Manufacturing and Processing Assistance - Capital Loan
PE, Canada
Loan to purchase or refurbish capital assets in Prince Edward Island (PEI)
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJuly 09, 2024
- grant_single|closingDateJuly 09, 2024
- grant_single|grantStatusClosed
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Government of Prince Edward Island
- Finance PEI
grant_single|status
grant_card_status|closed
grant_single_labels|preview
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.
grant_single_labels|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.
grant_single_labels|projects
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.
grant_single|admissibleProjectsExample
$ 120,000
Refurbishment of a community center to improve facilities for local events
$ 80,000
Purchase and set up of a coffee roastery for small business growth
$ 240,000
Debt restructuring for a local non-profit facing financial difficulties
$ 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
$ 880,000
Purchase of specialized medical equipment for a new clinic, focusing on cardiology
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|who_cannot_apply
Based on the grant context provided, specific types of companies that are not eligible for this grant were not mentioned.
Therefore, there are no specific types of companies excluded from eligibility for this grant.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
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).
grant_single_labels|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
grant_single_labels|register
- Step 1: 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).
- Step 2: 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.
- Step 3: Application Form Completion
- Obtain and fill out the loan application form from Finance PEI.
- Ensure all sections are completed accurately with supporting information attached.
- Step 4: 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.
- Step 5: Await Confirmation
- Receive communication from Finance PEI regarding receipt of your application.
- Be prepared to provide additional information if requested during the review process.
grant_single_labels|otherInfo
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
Empower Your Manufacturing Business with Dedicated Financial Support
This financial program offers tailored loan options for businesses involved in manufacturing and processing, providing crucial funding to acquire capital assets or manage operational needs effectively. Designed to support growth and productivity, these loans are structured to ensure financial feasibility without overburdening your business.
Detailed Overview of Finance PEI's Manufacturing and Processing Loan Programs
Finance PEI's loan programs are structured to provide substantial assistance to manufacturing and processing businesses aiming to enhance their operational efficiency and capital infrastructure. Through capital and operating loans, the program supports varied financial needs ranging from acquiring land and specialized equipment to managing day-to-day expenditures such as inventory purchases. By offering loans that can be amortized over up to 20 years, businesses can plan their financial strategies with greater flexibility and less immediate pressure on cash flow.
Operating within the set upper limits—80% of fair market value for capital assets and up to 100% for inventory financing—these loan facilities are structured with an eye towards minimizing financial burden and maximizing business stability. Intermediate term loans are another notable feature, providing financing tailored to the lifespan of the financed asset, but not surpassing a decade. This approach ensures that businesses align their debt service with the useful life of the equipment, thereby optimizing financial resource allocation.
Capital loans are unique in that they not only assist in asset purchase but also facilitate refurbishments and, in certain scenarios, debt restructuring. This versatility is particularly beneficial for businesses aiming to upgrade existing infrastructure to enhance productivity and expand operational capacities. Additionally, the provision for securing loans either through a first charge on real property or the asset in question allows for flexible collateral arrangements, adjusting to the specific needs and available resources of each business.
With operating loans, businesses can leverage up to full financing for critical operational costs, vital for maintaining steady cash flow and ensuring continuous production activities. This is especially crucial for managing inventory, which can be swiftly converted to cash upon sale, thus supporting liquidity and operational turnover.Furthermore, the accessibility of financing based on signed contracts and purchase orders facilitates a streamlined funding process, ensuring that businesses can maintain momentum in their production cycles without interruptions due to financial constraints.
Finance PEI’s assistance is tailored not just to support existing operations but also to empower businesses intending to start within the province, thereby encouraging entrepreneurial ventures and regional economic growth. The careful alignment of repayment schedules with cash flow realities aids in safeguarding businesses against the pitfalls of over-leveraging while promoting sustainable expansion.
In essence, this financial support framework is reflective of a comprehensive understanding of the manufacturing and processing sectors, focusing on enhancing operational resilience, facilitating growth, and fostering innovation within Prince Edward Island's economic landscape. By providing a well-rounded suite of financial products, Finance PEI positions itself as a pivotal partner for businesses navigating the challenges and opportunities within these critical industries.
