How much funding can be received?

Funds up to 80% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Manufacturing and Processing Assistance - Operating Loan?

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

What are Manufacturing and Processing Assistance - Operating Loan's eligibility criterias?

The business must operate or intend to operate in the province. The business must produce a product by mechanical method from a raw material that is altered to add value.

Manufacturing and Processing Assistance - Operating Loan

grant_single|update January 24, 2025

PE, Canada

Loan to purchase inventory or for day-to-day operating costs in Prince Edward Island

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grant_single|eligibleFinancing

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grant_single|financingType

Loans and Capital investments

grant_single|eligibleIndustries

Manufacturing

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Government of Prince Edward Island
Finance PEI

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Use this term loan to finance up to 100% of inventory purchases and day-to-day business operating costs.

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This funding offer from Finance PEI provides a range of loan options to support the financing needs of businesses engaged in manufacturing and processing within the province. The modalities are designed to provide both capital and operational financial support tailored to the business's cash flow and asset value.

Capital Loans are available for the purchase or refurbishment of capital assets with a maximum loan term of 20 years, secured by a first charge on real property or the financed asset.
Intermediate Term Loans offer repayment terms up to 10 years, tailored to the expected life of improvements made to business assets, excluding non-contributing vehicles.
Operating Loans provide up to 100% financing for inventory and daily operational costs, repaid through the sale of inventory.
Flexible repayment options are aligned with the business’s cash flow for capital loans.
Maximum financing typically does not exceed 80% of the fair market value or purchase price of the capital assets, although up to 100% is available for inventory purchases.

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Eligible projects for this grant focus on enabling manufacturing and processing businesses to invest in essential areas to advance their operations. These initiatives aim at improving the capacity and operational efficiency of businesses within the province.

Purchase of land and buildings necessary for business operations.
Acquisition of specialized equipment to enhance production capabilities.
Purchase of production inventory to maintain product flow.
Financing day-to-day operating costs through the purchase of inventory and management of accounts receivables.

grant_single|admissibleProjectsExample

$ 45,000

Procurement of high-quality grains and covering operational expenses for a local bakery

$ 60,000

Expanding stock of local produce and managing daily expenses for a cooperative grocery store

$ 110,000

Acquisition of raw materials for a local furniture production company and enhancement of operational efficiency

$ 125,000

Upgrading medical supplies inventory and covering operating expenses for a community health center

$ 75,000

Purchase and stocking of new inventory for the bookstore and improvement of daily operations

$ 90,000

Increasing the stock of eco-friendly products and maintaining operational costs for a sustainable clothing store

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To be eligible for this grant, companies must meet certain criteria related to their business operations and financial needs.

The company must carry on or intend to carry on business in the province.
The company must 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

Eligible applicants for the Manufacturing and Processing Assistance include individuals or entities that operate or intend to operate a business in Prince Edward Island, producing a product by mechanical means from raw materials that are altered to add value.

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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

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The grant provides support for businesses engaged in manufacturing and processing activities, particularly in acquiring or improving assets necessary for operation and growth. Projects eligible for this grant include acquisitions and enhancements of vital resources that contribute to the production process.

Purchase of land and buildings for expanding or establishing manufacturing and processing facilities.
Acquisition and refurbishment of specialized equipment used in the manufacturing process.
Inventory purchases necessary for production continuity and operational flow.
Debt restructuring related to capital asset enhancements.

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This grant is focused on supporting manufacturing and processing businesses operating within a particular region. While it emphasizes the province in its guidelines, specific geographical areas are not explicitly mentioned.

Businesses carrying on or intending to carry on business in the province.

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Consider the following additional relevant information for applicants:

The interest rates for loans may vary based on the asset being financed and the overall risk profile of the business.
Applicants may need to provide a detailed business plan that outlines their operational cash flow and repayment ability.
In some cases, businesses must demonstrate a certain level of local economic impact or job creation potential as part of the loan approval process.
Collateral or security may be required for the loan, and its adequacy will be assessed by Finance PEI.