Tourism Financing Assistance — Operating Loan
PE, Canada
Loan to finance tourism operating costs in Prince Edward Island (PEI)
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
- Arts, entertainment and recreation
- Accommodation and food services
grant_single|grantors
- Finance PEI
- Government of Prince Edward Island
grant_single|status
grant_card_status|open
grant_single_labels|preview
Support to help tourist facilities cover operating costs during pre-season preparation.
grant_single_labels|projects
The Tourism Financing Assistance program in Prince Edward Island offers financial support for a variety of projects aimed at enhancing the tourism sector. Eligible activities focus on the purchase, expansion, and improvement of tourism-related facilities and assets.
- Purchase of an existing tourism business
- Business expansion
- New construction projects
- Repair or updating of fixed assets
- Purchase of machinery, equipment, and real property
- Establishment, expansion, and refurbishment of tourism facilities
- Debt restructuring for tourism facilities
- Operating capital for seasonal start-up
- Projects aimed at expanding the tourist season, such as recreational complexes
grant_single|admissibleProjectsExample
$100,000
Jasper
Installation of eco-friendly cabins for eco-tourism promotion
$150,000
Ottawa
Renovation of a historic hotel to enhance guest experience
$40,000
Victoria
Enhancement of the cycling trail network for spring tourists
$200,000
Blue Mountain
Modernizing the ski lift systems at Blue Mountain to improve safety and efficiency
$60,000
Whistler
Upgrading the camping facilities for the upcoming winter season
$50,000
Halifax
Development of a new heritage walking tour
grant_single_labels|admissibility
This grant program is designed for Prince Edward Island tourism operators with specific eligibility criteria:
- The business must be carried on, or intended to be carried on, in Prince Edward Island.
- The business must operate with a valid tourism establishment license issued under the Tourism Industry Act Regulations.
- Accommodation operations must have a minimum of three lodging units to qualify for capital financing.
- The project must achieve a minimum of a 2½ star rating under the Canada Select Accommodation Rating Program upon completion.
- Bed and breakfast operations, as defined by the Tourism Industry Act Regulations, are not eligible.
grant_eligibility_criteria|who_can_apply
This program is designed to assist tourism operators in Prince Edward Island with specific business needs. Eligible companies must be involved in the tourism industry and hold a valid tourism establishment license.
- Businesses carrying on or intending to carry on activities in the tourism industry.
- Operations excluding bed and breakfast establishments as defined by local regulations.
grant_eligibility_criteria|who_cannot_apply
While the Tourism Financing Assistance program supports many tourism ventures in Prince Edward Island, there are specific restrictions on eligibility based on the type of business and its main activities.
- Bed and breakfast operations, as defined by the Tourism Industry Act Regulations, are ineligible to borrow from Finance PEI.
- Accommodation operations must have a minimum of three lodging units once complete to qualify for capital financing.
- Vehicles that do not directly contribute to the business's income or sales are not eligible for financing.
- Businesses without a valid tourism establishment license issued under the Tourism Industry Act Regulations are not eligible.
grant_eligibility_criteria|eligible_expenses
This grant program in Prince Edward Island offers financing assistance for various tourism-related expenses:
- Purchase of business
- Expansion
- New construction
- Repair or updating of fixed assets
- Purchase of machinery, equipment, real property and buildings, or other capital items
grant_eligibility_criteria|zone
Companies eligible for this grant must carry on or intend to carry on business in Prince Edward Island. This requirement is specific to the geographical location where the tourism business must operate.
- Prince Edward Island
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. The evaluation is based on innovation, potential impact, feasibility, and alignment with program objectives.
- Innovation: Uniqueness and creativity of the proposed project.
- Potential Impact: Expected benefits and outcomes of the project.
- Feasibility: Practicality and likelihood of project success.
- Alignment with Program Objectives: Consistency with the goals and focus areas of the grant program.
grant_single_labels|register
Step 1: Understand Eligibility and Requirements
- Review the specific eligibility criteria for the Tourism Financing Assistance program.
- Ensure your business type and proposed project align with the program's objectives.
- Confirm compliance with the Canada Select Accommodation Rating Program requirement.
Step 2: Prepare Business and Project Documentation
- Gather documentation about your business, including financial statements and business license.
