Small Business Assistance
PE, Canada
Loan for Prince Edward Island (PEI) businesses to acquire, expand, manage debt or build retail malls
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
- grant_single|allIndustries
grant_single|grantors
- Government of Prince Edward Island
- Finance PEI
grant_single|status
grant_card_status|open
grant_single_labels|preview
Use this term loan to finance the acquisition of a business, expand, consolidate debt or construct a new mall.
grant_single_labels|projects
This program is specifically tailored for businesses operating in Prince Edward Island, Canada. Companies need to be within this province to qualify for the financial assistance provided.
- Businesses operating in Prince Edward Island.
grant_single|admissibleProjectsExample
$200,000
Construction of a new organic food store
$100,000
Expansion of a tech startup's office and purchase of new equipment
$200,000
Expansion of a local dairy farm with new machinery
$150,000
Acquisition of a local bakery business with plans for expansion
$300,000
Launching a new regional craft brewery
$225,000
Acquisition and renovation of a historic inn
grant_single_labels|admissibility
Eligibility for this small business assistance program is determined by specific requirements related to the business’s profile and activities.
- The applicant must carry on or intend to carry on business in the province of Prince Edward Island.
- The business must purchase a finished product from a supplier and resell it without alteration.
- The business must not employ more than 100 people.
- The business must not have had annual gross sales exceeding $10 million in the fiscal year immediately after an application made following section 9 of the Act.
grant_eligibility_criteria|who_can_apply
This loan program is specifically intended for small businesses and entrepreneurs operating in Prince Edward Island, Canada. Eligible applicants include those who are carrying on or intend to carry on a business within the province, and who purchase and resell products without altering them. The business must employ no more than 100 individuals and should not have annual gross sales exceeding $10 million in the fiscal year following the application. These loans are available for the purchase and acquisition of business assets, expansion, and new construction, excluding non-capital expenses such as working capital, goodwill, or franchise fees.
grant_eligibility_criteria|who_cannot_apply
Based on the provided context, the grant excludes certain vehicles and non-capital components from eligibility. However, explicit restrictions regarding specific types of companies or industries are not detailed in the provided information.
- Vehicles that do not directly contribute to the business’s income or sales are not eligible.
- Non-capital components such as goodwill and franchise fees are not eligible for financing.
grant_eligibility_criteria|eligible_expenses
This grant program focuses on the capital needs of Prince Edward Island's small businesses, supporting growth and expansion efforts through asset acquisition. The initiative is tailored to assist in acquiring significant business-related assets, thereby facilitating business growth in the province.
- Purchase and/or acquisition of existing businesses, allowing for the continuation or expansion under new ownership.
- Expansion of current business operations through the acquisition of new machinery or equipment.
- New construction projects aimed at business growth or establishment in the province.
- Refurbishment or acquisition of real property or buildings to enhance business capabilities.
grant_eligibility_criteria|zone
This small business assistance program covers expenses related to the acquisition and improvement of capital assets.
- Purchase and/or acquisition of businesses.
- Expansion-related capital expenses.
- New construction projects.
- Purchase of machinery and equipment directly contributing to business operations.
- Real property and building acquisitions and refurbishments.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant, which are designed to ensure the funds are allocated to businesses that meet specific requirements and align with the program's objectives.
- The business must carry on, or intend to carry on, operations in Prince Edward Island.
- Purchases or acquires finished products from suppliers without alteration.
- Employs no more than 100 people.
- Did not have annual gross sales exceeding $10 million in the fiscal year immediately following an application made under section 9 of the Act.
- Loan does not provide working capital for operating purposes.
- Loans for retail malls are considered only if the borrower is a major tenant and operates a retail outlet in the proposed mall.
- Franchised operations can borrow for capital asset components but not for non-capital assets such as goodwill or franchise fees.
- Loans should coincide with the expected life of the asset being financed, with intermediate-term loans not exceeding 10 years and long-term loans not exceeding 20 years.
