Small Business Investment Grant Terms and Conditions
By submitting the Small Business Investment Grant application (the “Application”), the applicant (the “Business”) agrees to the following Terms and Conditions of the Small Business Investment Grant (the “Grant”). These Terms and Conditions, the Application, the Request for Payment, the Small Business Investment Grant Guidelines constitute the entire agreement between Innovation PEI and the applicant(s).
The Grant will be subject to the Business purchasing the Eligible Capital Costs identified in the Application and accepted by Innovation PEI, and as identified within the Grant approval notification.
The Grant will be calculated at the rate of 15 percent of Eligible Capital Costs to a maximum Grant amount of $3,750.
Payment will be based on actual Eligible Capital Costs as evidenced at the time of Request for Payment, but in no event shall it exceed the maximum Grant amount.
“Business” means the business identified in the application form.
“Grant” means the financial assistance approved by Innovation PEI for Small Business Investment Grant.
“Project” means the specified related activities, work or undertaking described in the Application.
“Claim Form” means the completed form listing Eligible Capital Costs approved by Innovation PEI.
“Request for Payment” means the completed Claim Form, including copy of each supplier invoice and proof of payment for each Eligible Project Cost.
“Eligible Capital Costs” means those reasonable and proper costs identified on the Businesses Application which have been accepted by Innovation PEI and are deemed capital expenditures in accordance with generally accepted accounting principles, excluding the following items:
- receipts/invoices under $50.00;
- allocated cost or value of goodwill;
- any portion of the cost of an asset that, in the opinion of Innovation PEI, exceeds the fair market value of the asset;
- HST or any other federal or provincial tax which may be eligible to be fully or partially refunded;
- intangible assets and/or development costs;
- speculative land acquisitions;
- general operating costs and supplies;
- cost of goods sold;
- any costs related to personal use;
- personal and passenger vehicles (excludes specialty vehicles);
- shares of a small business; and
- this list is not exhaustive, and other items may be deemed ineligible by Innovation PEI>
To be an Eligible Capital Cost, a capital asset must be purchased from a third party, unaffiliated, arms-length vendor.
2.1 The Grant shall be disbursed once the Business has submitted a complete Request for Payment to Innovation PEI. The contribution will be paid using direct deposit provided that the Applicant provides:
- a complete Request for Payment including copies of each Eligible Cost invoice and proof of payment. Instructions on accessing the Claim Form will be provided if the Business is approved to receive a Grant.
- each receipt/invoice has a minimum value of $50.00.
- complete and accurate business banking information.
- agreement to these Terms and Conditions.
3.1 In addition to the foregoing, the Business agrees to the following conditions:
- Eligible Capital Costs must be purchased between April 1, 2021 and March 31, 2022;
- The Business must submit a Request for Payment to Innovation PEI within 60 days after March 31, 2022 (not later than May 30, 2022). If the completed Request for Payment is not received by Innovation PEI on or before May 30, 2022, the Business will be deemed to have declined the Grant and will have no future claim to payment of the Grant;
- Innovation PEI may decline to contribute to any cost incurred for the purchase of a Capital Cost that was not identified on the Business’ Application;
- Release of information relating to the funding of this Project may be made under the terms and conditions of this agreement. No announcements may be made without written approval of Innovation PEI;
- To permit any authorized representative of Innovation PEI reasonable access to the Business’s premises to inspect the Capital Costs assets;
- To preserve and keep available for audit the books, accounts and records of the costs of the Project for 36 months after the completion of the project and supply such statistical data as may be required by Innovation PEI;
- To obtain all necessary environmental clearance certificates, building permits, licenses, etc., as required by applicable Federal, Provincial, and Municipal regulatory bodies and agencies, and as well, obtain a signed, written lease agreement for the real property if being leased;
- That good standing be maintained with the Consumer, Corporate and Insurance Division of the Office of the Attorney General during the lifetime of Grant;
- Assignment by the Business of the proceeds under the Grant as security to third parties shall not be valid without the prior express written consent of Innovation PEI;
- The Business agrees that no member of the House of Commons of Canada, Senate or the Legislative Assembly of Prince Edward Island shall be admitted to any part or share of this Grant or to any benefits to arise therefrom;
- That the Business shall not, during the 12-month period following the purchase date of the Capital Cost, sell or otherwise dispose of or cease to use asset(s) for which a Grant toward the cost has been made, without the prior written consent of Innovation PEI;
- To further assist in economic development in P.E.I., the Business shall consider purchasing all capital and operating materials, supplies, and services from local P.E.I. firms, providing such firms are able to provide same at competitive costs and provide equal quality and service;
- If a Business is approved for a Grant and subsequently defaults on a financial obligation to any Department or Agency of the Province of Prince Edward Island, payment of the Grant will be issued:
- Firstly, to the Department or Agency of Province of Prince Edward Island any amount that is owing as a result of the defaulted financial obligation; and
- Secondly, to the Business.
- In the event the Business fails to comply with the terms and conditions of the Grant or ceases operations or conducts thereon activities not eligible under Innovation PEI's financial support, the Grant shall be terminated and any contribution paid during the period of non-compliance shall be refunded to Innovation PEI; and
- The Business shall indemnify and save Innovation PEI harmless from all claims, demands, actions and causes of action of third parties that may arise out of this Project;
4.0 OTHER GOVERNMENT ASSISTANCE
4.1 The Business will inform Innovation PEI promptly, in writing, of any further Federal, Provincial, or Municipal assistance to be received for the Project. Innovation PEI shall have the right to adjust the amount of the Grant to take into account the amount of any such further assistance that is to be received.
5.1 This Agreement shall be governed by and construed according to the laws of the Province of Prince Edward Island and the federal laws of Canada applicable therein, and no action or proceeding shall be brought to construe or enforce this Agreement except in those courts having jurisdiction in the Province of Prince Edward Island.
6.0 FREEDOM OF INFORMATION AND PROTECTION OF PRIVACY ACT
6.1 Information contained in and collected in relation to this Agreement is subject to, and will be treated in accordance with, the Prince Edward Island Freedom of Information and Protection of Privacy Act R.S.P.E.I. 1988, Cap. F-15.01 (the “ FOIPP Act” ). Any information provided in respect of this Agreement may be subject to release under the FOIPP Act.
The amount of the Contribution may be disclosed at the discretion of Innovation PEI and in accordance with the FOIPP Act. For additional information contact Innovation PEI or see https://www.princeedwardisland.ca/en/information/justice-and-public-safety/foipp-frequently-asked-questions