Programme de prêts aux entrepreneurs
PE, Canada
Prêt aux entrepreneurs de l’Île-du-Prince-Édouard
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Prêts et investissements
grant_single|eligibleIndustries
- Commerce de détail
grant_single|grantors
- Gouvernement de l’Île-du-Prince-Édouard
- Finances Î.-P.-É
grant_single|status
grant_card_status|open
grant_single_labels|preview
Obtenez un prêt allant jusqu’à 100 000 $, d’une durée maximale de 7 ans, pour le démarrage, l’amélioration ou l’expansion d’une entreprise.
grant_single_labels|projects
The Entrepreneur Loan Program provides financing for new businesses to start and for established firms to improve and expand. Eligible activities must help stimulate economic growth and create jobs for Islanders.
- New business startups
- Improvements and expansion for established firms
- Purchase of capital costs
- Working capital financing (up to $35,000)
grant_single|admissibleProjectsExample
$60,000
Charlottetown
Établir une boulangerie locale avec des pratiques durables à Charlottetown
$90,000
Moncton
Création d'une application mobile pour la promotion du tourisme local à Moncton
$80,000
St. John's
Lancement d'une entreprise sociale axée sur la réduction des déchets à St. John's
$35,000
Summerside
Expansion d'un projet de jardin communautaire à Summerside
$94,000
Halifax
Lancement d'une startup technologique axée sur les solutions IA à Halifax
$55,000
Fredericton
Rénovation et amélioration d'un centre communautaire existant à Fredericton
grant_single_labels|admissibility
Applicants must meet specific criteria to qualify for the Entrepreneur Loan Program in Prince Edward Island.
- You must be a resident of Prince Edward Island, be 18 years of age or older, and be owner/operator of the business.
- If the business is a partnership, each partner must be a co-applicant. For a corporation, each shareholder must be a co-applicant.
- At the time of the loan approval, you must have 10 per cent of the total loan available in equity.
- Working capital financing will not exceed $35,000.
- Funding for capital costs will only be issued when Finance PEI receives invoices/receipts, minus refundable taxes.
- Specific activities within certain sectors such as pawnbrokers, pay day loan, cheque cashing, white label cash machines, consulting, and several other services listed are not eligible for financing.
- Businesses will only be eligible for financing when sufficient capacity exists for the industry in the area, as determined by the staff of Finance PEI.
grant_eligibility_criteria|who_can_apply
The Entrepreneur Loan Program supports eligible businesses in Prince Edward Island by providing financing for new and existing ventures. To qualify, businesses must avoid specific ineligible sectors such as pawnbroking, consulting, and food services.
- New businesses looking to get started.
- Established firms aiming to make improvements or expand.
grant_eligibility_criteria|who_cannot_apply
The Entrepreneur Loan Program excludes specific types of companies from eligibility due to existing supports or industry capacity considerations.
- Pawnbrokers, payday loan, cheque cashing, and white label cash machines
- Consulting
- Grocery/convenience stores
- Food and beverage services
- Fishing, farming, and forestry where similar supports already exist
- Real estate development/brokerage, bed & breakfast/motel/cottage operation, and insurance or business brokerage
- Schools, charities, and religious organizations, and professional/financial services
grant_eligibility_criteria|eligible_expenses
The Entrepreneur Loan Program allows for financing of various business expenses aimed at new and existing businesses in Prince Edward Island.
- Investment in new businesses
- Improvements and expansions for established firms
- Working capital financing (up to $35,000)
- Capital costs (issued upon receipt of invoices/receipts, minus refundable taxes)
grant_eligibility_criteria|zone
The eligible geographic zones for this grant are within Prince Edward Island, Canada.
- Prince Edward Island
grant_single_labels|criteria
Les critères d'évaluation pour cette subvention incluent la viabilité économique du projet et son impact sur l'économie canadienne.
- Viabilité économique du projet
- Impact sur l'économie canadienne
grant_single_labels|register
- Step 1: Complete the Entrepreneur Loan application form.
- Step 2: Complete the Business Plan form.
- Step 3: Complete the Cash Flow Forecast form, including a minimum of two to three years' cash flow projections.
- Step 4: Submit the completed application and business plan to an account manager with Finance PEI.
- Step 5: Attend an interview conducted by the account manager to discuss the business proposal and determine eligibility.
grant_single_labels|otherInfo
The Entrepreneur Loan Program in Prince Edward Island provides financial assistance to new and existing businesses with favorable loan terms and requirements.
- Loans are up to $100,000 with a maximum term of seven years.
- Interest rate is TD Bank prime plus three (3) per cent.
- Businesses in certain sectors such as consulting, grocery stores, and food services are not eligible.
- A capital cost funding requires submission of invoices/receipts minus refundable taxes.
- Businesses must demonstrate sufficient industry capacity in the area as determined by Finance PEI staff.
grant_single_labels|contact
financepei@gov.pe.ca
902-368-6200
S’inscrire à ce programme
Prince Edward Island Entrepreneur Loan Program
The Prince Edward Island Entrepreneur Loan Program offers up to $100,000 in financing to help new and existing businesses on PEI develop, expand, and stimulate economic growth. This program, operated by Finance PEI, provides accessible funding to eligible Island entrepreneurs with competitive interest rates.