- Prepare a detailed project plan outlining the purpose, scope, and expected outcomes.
- Develop a budget and timeline for the project, demonstrating financial viability.
Step 3: Application Preparation
- Download or request the application form for the Tourism Financing Assistance program.
- Complete the application form, ensuring all fields are filled correctly.
- Attach all necessary supporting documents, including project plans and financial information.
Step 4: Submission of Application
- Review the completed application for accuracy and completeness.
- Submit the application form and supporting documents to Finance PEI as instructed, either online or via mail.
- Retain a copy of the application submission for your records.
Step 5: Follow-Up
- Contact Finance PEI to confirm receipt of your application.
- Be prepared to provide additional information or clarification if requested by Finance PEI.
- Monitor communications from Finance PEI regarding the status of your application.
Apply to this program
Tourism Financing Assistance Program for Prince Edward Island
The Tourism Financing Assistance program is specifically tailored to support Prince Edward Island tourism operators in purchasing businesses, expanding operations, or updating fixed assets. Designed to enhance and invigorate the local tourism sector, this financial assistance provides loans for both seasonal and capital needs.
Comprehensive Guide to the Tourism Financing Assistance Program
The Tourism Financing Assistance Program offered in Prince Edward Island is a targeted initiative that aims to support the growth and sustainability of the local tourism industry. By providing financial help to tourism operators, the program addresses key operational needs, including business purchase, expansion, construction, and asset refurbishment. This initiative is essential not only for the businesses involved but also for the economic vitality of Prince Edward Island, promoting tourism and extending the tourist season, which is crucial for a thriving local economy. The program supports operators by providing loans on flexible terms that coincide with the asset's expected life, with a limit of up to 20 years. This allows businesses to manage their finances effectively over the long term. By focusing on capital items—such as machinery, equipment, real property, and buildings—the program encourages sustainable growth and infrastructure development. It's equally important to note that vehicles not directly contributing to business income are not eligible for this financial assistance, ensuring that funds are used strategically to maximize economic impact. One key component of the Tourism Financing Assistance is its emphasis on extending the tourist season. Projects such as recreational complexes, which integrate entertainment facilities along with lodging and dining options, are highly encouraged. This not only increases the island's attractiveness as a year-round destination but also supports the local economy during off-peak periods. Furthermore, the program allows for innovative solutions, such as repurposing accommodation units for other uses during the off-season, thereby enhancing business flexibility and adaptability. To qualify for this funding, businesses must meet certain criteria. For example, upon project completion, a tourism operation must achieve a minimum of two and a half star rating under the Canada Select Accommodation Rating Program. Additionally, the business must consist of at least three lodging units to qualify for capital financing, ensuring that the funded projects are substantial and impactful for the tourism sector. The program is not open to bed and breakfast establishments as defined by the Tourism Industry Act Regulations. Instead, it focuses on larger-scale operations that can significantly contribute to Prince Edward Island’s tourism landscape. With a structure that supports long-term capital loans, intermediate loans, and operating loans, the program offers a comprehensive suite of financial solutions tailored to diverse business needs. In terms of financing, the program’s capital loans, aimed at establishment, expansion, or refurbishment, cover up to 80 percent of the asset's fair market value or purchase price. The maximum term for this type of loan is 20 years. Intermediate-term loans are designed for asset improvements, excluding non-revenue-generating vehicles, and are offered with terms of up to 10 years. This ensures that businesses can continue to evolve and enhance their offerings to meet changing market demands. Operating loans, providing up to 100 percent financing, are particularly beneficial for tourism operators preparing for the upcoming season. These loans are intended for pre-season preparations, allowing businesses to ensure that their facilities are ready and appealing for guests. By offering this provision, the program helps businesses maintain high standards and competitive advantages that are crucial for success in the tourism industry. Overall, the Tourism Financing Assistance Program is a strategic initiative aimed at fostering economic growth and sustainability within Prince Edward Island’s tourism sector. Through well-structured financial support, it empowers local tourism operators to enhance their operations, attract more visitors, and extend the economic benefits of tourism across longer periods. By doing so, the program not only revitalizes businesses but also contributes to the broader goal of positioning Prince Edward Island as a premier destination in Canada.