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
- Government of Prince Edward Island
- Finance PEI
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|terms_and_conditions
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.
grant_single_labels|projects
This program offers financial assistance for various tourism-related projects in Prince Edward Island aimed at business growth and infrastructure improvement. Eligible activities focus on purchasing, expanding, constructing, or upgrading tourism facilities.
- Purchase of an existing tourism business.
- Expansion of current tourism operations.
- New construction projects for tourism facilities.
- Repair or updating of fixed assets.
- Pre-season preparation of tourist facilities.
- Establishment, expansion, and refurbishment of tourism facilities.
grant_single|admissibleProjectsExample
$ 100,000
Installation of eco-friendly cabins for eco-tourism promotion
$ 150,000
Renovation of a historic hotel to enhance guest experience
$ 40,000
Enhancement of the cycling trail network for spring tourists
$ 200,000
Modernizing the ski lift systems at Blue Mountain to improve safety and efficiency
$ 60,000
Upgrading the camping facilities for the upcoming winter season
$ 50,000
Development of a new heritage walking tour
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
This program is designed for Prince Edward Island tourism operators who have an interest in purchasing a business, expanding, or constructing new facilities and updating fixed assets. Specifically, those who carry on business in Prince Edward Island, excluding bed & breakfast establishments as per the Tourism Industry Act Regulations, and possess a valid tourism establishment license are eligible. Applicants must also ensure their accommodation operations have a minimum of three lodging units once completed to qualify for capital financing.
grant_eligibility_criteria|who_cannot_apply
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.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
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.
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
Here are the steps to submit an application for this grant:
- Step 1: Assess Eligibility
- Ensure that your business meets the grant's eligibility criteria as outlined by the Prince Edward Island program.
- Verify that your tourism business holds a valid tourism establishment license.
- Confirm that your project's objectives align with the grant's goals, such as extending the tourist season or refurbishing facilities.
- Step 2: Gather Required Documentation
- Compile financial statements and business plans to support your application.
- Prepare details of the assets to be financed, including their valuation and expected life span.
- Collect any additional documents required, such as proof of tourism establishment license and Canada Select Accommodation Rating, if applicable.
- Step 3: Develop a Comprehensive Proposal
- Draft a detailed project proposal that includes objectives, expected outcomes, and potential benefits to the tourism sector in Prince Edward Island.
- Highlight how the project will enhance off-season tourism.
- Step 4: Submit the Application
- Prepare and review the complete application package, ensuring all required documentation and supporting materials are included.
- Submit the application through the designated channel as instructed by the fund provider.
- Step 5: Follow-up and Confirmation
- Ensure receipt of confirmation from the funding body that your application has been submitted successfully.
- Retain confirmation details and be prepared to provide additional information if requested during the review process.
grant_single_labels|otherInfo
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.
Apply to this program
Unlock Financial Support for Your Tourism Ventures
This grant program is a strategic funding initiative designed specifically for tourism operators in Prince Edward Island, assisting in key areas such as business purchases, expansions, new constructions, and updates to fixed assets. It aims to foster sustained growth in the local tourism sector by providing flexible financial solutions tailored to the unique needs of businesses operating within this vibrant industry.
In-Depth Overview of the Tourism Financing Assistance Grant
Prince Edward Island's Tourism Financing Assistance program offers crucial financial mechanisms to bolster the tourism sector within the province. This program is tailored for businesses actively operating or planning to establish operations in Prince Edward Island, ensuring these entities have access to the capital required for sustainable growth and enhancement of services. Designed with flexibility in mind, the program targets the acquisition, expansion, repair, or modernization of fixed assets, integral to the long-term viability and competitiveness of tourism establishments.
The financing options provided under this initiative include long-term loans, valid for up to 20 years, and intermediate loans with a maximum term of 10 years, both correlating to the expected lifespan of the financed asset. Eligible expenses under this program encompass the purchase of machinery, equipment, real property, and other vital capital assets while specifically excluding vehicles that don’t contribute directly to the business's income.
A unique aspect of the program is its emphasis on embracing projects that extend the tourist season. Encouraging projects such as multifunctional recreational complexes can attract visitors during shoulder seasons, ensuring consistent off-peak activity. This strategic focus not only aids in stabilizing revenue streams for local operators but also boosts the broader tourism appeal of Prince Edward Island.
For accommodation providers, specific criteria must be met to qualify for capital financing. Post-project completion, operations must achieve a minimum of a 2½ star rating per the Canada Select Accommodation Rating Program, along with providing at least three lodging units. However, it's imperative to note that bed and breakfast establishments, as defined by existing regulations, remain ineligible under this funding model.
Additionally, the program allows for up to 100% financing for operating loans, mainly to assist in the pre-season setup of facilities. This provision ensures that tourism operators can adequately prepare for peak seasons, optimizing their offerings to meet tourist demands effectively.
Finance PEI, the administering body, highlights its commitment to supporting robust tourism infrastructure, recognizing the sector's significant impact on the provincial economy. By facilitating access to comprehensive financial resources, the program aims to empower tourism operators, encouraging innovation, scalability, and resilience across the industry. Ultimately, the Tourism Financing Assistance grant underscores a collective aim to enhance and diversify the tourism landscape of Prince Edward Island, making it more appealing to both domestic and international travelers year-round.