Understanding the Prince Edward Island Entrepreneur Loan Program
The Prince Edward Island Entrepreneur Loan Program is an initiative by Finance PEI, a government body dedicated to supporting local businesses. This program provides financial assistance to entrepreneurs in PEI, aiming to foster economic growth, facilitate business expansions, and create jobs within the Island's community.
The program targets both new startups and established businesses, offering loans up to $100,000. These funds can be used for various business-related activities, excluding certain specified sectors. This initiative helps bridge the gap for businesses that might otherwise struggle to secure loans from traditional financial institutions.
Eligibility Criteria
To qualify for the Entrepreneur Loan Program, applicants must meet the following criteria:
- Reside on Prince Edward Island and be at least 18 years old.
- Own and operate the business in question.
- If the business is a partnership, every partner must be a co-applicant. For corporate entities, all shareholders must be co-applicants.
- Possess 10% of the total loan amount as equity at the time of loan approval.
It is crucial to note that businesses within certain sectors are ineligible for this program. These include pawnbroking, payday loans, cheque cashing services, white label cash machines, consulting firms, grocery stores, convenience stores, food and beverage services, fishing, farming, forestry endeavors with existing supports, real estate development, brokerage, bed & breakfast establishments, motels, cottage operations, insurance or business brokerage, schools, charities, religious organizations, and professional or financial services. Additionally, Finance PEI reserves the right to determine industry capacity within a given area before approving loans.
Loan Terms and Conditions
The Entrepreneur Loan Program provides loans up to $100,000 with a repayment term of up to seven years. The interest rate is tied to the TD Bank prime rate plus an additional 3%. The loans cover up to 100% of the requested amount, excluding recoverable taxes.
Working capital loans are capped at $35,000. For capital costs, funds will only be disbursed upon receipt of applicable invoices or receipts, minus any refundable taxes.
Application Process
Applying for the Entrepreneur Loan Program is a straightforward process. Applicants must complete and submit several forms, including:
- Entrepreneur Loan application
- Business Plan form
- Cash Flow Forecast form, projecting a minimum of two to three years of cash flows
Once submitted, an account manager from Finance PEI will conduct an interview with the applicant to discuss the business proposal and determine eligibility. This interview is a critical step, allowing the assessment of the business's viability and the applicant's preparation.
Obligations and Requirements Post-Approval
If the loan application is approved, the borrower must adhere to several requirements:
- Secure all necessary licenses, permits, and insurance for business operations.
- Register the business according to federal, provincial, or municipal regulations.
- Sign all necessary documentation, including loan agreements and personal guarantees from each business owner or partner. Additional guarantors and security may also be required.
- Open a business account and deposit an amount equivalent to 10% of the approved loan.
- Repay the entire outstanding loan amount immediately if the business is sold or transferred during the loan term, or upon demand for payment by Finance PEI.
Benefits of the Entrepreneur Loan Program
The primary benefit of this loan program is its accessibility. Many small businesses struggle to secure financing due to stringent requirements from traditional financial institutions. This program provides a viable alternative, opening doors for businesses that might not otherwise have access to necessary capital.
Moreover, the competitive interest rates and flexible repayment terms make this program attractive. Entrepreneurs can secure up to seven years to repay the loan at an interest rate that, although variable, is reasonable and tied to a well-known benchmark (the TD Bank prime rate).
Another significant advantage is the program's contribution to economic growth on Prince Edward Island. By supporting local businesses, the program helps create job opportunities and stimulates the local economy, benefitting the broader community.
Common Challenges and How to Overcome Them
Despite its numerous benefits, applicants might face challenges during the application process:
- Preparing a solid business plan: A well-drafted business plan is critical for loan approval. Applicants should invest time and, if necessary, seek professional assistance to ensure their business plan is comprehensive and convincing.
- Meeting equity requirements: The requirement to have 10% of the loan amount in equity can be a hurdle. Entrepreneurs should assess their personal finances and explore ways to raise the necessary equity before applying.
- Providing accurate cash flow projections: Accurate cash flow forecasting is essential. Applicants should use realistic assumptions and perhaps consult with a financial advisor to ensure their projections are reasonable and achievable.
- Obtaining licenses and permits: Navigating the regulatory landscape can be complex. Entrepreneurs should start this process early and ensure they understand all requirements to avoid delays.
Conclusion
The Prince Edward Island Entrepreneur Loan Program is a valuable resource for local entrepreneurs looking to start or expand their businesses. By offering up to $100,000 in financing with competitive terms, the program facilitates economic growth and job creation on the Island.
Eligible entrepreneurs should carefully consider this opportunity and ensure they meet all requirements before applying. With thorough preparation and a clear understanding of the program's terms and conditions, applicants can significantly increase their chances of securing funding and achieving their business goals.
For more detailed information or assistance with the application process, applicants are encouraged to contact Finance PEI directly. Their experience and guidance can be invaluable in navigating the loan application process and setting up a business for success.