The newly implemented Micro-Loan Program acknowledges and supports entrepreneurship on Prince Edward Island. This new loan initiative will help assist entrepreneurs with financing and working capital requirements with Finance PEI providing loans up to a maximum of $15,000 per applicant for new and expanding businesses to further respond to the needs of local entrepreneurs. New micro-loans will be sourced directly through Finance PEI with repayment terms of up to a maximum of 5 years at an interest rate of TD Bank Prime + 4.5%.
Am I eligible to apply?
Examples of categories eligible for this new financing program are:
- Trades—recent graduates from trade school or those who have a job offer in a new field but do not have the resources to get set up with new tools or necessary equipment .
- Qualification Recognition—newcomers to Canada who require some assistance getting back into their previous line of work, this loan can help to cover the costs of a challenge exam or professional fees.
- Small-scale Food Production—funds available for growers, harvesters, and processors to invest in equipment and materials to increase the supply of food in their communities.
- Business Start-up—great start up business idea, an entrepreneurial spirit and a business plan.
- Winter Production Financing—existing program which provides new and expanding craft and giftware manufacturers with the financing required to increase production of their products during the winter months for sale in the peak selling periods.
How do I apply?
- Complete the Micro-Loan application, including the Business Plan Section and Cash Flow Forecast.
- Submit the completed application to an Account Manager with Finance PEI. The Account Manager will conduct an interview with the applicant(s) to discuss the business proposal and the next steps required to determine eligibility.
Are there any requirements for this program?
- 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.
- Repay immediately the full amount of the outstanding loan should the business be sold or transferred during the term of the guarantee, or if the demand for payment is made by Finance PEI.
May 25, 2016