Tourism Financing Assistance - Long Term Loan
PE, Canada
Loans for Prince Edward Island (PEI) tourism businesses
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJanuary 25, 2024
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
Financial support to help tourism-related businesses across a range of activities, including acquisition, expansion, debt consolidation, and repairing restaurants, accommodations and equipment.
grant_single_labels|projects
Projects eligible for this grant include the establishment, expansion, and refurbishment of tourism facilities, with a focus on extending the tourist season and providing greater incentives for off-Island guests to visit Prince Edward Island.
- Purchase of businesses
- Expansion of existing tourism operations
- New construction
- Repair or updating of fixed assets
- Purchase of machinery and equipment
- Real property and buildings
- Recreational complexes including entertainment facilities and lodging
- Conversion of accommodation units to other uses during off-season periods
- Establishment of restaurants
- Development of accommodations with at least three lodging units
- Creation of recreational activities and attractions
grant_single|admissibleProjectsExample
$250,000
Stratford
Conversion of an old farmhouse into a bed and breakfast with local cuisine
$80,000
Summerside
Update and refurbishment of heritage museum for improved visitor experience
$250,000
Cavendish
Construction of eco-friendly cabins for sustainable tourism in a nature reserve
$200,000
Charlottetown
Expansion of boutique hotel to include an on-site spa and wellness center
$200,000
Montague
Development of an adventure park with zip lining and climbing facilities
$180,000
Kensington
Renovation of a historic theater to create a year-round performing arts venue
grant_single_labels|admissibility
The grant is designed to meet the needs of Prince Edward Island tourism operators for purposes such as business expansion, new construction, and fixed asset updates. Eligibility includes carrying on a business in the province and holding a valid tourism establishment license, among other criteria.
- Carries on business, or intends to carry on business, in Prince Edward Island
- Holds a valid tourism establishment license issued pursuant to the Tourism Industry Act Regulations
- Projects must aim to achieve a minimum two and one half (2½) star rating under the Canada Select Accommodation Rating Program upon completion
- Accommodation operations require a minimum of three lodging units, once complete, to qualify for capital financing
- Loans shall not generally exceed 80 per cent of the fair market value or purchase price of the asset(s) being financed
- The amortization period must coincide with the expected life of the asset being financed and not exceed 20 years
- Vehicles that do not directly contribute to the business's income or sales are not eligible
- Bed and breakfast operations, as defined by the Tourism Industry Act Regulations, are not eligible
grant_eligibility_criteria|who_can_apply
Yes, the grant is available for tourism operators in Prince Edward Island who meet specific criteria. Here are the eligible types of companies:
- Companies carrying on or intending to carry on business in Prince Edward Island
- Businesses other than bed & breakfast establishments, as defined by the Tourism Industry Act Regulations
- Operations that have a valid tourism establishment license under the Tourism Industry Act Regulations
- Projects that expand the tourist season and provide greater incentives to off-Island guests
- Accommodation operations with a minimum of three lodging units once complete
grant_eligibility_criteria|who_cannot_apply
There are specific types of companies that are not eligible for this grant.
- Bed and breakfast operations, as defined by the Tourism Industry Act Regulations
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include the purchase and improvement of various capital assets for tourism-related businesses, as well as specific operating and intermediate term expenses.
- Purchase of business
- Expansion and new construction
- Repair or updating of fixed assets
- Machinery and equipment
- Real property and buildings
- Other items of a capital nature
- Operating capital for seasonal start up
- Refurbishment of tourism facilities
- Debt restructuring for tourism facilities
- Intermediate term improvements (excluding non-income-generating vehicles)
grant_eligibility_criteria|zone
The grant is specifically designed for tourism operators operating or intending to operate in the province of Prince Edward Island.
- Prince Edward Island (PEI)
grant_single_labels|criteria
The evaluation and selection criteria for the Tourism Financing Assistance program are focused on the project's ability to meet specific conditions and restrictions. These criteria ensure the projects align with the goals of enhancing and extending the tourism season in Prince Edward Island.
