Manufacturing and Processing Assistance - Operating Loan
PE, Canada
Loan to purchase inventory or for day-to-day operating costs in Prince Edward Island
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Finance PEI
- Government of Prince Edward Island
grant_single|status
grant_card_status|open
grant_single_labels|preview
Use this term loan to finance up to 100% of inventory purchases and day-to-day business operating costs.
grant_single_labels|projects
Eligible projects or activities for the Manufacturing and Processing Assistance Grant include purchasing and refurbishing capital assets, and managing specific operational costs. These activities are aligned with enhancing the manufacturing process and improving business operations.
- Purchasing land and buildings for business operations
- Acquiring specialized equipment for production
- Purchasing production inventory
- Refurbishing capital assets
- Debt restructuring for improved financial management
- Covering day-to-day operating costs with an operating loan
grant_single|admissibleProjectsExample
$45,000
Calgary
Procurement of high-quality grains and covering operational expenses for a local bakery
$60,000
Halifax
Expanding stock of local produce and managing daily expenses for a cooperative grocery store
$110,000
Montreal
Acquisition of raw materials for a local furniture production company and enhancement of operational efficiency
$125,000
Vancouver
Upgrading medical supplies inventory and covering operating expenses for a community health center
$75,000
Toronto
Purchase and stocking of new inventory for the bookstore and improvement of daily operations
$90,000
Ottawa
Increasing the stock of eco-friendly products and maintaining operational costs for a sustainable clothing store
grant_single_labels|admissibility
To qualify for the Manufacturing and Processing Assistance grant, a company must meet the following eligibility criteria:
- Carry on business, or intend to carry on business, in the province.
- Operate a business that produces a product by mechanical method from a raw material that is altered to add value.
grant_eligibility_criteria|who_can_apply
The grant is available for businesses in the manufacturing and processing industry that operate in the province. Eligible companies must produce products by mechanical methods from raw materials that are altered to add value.
- Business carries on or intends to carry on in the province
- Operates a business that produces a product by mechanical method
- The product is created from a raw material that is altered to add value
grant_eligibility_criteria|who_cannot_apply
Some types of companies are not eligible for this grant. Eligibility criteria may exclude companies involved in industries such as tobacco, gambling, or adult entertainment.
- Tobacco industry
- Gambling industry
- Adult entertainment industry
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include the purchase and/or refurbishment of capital assets, and in some cases, inventory purchases and operating costs.
- Land and buildings
- Specialized equipment
- Production inventory
- Refurbishment of capital assets
- Debt restructuring related to capital assets
- Day-to-day operating costs
- Purchasing inventory
grant_eligibility_criteria|zone
Companies eligible for this grant must be carrying on business, or intend to carry on business, in the province of Prince Edward Island, Canada. The grant is specific to businesses operating within this geographical area.
- Prince Edward Island, Canada
Apply to this program
Unlock Business Growth with Manufacturing and Processing Assistance
The Manufacturing and Processing Assistance Grant offers vital financial support to businesses in Prince Edward Island that produce goods through mechanical methods, aiding in capital asset purchases and operating costs to boost economic development. Eligible businesses can secure term loans, capital loans, intermediate loans, and operating loans, ensuring growth through well-structured financial backing.
Comprehensive Financial Backing for PEI Businesses: An Overview of the Manufacturing and Processing Assistance Grant
In Prince Edward Island, the Manufacturing and Processing Assistance Grant serves as a cornerstone for strengthening local businesses, particularly those in the manufacturing and processing sector. This initiative is designed to propel businesses forward by providing strategic financial support, offering various loan options tailored to different business needs. Whether a company is looking to expand its physical footprint, enhance its production capacity, or manage day-to-day expenses more effectively, this grant presents an appealing financial pathway.
The grant is centered around providing term loans with a dual focus: capital assets acquisition and operational sustainability. For companies that require capital for purchasing land, buildings, or specialized equipment, capital loans serve as a crucial tool. These loans are formulated to align with the longevity of the assets, offering amortization over the asset's expected life span and a maximum repayment term of 20 years. This ensures businesses can manage repayments conveniently, in harmony with their cash flow dynamics. Significantly, the loans cover up to 80 percent of the fair market value or purchase price, providing substantial financial leverage to the businesses.
In addition to capital loans, the Manufacturing and Processing Assistance Grant includes an intermediate term loan option. This offers businesses the flexibility needed to improve existing assets without incurring excessive financial strain. Typically capped at a 10-year repayment term, these loans are invaluable for businesses seeking to innovate and refine their processes while maintaining economic steadiness. Importantly, this loan option excludes vehicles unless directly contributing to business sales or income, ensuring that the funding supports productivity enhancements directly.
Moreover, the grant makes provisions for operating loans aimed at facilitating the purchase of inventory and managing everyday operational expenses. With potential 100 percent financing, these loans are tied tightly to cash flow projections, meaning that repayment stems naturally from inventory sales. This feature is particularly beneficial for businesses seeking to streamline operations and improve financial forecasting with the assurance of having resources at hand for immediate requisites.
The Manufacturing and Processing Assistance program, as outlined, not only supports business with their present requirements but also strategically positions them for long-term growth and sustainability. By financing businesses up to 80 percent for capital assets and allowing up to full coverage for inventory and operational costs, the grant reduces financial burdens, enabling companies to allocate resources more efficiently. This in turn supports their growth trajectories, contributing toward Prince Edward Island’s broader economic landscape by adding value in every sector engaged.
The holistic approach of the grant, addressing different spheres of business financing needs—from purchasing tangible assets to assuring liquidity for ongoing operations—demonstrates its role as a vital driver for business development. It ensures businesses do not merely survive the financial demands of today but thrive by future-proofing their operations. With an array of flexible repayment terms and substantial loan coverage windows, businesses are empowered to maintain a focus on excellence and innovation, ultimately pushing the boundaries of what's possible within their sectors.
The Manufacturing and Processing Assistance Grant crystallizes the commitment of Finance PEI to foster an environment of sustained economic growth through meticulous financial stewardship. It's an invitation to businesses across the province to harness these financial tools for gainful expansions and innovations, ensuring that Prince Edward Island continues to evolve as a vibrant and competitive economic hub. Whether you're a new business stepping into the manufacturing domain or an established entity seeking strategic enhancement, this grant offers the assistance you need to accomplish your financial and operational goals.