Entrepreneur Loan Program
The Entrepreneur Loan Program is an initiative of the Province of Prince Edward Island designed to help make financing available for the purpose of:
- helping new businesses get started and established firms make improvements and expand;
- to improve access to loans that would not otherwise be available to small businesses up to 100% of the loan request, less the recoverable taxes; and
- to stimulate economic growth and create jobs for Islanders.
The Entrepreneur Loan Program provides entrepreneurs with up to $100,000 for use as an investment in new and existing Prince Edward Island businesses. Loans are sourced directly through Finance PEI with terms up to a maximum of seven years. Interest is charged at a floating rate of TD Bank prime plus three (3) per cent.
Do I qualify?
- 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 these sectors which are not eligible for financing include:
- pawnbrokers, pay day loan, cheque cashing and white label cash machines;
- 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; and
- schools, charities and religious organizations and professional/financial services.
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.
How do I apply?
- Complete the following forms:
- Submit the completed application and business plan to an account manager with Finance PEI. The account manager will conduct an interview with you to discuss the business proposal and the next steps to determine eligibility.
If your loan is approved, you are required to:
- Obtain any necessary licenses, permits, and insurance required for your business and register the business in accordance with federal, provincial, or municipal regulations.
- Sign all appropriate documentation forms required by Finance PEI including, but not limited to, loan agreements and guarantees for each individual with ownership. Additional guarantors and security may be required.
- Open a business account with your financial institution and deposit an amount equal to 10 per cent of the approved loan amount.
- A loan application fee equal to two (2) per cent of the loan amount is due at the time of loan approval, payable to Finance PEI. The loan application fee may be added to the approved loan amount, however will be deducted from the first advance.
- Repay immediately the full amount of the outstanding loan should the business be sold or transferred during the term of the loan or if Finance PEI makes the demand for payment.
For More Information
If you have questions about requirements or the application process, please contact one of our Finance PEI Staff.