Apply for Equipment Purchase and/or Renovations Assistance
The Capital Acquisition Support provides financial help to Prince Edward Island businesses in getting the infrastructure needed from start-up to international exporting. Through this program, business and government work together at those times when the business is most exposed to financial risk. Government will provide financial help during the start-up period and during growth of product lines or production of new products.
Am I eligible?
- You are eligible if you are a manufacturer or processor and provider of exportable services.
- You must be sole proprietorships, partnerships, cooperatives or limited liability companies with well developed business and marketing plans.
- Services to primary industries will be eligible for help for expansions only, provided the activity clearly contributes to import replacement.
- If you are engaged in retailing and services (to businesses or consumers), you are ineligible for assistance.
What activities will this support?
- Capital acquisition: Machinery, renovations, leasehold improvements.
What is the level of assistance available?
- up to 25 per cent of the cost of equipment and renovations, or lease improvements directly related to the establishment of a new business
- up to 25 per cent of the cost of facility expansions or modernizations and equipment directly related to the expansion of an existing business
Eligible projects for capital contributions must not exceed $40,000 in eligible capital costs.
What process will be followed to assess the applications?
Other conditions when evaluating an applicant's request for assistance will include:
- potential for long-term viability
- export sales
- qualifications and track records of managers
- import substitution
- cost benefit to the province
- environmental impact
- availability of support funds
- employment creation
- level of assistance from other government assistance offered or available
The Capital Acquisition Support will monitor your project for a two year period. You must also be ready to offer financial statements and information, as needed, on the ongoing activities of your business.
If your project is approved, a letter of offer will be sent to you. This will create a contract between yourself and Innovation PEI.
Should your project fail to comply with the terms of the contract it will be discontinued. The Corporation may at its sole discretion:
- declare your business to be in non-performance (default) of the contract
- request that you repay in full the amount received
- take necessary legal action to collect the amount in full with interest
Application must be submitted before any financial or legal commitment is made on the project.
What do I need to apply for this service?
You should be prepared to provide the following:
- Business Plan Marketing Plan Project
- Feasibility or Market Study
- Competitive Analysis
- If the application concerns a study, please provide the consultant’s proposal(s) and the study’s terms of reference. (Costs should be supported by written quotations.)
What other information do I need to know before I fill in the application?
- Outline the history and description of your business.
- Existing businesses are required to provide detailed Financial Statements for the previous two years.
- New businesses and businesses planning expansions are required to submit complete business plans.
- List all shareholders and key management personnel.
- Describe the proposed project or activity in relation to the products and/or services delivered by your company.
- Describe the economic benefits to your organization and to Prince Edward Island.
- Provide detailed information on the estimated costs of the proposed project or activity. (Cost estimates should be supported by written quotations.)
- Outline all financial sources and provide appropriate contact information. (For example, lending institutions, banks, government loans and/or grants).
- Describe the size and capacity of your existing facility in relation to the proposed activity.
- Explain your current market position and identify your projected market outlining any increases in market share.