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
- Finance PEI
- Government of Prince Edward Island
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
The grant offers funding for specific purposes to support small businesses and entrepreneurs in Prince Edward Island.
- Purchase and/or acquisition of business
- Business expansion
- New construction
grant_single|admissibleProjectsExample
$200,000
Summerside
Construction of a new organic food store
$100,000
Stratford
Expansion of a tech startup's office and purchase of new equipment
$200,000
Montague
Expansion of a local dairy farm with new machinery
$150,000
Charlottetown
Acquisition of a local bakery business with plans for expansion
$300,000
Summerside
Launching a new regional craft brewery
$225,000
Kensington
Acquisition and renovation of a historic inn
grant_single_labels|admissibility
This grant supports small businesses and entrepreneurs in Prince Edward Island for purchasing or acquiring businesses, expansion, and new construction. It does not provide working capital and has specific conditions for loan repayments and asset utilization.
- Carries on business, or intends to carry on business, in the province
- Purchases a finished product from a supplier and resells that product without alteration
- Does not employ more than 100 people
- Did not have 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 grant is available for small businesses and entrepreneurs in Prince Edward Island who meet specific criteria. These companies can benefit from loans for purposes such as business acquisition, expansion, and new construction.
- Must carry on business or intend to carry on business in Prince Edward Island
- Purchases a finished product from a supplier and resells that product without alteration
- Employs no more than 100 people
- Did not have annual gross sales exceeding $10 million in the fiscal year immediately after an application
grant_eligibility_criteria|who_cannot_apply
There are specific types of companies that are not eligible for this grant.
- Businesses requiring working capital for operating purposes
- Vehicles that do not directly contribute to the business’s income or sales
- Development or construction of retail malls without a major tenant that is an owner/operator of one of the retail outlets
- Non-capital components of franchised operations, including goodwill and franchise fees
grant_eligibility_criteria|eligible_expenses
The eligible expenses for this grant are expenses related to the purchase and/or acquisition of business, expansion, and new construction. These include machinery, equipment, real property, and buildings or other capital nature purchases.
- Machinery
- Equipment
- Real property
- Buildings
- Vehicles that directly contribute to the business's income or sales
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is Prince Edward Island.
- Prince Edward Island
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: Determine Eligibility
- Ensure that your business meets the criteria for a small business as outlined in the grant details.
- Verify that the purpose of the loan aligns with eligible uses, such as the purchase/acquisition of business assets, expansion, or new construction.
- Step 2: Prepare Documentation
- Gather necessary financial documents, such as business plans, financial statements, and sales records.
- Prepare any additional documentation that may support your application (e.g., quotes for machinery or equipment).
- Step 3: Complete Application Form
- Fill out the application form provided by Finance PEI accurately and completely.
- Step 4: Submit Application
- Submit the completed application form along with all required documentation to Finance PEI.
- Ensure that you meet any specific submission deadlines or requirements.
- Step 5: Await Response
- After submission, wait for Finance PEI to review your application.
- Be prepared to provide additional information or clarification if requested.
- Step 6: Receive Funding Decision
- Receive notification of the decision regarding your loan application.
- If approved, proceed with complying with any terms and conditions set forth by Finance PEI.
grant_single_labels|otherInfo
The grant is intended to assist small businesses in Prince Edward Island with various capital acquisition needs while providing specific terms and conditions for repayment.
- Loans are not available for working capital.
- For retail mall developments, the borrower must be a major tenant and owner/operator of one of the outlets.
- Franchised operations can borrow for capital asset components but not for non-capital assets like goodwill or franchise fees.
- Intermediate term loans have a maximum repayment period of 10 years.
- Long term loans have flexible repayment options, secured typically by a lien on the property, with a maximum term of 20 years.
- The loan limit generally does not exceed 80% of the fair market value or purchase price.
Apply to this program
Prince Edward Island Small Business Assistance Program Summary
The Prince Edward Island Small Business Assistance Program offers financial support to small businesses and entrepreneurs for the acquisition, expansion, and construction of business assets. The program provides intermediate and long-term loans primarily for capital asset purchases, excluding working capital and non-income generating vehicles.
Detailed Overview of the Prince Edward Island Small Business Assistance Program
The Prince Edward Island Small Business Assistance Program is a cornerstone initiative aimed at fostering the growth and development of small businesses in the province. This program specifically addresses the financial needs that many burgeoning entrepreneurs and small enterprises face, such as acquiring new assets, expanding existing operations, or undertaking new construction projects. It’s essential to understand the nuances of this program to make the most of the opportunities it offers. Below is a detailed examination of the program, its eligibility criteria, and how it can benefit your business.
