Tourism Financing Assistance — Operating Loan

The Tourism Financing Assistance program offers comprehensive financing options to support the development and expansion of the tourism sector in Prince Edward Island. Different loan terms are tailored to align with the asset life and project needs.

• Long-term capital loans for establishment, expansion, and refurbishment of tourism facilities, with a maximum term of 20 years, financing up to 80% of fair market value.
• Intermediate-term loans available for asset improvements, excluding non-income generating vehicles, with a maximum term of 10 years.
• Operating loans offering up to 100% financing mainly for pre-season preparations of tourist facilities.

Eligibility for this grant is determined by specific requirements related to the applicant's business operations and licensing.

• The applicant must carry on or intend to carry on a tourism business in Prince Edward Island.
• The applicant must operate a tourism business other than a bed & breakfast establishment, as defined by the Tourism Industry Act Regulations (EC267/99).
• The applicant must hold a valid tourism establishment license issued under the Tourism Industry Act Regulations.
• Accommodation operations must include a minimum of three lodging units once complete to qualify for capital financing.

Who is eligible?

Who is not eligible

This grant has certain restrictions that exclude specific types of businesses to ensure alignment with the objectives of supporting tourism operators. The following companies or activities are explicitly not eligible for this financing assistance.

• Bed and breakfast establishments as defined by the Tourism Industry Act Regulations.
• Tourism operations that do not hold a valid tourism establishment license.
• Accommodation operations with fewer than three lodging units once completed.
• Vehicles that do not directly contribute to the business's income or sales.

Eligible expenses

This grant program supports tourism operators in Prince Edward Island with initiatives to enhance their business operations and extend the tourist season. The eligible projects focus on business expansion, construction, and assets improvement in the tourism sector.

• Purchase and expansion of tourism businesses.
• Construction of new facilities related to tourism operations.
• Repair or updating of fixed assets such as machinery, equipment, and buildings.
• Creation or expansion of recreational complexes featuring entertainment facilities, lodging, and dining.
• Conversion of accommodation units for alternate uses during off-season periods.
• Establishment, expansion, or refurbishment of tourism facilities including restaurants, accommodations, and entertainment venues.

Eligible geographic areas

This grant is specifically designed for tourism operators located in Prince Edward Island. The eligible location is clearly defined to support regional tourism development.

• Businesses operating in Prince Edward Island.

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.

Here are additional relevant details for this grant:

• Projects should focus on extending the tourist season by attracting off-Island visitors and encouraging longer stays.
• Loans generally should not exceed 80% of the fair market value or purchase price of the financed asset(s).
• Minimum accommodation ratings and units must be met for eligibility in financing proposals.
• There are specific eligibility limitations for vehicles, focusing on those directly contributing to income or sales.