Small Business Assistance

Q: How much funding can be received?

Small Business Assistance Funds up to 80% of admissible expenses.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Small Business Assistance a grant, loan, or tax credit?

Small Business Assistance is a Loans and Capital investments

Q: Who are the financial supporters of the Small Business Assistance?

Small Business Assistance is funded by Government of Prince Edward Island, Finance PEI

Q: Who is eligible for the Small Business Assistance program?

To be eligible for the Small Business Assistance program, you must: • Must carry on business, or intend to carry on business, in Prince Edward Island. • Must not employ more than 100 people. • Must not have had annual gross sales exceeding $10 million in the fiscal year immediately following the application as per section 9 of the Act.

Q: Who can I contact for more information about the Small Business Assistance?

You can contact Government of Prince Edward Island.

Q: Where is the Small Business Assistance available?

The Small Business Assistance program is available the province of PE.

Q: Are startups eligible for the Small Business Assistance program?

Yes, startups are eligible to apply for the Small Business Assistance program.

Last Update: July 22, 2025

PE, Canada

Loan for Prince Edward Island (PEI) businesses to acquire, expand, manage debt or build retail malls

At a glance

Eligible Funding

Up to 80% of project cost

Timeline

Unspecified

Financing Type

Loans and Capital investments

Eligible Industries

All industries

Funds Providers

Unspecified

Program status

Open

Overview

Use this term loan to finance the acquisition of a business, expand, consolidate debt or construct a new mall.

Financing terms and conditions

This grant offers financing options specifically tailored for capital asset investments and debt restructuring, designed to support the growth and expansion of small businesses. The modalities are structured to align repayment with the useful life of the purchased assets, with flexible security options.

Intermediate term loans with a repayment term that aligns with the expected life of the asset, not exceeding 10 years.
Long term capital loans available for up to 20 years, contingent on the asset's life.
Repayment structures that match the business’s cash flow requirements, offering flexibility.
Loans secured typically by a lien on the property, but alternate security options may be considered in certain cases.
Loan amounts generally capped at 80% of the lesser of fair market value or purchase price of the asset.

Activities funded

This grant is tailored to support small businesses in Prince Edward Island with their capital asset needs, focusing on essential investments to enhance operational capabilities. The eligible projects are centered around acquiring or expanding assets that contribute directly to the business’s function and growth.

Purchase and/or acquisition of an existing business.
Expansion of current business operations through capital investments.
New construction projects for business infrastructure.
Purchase of machinery and equipment essential for business operations.
Acquisition of real property and buildings for business use.
Refurbishment of existing capital assets critical to business activities.
Debt restructuring related to capital investments.

Examples of admissible projects:

$ 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

Eligibility

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.

Who is eligible?

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.

Who is not eligible

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.

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.

Eligible geographic areas

This grant is specifically designed for businesses operating within Prince Edward Island. Eligible geographical areas are confined to those actively engaged or planning to engage in business activities within the province.

Businesses carrying on, or intending to carry on, business in Prince Edward Island.

Selection 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.

How to apply

Preliminary Research

Review the eligibility criteria to ensure your business qualifies for the program.
Understand the types of expenditures covered under the loan scheme.

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.

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.

Submit Application

Submit the completed application form along with all required supporting documentation.
Ensure submission is within the stipulated deadline.

Application Review

Await feedback from Finance PEI regarding the status of your application.

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.

Additional information

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

Frequently Asked Questions about the Small Business Assistance Program

Here are answers to the most common questions about the Small Business Assistance. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.