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.

To support our Island businesses that are facing significant financial challenges resulting from the COVID-19 pandemic, Innovation PEI is increasing funding through this program for activities from November 1, 2020, to March 31, 2021.   We want to support investments that will help businesses adapt to a new normal and position them to capitalize on future economic recovery. 

Am I eligible?

  • You are eligible if you are a manufacturer or processor of products/services.
  • You must be a sole proprietorship, partnership, cooperative or limited liability company with well-developed business and marketing plans.
  • If you are engaged in retailing and services (to businesses or consumers), you are ineligible for assistance.

What activities will this support?

Eligible capital acquisitions may include machinery/equipment, renovations or leasehold improvements directly related to the establishment of a new business or the expansion of an existing business.

What is the level of assistance available? 

The assistance provide up to 25 per cent of the eligible costs to a maximum of $10,000 assistance.

For eligible activities from November 1, 2020, to March 31, 2021, Capital Acquisition Support provides up to 50% of the eligible costs to a maximum of $20,000

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

Performance Monitoring

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 
  • Resume 
  • 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?

  1. Outline the history and description of your business. 
  2. Existing businesses are required to provide detailed Financial Statements for the previous two years. 
  3. New businesses and businesses planning expansions are required to submit complete business plans. 
  4. List all shareholders and key management personnel. 
  5. Describe the proposed project or activity in relation to the products and/or services delivered by your company. 
  6. Describe the economic benefits to your organization and to Prince Edward Island. 
  7. Provide detailed information on the estimated costs of the proposed project or activity. (Cost estimates should be supported by written quotations.)
  8. Outline all financial sources and provide appropriate contact information. (For example, lending institutions, banks, government loans and/or grants). 
  9. Describe the size and capacity of your existing facility in relation to the proposed activity.
  10. Explain your current market position and identify your projected market outlining any increases in market share.
*This information is provided for information purposes and is not comprehensive and reflective of all Innovation PEI policies.  Not all projects meeting the minimum assistance criteria outlined will receive funding.  Please consult with an Innovation PEI staff member for guidance specific to your company's situation.
Innovation PEI

General Inquiries

Innovation PEI
94 Euston Street
PO Box 910
Charlottetown, PE   C1A 7L9

Phone: 902-368-6300
Toll-free (North America): 1-800-563-3734
Fax: 902-368-6301

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