- Project must expand the tourist season, with special encouragement for recreational complexes featuring entertainment facilities, lodging, and dining.
- The project must achieve a minimum two and one-half (2½) star rating under the Canada Select Accommodation Rating Program upon completion.
- Accommodation operations require a minimum of three lodging units, once complete, to qualify for capital financing.
- Loans shall not generally exceed 80 per cent of the fair market value or purchase price of the asset(s) being financed, and not exceed a period of 20 years.
- Intermediate-term loans will not exceed 10 years and should coincide with the expected life of the asset being financed.
- Vehicles that do not directly contribute to the business's income or sales are not eligible for financing.
grant_single_labels|register
- Step 1: Ensure Eligibility
- Confirm that your business operates within Prince Edward Island.
- Verify that your business holds a valid tourism establishment license as per the Tourism Industry Act Regulations.
- Step 2: Determine Loan Type
- Identify the purpose of the loan, such as purchase of business, expansion, new construction, or updating fixed assets.
- Ensure your project meets other conditions, such as achieving a minimum 2½ star rating under the Canada Select Accommodation Rating Program upon completion.
- Step 3: Prepare Required Documentation
- Prepare a detailed business plan outlining the project, its benefits, and how it will extend the tourist season or improve tourism facilities.
- Collect financial statements or documentation demonstrating the financial health of your business.
- Step 4: Contact Finance PEI
- Reach out to Finance PEI for consultation on your project and to understand the specific loan terms and conditions that apply.
- Phone: 902-368-6200
- Email: financepei@gov.pe.ca
- Step 5: Submit Application
- Complete the formal loan application form available through Finance PEI.
- Include all necessary supporting documents as requested by Finance PEI.
- Step 6: Await Approval
- Finance PEI will review your application and may request further information or clarification.
- Await a decision on your application.
- Step 7: Finalize Loan Agreement
- If approved, review the loan terms and conditions provided by Finance PEI.
- Sign the loan agreement and fulfill any initial requirements or conditions set by Finance PEI.
- Step 8: Implement Project
- Use the funds as specified in your loan agreement to complete your project.
- Ensure all project goals and requirements are met, including the Canada Select Accommodation Rating Program's 2½ star rating if applicable.
grant_single_labels|otherInfo
This grant offers a range of financial assistance options specifically tailored to meet the needs of tourism operators in Prince Edward Island, with a focus on capital expenditures, seasonal business improvements, and projects promoting off-season tourism.
- Projects must have a minimum two and one-half (2½) star rating under the Canada Select Accommodation Rating Program upon completion.
- Bed and breakfast operations are ineligible for borrowing from Finance PEI.
- Accommodation operations need a minimum of three lodging units to qualify for capital financing.
- Loans generally cover up to 80% of the fair market value or purchase price of the asset being financed, with a maximum period of 20 years.
- Intermediate term loans are limited to a maximum of 10 years.
- Operating loans can provide up to 100% financing for pre-season preparation of tourist facilities.
grant_single_labels|contact
financepei@gov.pe.ca
902-368-6200
Apply to this program
Tourism Financing Assistance Program in Prince Edward Island
The Tourism Financing Assistance program by Finance PEI supports tourism operators in Prince Edward Island through various loans aimed at business purchase, expansion, new construction, and asset updates, with specific conditions and restrictions in place. Projects that aim to extend the tourist season are particularly encouraged, offering long-term, intermediate-term, and operating loans.
Detailed Explanation of the Tourism Financing Assistance Program
The Tourism Financing Assistance program, managed by Finance PEI, is designed to address the tailored needs of tourism operators within Prince Edward Island. This targeted financial assistance is intended to support various essential activities, including the purchase of businesses, infrastructure expansion, new construction projects, and the repair or updating of fixed assets. Understanding the intricacies and specifics of this grant can significantly benefit tourism operators aiming to stay competitive and elevate the standard of their offerings.