- Secured by lien on the property, with a loan limit not generally exceeding 80% of the fair market value or purchase price, whichever is less.
grant_single_labels|register
- Step 1: Preliminary Research
- Review the eligibility criteria to ensure your business qualifies for the program.
- Understand the types of expenditures covered under the loan scheme.
- Step 2: Gather Necessary Documentation
- Prepare financial statements and business plans to support your application.
- Gather proof of business operations in Prince Edward Island and details of business acquisitions or expansions.
- Step 3: Complete Application Form
- Access and fill out the application form from Finance PEI's official website or contact their office for assistance.
- Provide detailed information about the business and the purpose of the loan.
- Step 4: Submit Application
- Submit the completed application form along with all required supporting documentation.
- Ensure submission is within the stipulated deadline.
- Step 5: Application Review
- Await feedback from Finance PEI regarding the status of your application.
- Step 6: Loan Agreement
- If approved, review and sign the loan agreement terms provided by Finance PEI.
- Discuss and confirm the repayment schedule and transfer of funds.
grant_single_labels|otherInfo
Additional information relevant to the loan program includes:
- The loans are designed with flexible repayment options that can match the business's cash flow, providing potential applicants with repayment ease.
- Security for the loan is typically required, often in the form of a lien on the property, although alternate forms of security may be considered in certain cases.
- The maximum loan amount generally does not exceed 80% of the fair market value or purchase price of the asset being financed, whichever is less.
- Franchised operations can specifically apply for capital asset components, but non-capital components like goodwill and franchise fees are not eligible for loan financing.
Apply to this program
Empowering Small Businesses in Prince Edward Island
The Small Business Assistance program on Prince Edward Island offers financial support specifically engineered for small businesses aiming to acquire property, expand operations, or initiate new construction. This program excludes working capital loans, streamlining its focus on long-term, asset-based investments.
Diving Into the Details of Prince Edward Island's Small Business Aid
The Small Business Assistance program in Prince Edward Island is a strategic financial support initiative tailored to meet the distinctive needs of the region's small business community. As a deliberate measure, the program provides loans strictly for purchasing or acquiring businesses, expanding existing operations, or new construction ventures. These loans are available to businesses that meet certain criteria, notably the employment of fewer than 100 people or having had gross sales under $10 million in the applicable fiscal year right after an application is filed.
Designed to facilitate significant investments in capital assets rather than day-to-day operational expenditures, the program ensures that the repayment duration aligns with the lifespan of the purchased asset. Importantly, the maximum term for the loan repayment does not exceed 20 years. For intermediate term loans, which might be utilized for the acquisition of machinery or other critical equipment, the repayment period is capped at 10 years. This extended timeline offers businesses the flexibility to spread their financial commitment in alignment with their income generated from the assets.
Businesses might consider these loans for a variety of capital expenditure purposes. From purchasing machinery and equipment to outright acquisition of real property and buildings, the program caters to a wide range of asset-based funding needs. However, it excludes vehicles not directly contributing to the enterprise's income streams.
In situations where a small business seeks to become a tenant in a retail mall, the program does offer consideration provided the business maintains a presence in the mall as a major tenant. Franchise businesses also find eligibility under this plan but solely for capital asset expenditures; non-capital expenses like franchise fees are not fundable. This ensures that the businesses borrowing for specific growth projects have sustainable and productive utilizations of the funds.
Notably, this program underscores security as a core-condition; typically requiring a lien on the purchased property. However, in specific cases, alternative security might be considered, further emphasizing the flexible and accommodating nature of the initiative. The amount businesses can borrow is also regulated to not exceed 80% of the fair market value or the purchase price of the asset, whichever is less, ensuring both the business and the program's investment remain financially sound.
This robust funding mechanism provided by Prince Edward Island institutions is pivotal for empowering local small businesses, fulfilling asset-based expansion aspirations and stimulating economic growth by leveraging strategic capital investments. By ensuring a meticulous allocation towards durable business investments, this program not only supports immediate business scaling but also contributes to the broader regional economic resilience. Business owners are encouraged to leverage this support to optimize their capital asset portfolios and embed a stable financial foundation for long-term success.
