Early Years Centre Expansion Low-Interest Loan Pilot Program
The Early Years Centre Expansion Low-interest Loan Pilot Program has been designed in partnership with the Department of Education and Early Years to provide applicants with the opportunity to access financing for new construction and/or expansion of existing Early Years Centres. This funding is intended to facilitate the creation of additional licensed child care spaces for families on PEI.
To be eligible for the low-interest loan Program, applicants need to commit to the facility being utilized as an Early Years Centre and complete the PEI Early Years Centre Location Suitability Tool. Scoring of the PEI Early Years Centre Location Suitability Tool involves a weighted score that will consider program delivery priorities at the proposed facility such as infant and toddler spaces, extended hours of operation, and not-for-profit business status.
In addition to the Early Years Centre Expansion Low-Interest Loan Pilot Program, approved projects are eligible for a non-repayable Capital Grant from the Department of Education and Early Years which provides up to 20% of the total project costs of new construction or expansion of existing Early Years Centres to a maximum of $200,000 per project
For an applicant to be eligible for assistance, the following criteria must be met:
- Applicant must complete and submit a business plan supporting the new construction or renovation to Finance PEI.
- Applicant must complete and submit the PEI Early Years Centre Location Suitability Tool and receive a score above 94.5 from the review committee.
- Project must be a new construction or significant renovation.
- Project must provide child care spaces for infants (age 0-22 months) or toddlers (age 23 months-3 years), and may also provide child care spaces for preschool-aged children (age 3 years-5 years)
- Proposed project site must be:
- healthy, safe, and secure for children, families, and early childhood staff
- reasonably accessible to the general public
- accessible to those with physical accessibility requirements
- in compliance with local government bylaws or provincial requirements, and National Building Code.
- developed and constructed to meet licensing requirements for indoor and outdoor activity space
- Applicant must agree to align construction/renovation plans that will support/maintain successful Early Years Centre designation
- Project must maintain child care spaces for at a minimum of at least 20 years
Eligible Applicants include:
- Current Early Years Centre operators.
- Non-profits, community-based/service organizations, municipalities or private sector companies with a partnership affiliation with an Early Years Centre;
- Individuals intending to become designated as an Early Years Centre.
- Construction of new facility to include an Early Years Centre or renovation of an existing Early Years Centre, which will assist in creating additional licensed child care spaces where a geographic or service need for increased capacity exists.
Approved loans will be to a maximum 80% loan-to-value.
The loans will bear interest to the successful applicants using a fixed rate of 3%1 per annum for a term of five years and amortized over a period of up to 20 years.
Loans will have an ‘interest only’ period of up to a maximum of 12 months (from 1st disbursement) during construction period or the date of substantial completion.
Loans are secured by (at a minimum):
- Promissory Note for the full amount of the loan
- Personal guarantees of the business owner(s)
- Collateral mortgages on the property(s)
- 1st position General Security Agreement
No application fees
Note 1 For so long as the facility continues to operate as originally intended/approved.
Applicants must complete and submit the following to the Department of Education and Early Years:
Information will be reviewed and evaluated by a committee using a weighted scoring model.
The applicant must complete and submit the following to Finance PEI, including:
- Application for financial assistance;
- Approval of project from the PEI Suitability Tool for Child Care Space Creation review committee;
- Business Plan;
- Financial statements for the most recent year end (if applicable).
- Interim financial statements for the current year to date;
- Details of the construction project or renovation including detailed budget of the project;
- Statement of personal financial affairs (personal net worth statement) from all applicable shareholders;
Successful applicants will be issued a Letter of Offer from Finance PEI outlining the terms and conditions of the approval.
To be eligible for funding under the Capital Grant fund, the successful applicant will be required to complete the attached Application Form.
Department of Education and Early Years will provide the Capital Grant Agreement, which will outline the terms and conditions of the grant program.
The Province of Prince Edward Island is committing $7,000,000 to this new pilot loan portfolio.
The Early Years Centre Expansion Loan Program is administered in partnership by the Department of Education and Early Years and Finance PEI.
Who do I contact with questions or for additional support?
94 Euston Street, 2nd floor
Charlottetown, PE C1A 7M8
T: 902-368-6222 | F: 902-368-6255