabilities.

Eligible expenses

The grant provides financial assistance to manufacturing and processing businesses for various capital and operational expenses. Eligible activities include purchasing and upgrading assets necessary for production and managing day-to-day operations.

Purchase and refurbishment of capital assets such as land, buildings, and specialized equipment.
Debt restructuring for existing business operations.
Financing improvements to business assets, excluding non-essential vehicles.
Purchase of production inventory necessary for manufacturing processes.
Managing accounts receivables and operating expenses through dedicated operating loans.

Eligible geographic areas

This grant is available to companies within a specified region based on the funding body’s jurisdiction. Eligible geographical areas are defined by the province's criteria for supporting local businesses.

Businesses operating in the province of Prince Edward Island (PEI).

Selection criteria

There are evaluation and selection criteria for this grant. The evaluation is based on the company's operational cash flow and the expected impact of the project on the business.

Operational cash flow of the company
Expected impact of the project on the business

How to apply

Determine Eligibility

Review the criteria to ensure your business operations qualify as manufacturing or processing.
Verify that financial needs align with the available loan types (capital, intermediate, operating).

Prepare Required Documentation

Gather financial statements to demonstrate the business's cash flow.
Prepare a business plan outlining the purchase of capital assets or inventory, including purchase orders and contracts.
Collect evidence of valuation or purchase price for the assets.

Application Form Completion

Obtain and fill out the loan application form from Finance PEI.
Ensure all sections are completed accurately with supporting information attached.

Submission of Application

Submit the completed application form with all required documentation to Finance PEI.
Mail or deliver in person to the designated Finance PEI office.

Await Confirmation

Receive communication from Finance PEI regarding receipt of your application.
Be prepared to provide additional information if requested during the review process.

Additional information

The program offers financing options for businesses involved in manufacturing and processing operating in Prince Edward Island, Canada. These businesses must produce a product through mechanical methods from raw materials to add value.

Businesses conducting operations within the provincial boundaries
Companies adding value through the production of a product

Based on provided information, exclusions for this grant were not specified.

Eligibility specifics regarding ineligible businesses or activities were not disclosed.

Eligible expenses include purchasing capital assets, covering operational costs, acquiring land and buildings, acquiring specialized equipment, production inventory procurement, and improvements to business assets.

Capital asset acquisition
Operational funding
Land and building purchases
Specialized equipment purchase
Procurement of production inventory
Business asset enhancements

Selection criteria involve evaluating the company's operational cash flow and project impact on business growth.

Evaluation of operational cash flow
Impact assessment on business growth

Phase 1: Determine eligibility criteria
- Confirm if your business qualifies under manufacturing and processing
- Ensure intended loan use is within specified purposes
Phase 2: Document collection
- Gather relevant financial statements
- Prepare a detailed business plan
- Provide asset purchase insights
- Supplement with other financial documents
Phase 3: Application form completion
- Accurately fill out the application form
- Include necessary support documentation
Phase 4: Application submission
- Submit complete application package to designated office
Phase 5: Review and decision awaitment
- Stand by as agency processes application
- Receive loan application status post-assessment

Apply to this program

Frequently Asked Questions about the Manufacturing and Processing Assistance - Capital Loan Program

Here are answers to the most common questions about the Manufacturing and Processing Assistance - Capital Loan. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.