Apply for Rental Cost Assistance
The Rental Incentive Assistance contributes to rental costs for Prince Edward Island companies to establish a new business or to expand existing production capabilities. Assistance may be as:
- a contribution towards the cost of leasing additional space in any community in the province, or
- competitive rates and terms for leased space in a PEI business park (500-10,000 square feet)
Who is eligible for Rental Incentive funding?
A company (sole proprietorship, partnership, cooperative or limited liability) is eligible for funding if it has a well-developed business and marketing plan and manufactures, processes, or provides exportable services in one of the following sectors:
- food development
- information and communication technology
- First-of-its-kind exportable services in other sectors may be considered.
Retail and consumer services businesses are not eligible for assistance through this support.
What level of assistance is available?
This offers a maximum one-year rental subsidy up to $6.00 per square foot (excluding utilities, taxes, inside maintenance, etc.), payable on a monthly basis.
Lease space may be available in an Innovation PEI owned facility: Lease terms up to five (5) years; base rate is $6.00 per square foot (excluding utilities, taxes, inside maintenance, etc.)
What criteria are used to evaluate funding applications?
Not all projects meeting the minimum criteria will receive funding. Applications will also be evaluated using the following considerations:
- space availability
- potential for long-term viability
- export sales
- qualifications and track records of managers
- import substitution
- cost benefit to the province
- environmental impact
- availability of assistance funds
- employment creation
- level of assistance from other government programs offered or available
Eligible projects must be expected to provide economic benefit to the province and cannot jeopardize similar existing businesses.
Applicants of the Rental Incentive Assistance must provide:
- satisfactory evidence of occupancy (copy of signed lease)
- proof of rental/lease payment (cancelled rent cheque, payment receipt or paid landlord invoice)
Successful applicants must be prepared to provide information, as requested, on the ongoing activities of the business for the performance monitoring period.
If your project is approved, the accepted letter of offer shall constitute a contract betwee n Innovation PEI and the applicant(s).
Should the project fail to comply with the terms of the contract or be discontinued, Innovation PEI may, at its sole discretion:
- declare the applicant to be in nonperformance (default of the contract)
- request the applicant to repay in full the incentive received
- take necessary legal action to collect the incentive 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.