Program Overview and Eligibility
The primary goal of this program is to bolster the tourism industry's infrastructure and operational capacity on Prince Edward Island. It extends support to entities that actively operate a tourism business within the province or plan to commence one. However, there are a few eligibility criteria that applicants must meet:
- The applicant must carry on or intend to carry on business in Prince Edward Island.
- The business must hold a valid tourism establishment license as per the Tourism Industry Act Regulations.
- Bed and breakfast operations as defined by the Tourism Industry Act Regulations are not eligible.
- Accommodation operations need to offer a minimum of three lodging units post-completion to qualify for capital financing.
- The financed project must achieve a minimum two and a half (2½) star rating under the Canada Select Accommodation Rating Program upon completion.
Types of Financial Assistance
The program offers three main types of financial assistance tailored to different needs:
Long-Term Loans
Long-term loans are available for the establishment, expansion, and refurbishment of tourism facilities. These loans can cover various projects, including:
- Restaurants
- Accommodations
- Recreational facilities
- Entertainment establishments
- Tourism activities and attractions
These loans are designed with a maximum period of 20 years, and they should coincide with the expected life of the asset being financed. Importantly, the loan amount generally should not exceed 80 percent of the fair market value or purchase price of the assets being financed.
Intermediate-Term Loans
Intermediate-term loans are suitable for improvements to certain assets, with a focus on medium-term financial needs. The amortization period for these loans should also align with the asset's expected lifespan, but it cannot exceed 10 years. These loans exclude vehicles that are not directly contributing to the borrower's income or sales.
Operating Loans
Operating loans provide up to 100 percent financing primarily for pre-season preparation of tourist facilities. This type of loan is particularly useful for tourism operators who need immediate funding to get their businesses ready for the tourist season.
Encouraging Seasonal Expansion
A distinctive aspect of the Tourism Financing Assistance program is its strong encouragement for projects that aim to expand the tourist season. Extending the shoulder or off-season periods can make Prince Edward Island a more attractive destination year-round. Examples of such projects include recreational complexes that incorporate entertainment facilities alongside lodging and dining options, or accommodation units that are adaptable for other uses during off-season periods.
Conditions and Restrictions
While the Tourism Financing Assistance program offers significant support, there are specific conditions and restrictions that applicants must be mindful of:
- Projects must receive a minimum of a 2½ star rating under the Canada Select Accommodation Rating Program upon completion.
- Bed and breakfast establishments as defined by the Tourism Industry Act Regulations are excluded from the program.
- Accommodation operations must feature at least three lodging units once the project is complete to be eligible for capital financing.
- Loans for vehicles that do not directly contribute to the business's income or sales are not available.
- Capital loans will generally not exceed 80 percent of the asset's fair market value or purchase price, with a maximum repayment period of 20 years.
- Intermediate-term loans must have a repayment period that aligns with the asset's lifespan, not exceeding 10 years.
Application Process
Tourism operators seeking to benefit from this program need to follow a structured application process. It is advisable to prepare thoroughly, ensuring all requisite documentation is in order:
- Completed application form available from Finance PEI.
- Valid tourism establishment license under the Tourism Industry Act Regulations.
- Detailed business plan outlining the project scope, financial requirements, and expected outcomes.
- Proof of fair market value or purchase price of assets being financed.
Applicants often benefit from consulting with a specialist who can guide them through the complexities of the application process and ensure that all conditions are met with compliance.
Conclusion
The Tourism Financing Assistance program is an essential financial support mechanism for tourism operators in Prince Edward Island. By offering a variety of loans tailored to different business needs, the program plays a critical role in enhancing the province's tourism infrastructure and extending the tourist season. Adhering to the program's conditions and preparing a thorough application can significantly increase the chances of securing financial assistance, ensuring the sustainable growth and competitiveness of tourism businesses on the island.
For more information or to apply, tourism operators can contact Finance PEI's Commercial and Resource Lending Division located at 98 Fitzroy Street, Charlottetown, PE C1A 1R7, or reach out via phone at 902-368-6200, fax at 902-368-6201, or email at financepei@gov.pe.ca.