Purpose and Scope
The primary goal of the Prince Edward Island Small Business Assistance Program is to provide financial support for: - The purchase and/or acquisition of a business, - Business expansion, - New construction. Notably, the program does not extend to providing working capital for operating purposes. Instead, it focuses on long-term asset purchases that will contribute to the growth and sustainability of the business.
Eligibility Criteria
To qualify for this program, businesses must meet the following conditions: - Operate or plan to operate in Prince Edward Island, - Engage in the purchase and resale of finished products without alteration, - Employ no more than 100 people, - Have annual gross sales of less than $10 million in the fiscal year immediately before applying. These criteria ensure that the program targets small businesses that can significantly benefit from the financial assistance this program offers.
Eligible Uses of the Loan
The loans provided under this program can be used for various capital asset purchases, including: - Machinery, - Equipment, - Real property, - Buildings, Certain conditions apply depending on the loan's purpose: - Loans for retail mall development or construction may only be considered if the borrower also operates one of the retail outlets in the mall and is a major tenant. - Franchised operations can borrow for their capital asset components but not for non-capital assets like goodwill or franchise fees.
Types of Loans
The program offers two main types of loans:
Intermediate Term Loan
Intermediate term loans are tailored for the purchase of machinery, equipment, or other acquisitions of a capital nature. These loans are ideally structured to align with the expected lifespan of the asset being financed, with a maximum term of up to 10 years. It’s important to note that: - Vehicles that do not directly contribute to the business’s income or sales are not eligible.
Long Term Loan
Long term loans offer a more extended repayment period, with a maximum term of up to 20 years. These loans are primarily intended for purchasing or refurbishing capital assets, and in some scenarios, for debt restructuring. The flexibility in repayment options is designed to match the business's cash flow. Key conditions include: - The loan limit usually will not exceed 80% of the lesser of the fair market value or purchase price of the asset. - These loans are typically secured by a lien on the property, though alternate security options may be considered.
Repayment Terms
The repayment period of each loan type must correspond with the asset's expected life being financed: - Intermediate term loans should not exceed 10 years. - Long term loans can extend up to 20 years. The structure of repayments is made to ensure that businesses can manage their cash flow effectively while repaying the loan. Flexible repayment options are a significant advantage for businesses that need time to generate sufficient revenue from the new assets.
Application Process
Applying for the Prince Edward Island Small Business Assistance Program involves several steps: 1. **Initial Consultation:** Businesses should engage in an initial consultation with financing officers to discuss eligibility and match the appropriate loan type to their needs. 2. **Documentation:** Applicants must submit detailed documentation, including: - Business plan, - Financial statements, - Projections, - Details of the asset(s) being financed. 3. **Assessment:** The application will undergo a thorough assessment by the financing body to ensure compliance with program criteria and evaluate the business's ability to repay the loan. 4. **Approval and Disbursement:** Once approved, the loan amount will be disbursed, and the business can proceed with their planned asset acquisition or expansion.
Benefits to Small Businesses
The Prince Edward Island Small Business Assistance Program offers numerous benefits to small businesses, such as: - **Access to Capital:** Provides much-needed funding to purchase capital assets, which may be challenging to secure through other means. - **Enhanced Growth:** Allows businesses to expand their operations, acquire new machinery or property, and undertake construction projects, thereby boosting overall productivity. - **Flexible Repayment:** The flexible repayment terms are structured to align with the business's revenue generation, reducing financial strain. - **Asset Building:** Investments in machinery, equipment, and property contribute to long-term asset building, enhancing the business's overall value and market position.
Conclusion
The Prince Edward Island Small Business Assistance Program is a vital support mechanism designed to empower small businesses and entrepreneurs within the province. By focusing on capital asset financing rather than working capital, the program ensures that businesses have the necessary physical tools to grow, innovate, and compete effectively in their respective markets. For small businesses looking to expand, acquire significant assets, or undertake new construction projects, this program offers an invaluable financial lifeline with practical, manageable repayment terms. Businesses that meet the eligibility criteria are advised to explore this opportunity and leverage the program's benefits to fuel their growth and long-term success. This comprehensive understanding of the Prince Edward Island Small Business Assistance Program outlines its significance, how to qualify, eligible loan purposes, types of loans, and the overall process involved. Small businesses in the province should consider this program as a critical resource for achieving their growth objectives.