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

Last Update: July 22, 2025

PE, Canada

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

Manufacturing and Processing Assistance - Operating Loan at a glance

Eligible Funding

Up to 80% of project cost

Timeline

Unspecified

Financing Type

Loans and Capital investments

Eligible Industries

Manufacturing

Grant Providers

Government of Prince Edward Island
Finance PEI

Program status

Open

Overview of the Manufacturing and Processing Assistance - Operating Loan program

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

Financing terms and conditions

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.

Eligible projects & activities

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.

Examples of admissible projects:

$ 45,000

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

$ 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

$ 60,000

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

$ 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

Eligibility criteria of the Manufacturing and Processing Assistance - Operating Loan program

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.

Who is eligible?

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.

Who is not eligible

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

Eligible expenses

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.

Eligible geographic areas

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.

How to apply to the Manufacturing and Processing Assistance - Operating Loan program

Determine Eligibility

Review the eligibility criteria to ensure your business qualifies for the grant.
Ensure your operations are based in the province and involve manufacturing and processing.

Understand Loan Options

Evaluate whether a capital loan, intermediate-term loan, or operating loan suits your business needs.
Consider the repayment terms and security requirements for each loan type.

Gather Necessary Documentation

Prepare documents that may include business financial statements, cash flow projections, and proof of purchase agreements.
Collect documentation related to the assets being financed such as valuations or purchase contracts.

Prepare the Loan Application

Complete the relevant application form provided by Finance PEI.
Ensure all sections are filled out accurately and thoroughly.

Submit Application

Submit the completed application and supporting documents to Finance PEI.
Follow the instructions for submission, which may include online or physical delivery options.

Follow Up

Receive confirmation from Finance PEI once the application is received.
Maintain communication for any additional information requests or updates on your application status.

Additional information

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.

Apply to this program

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