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Small Business Investment Grant
Who is eligible for Small Business Investment Grant?
To be an eligible applicant, a business must be located in Prince Edward Island and:
- be registered to do business in Prince Edward Island as a for-profit entity;
- actively operating on Prince Edward Island; and
- be the primary source of income for the applicant OR employ at least one employee (minimum of 560 hrs).
Ineligible applicants include:
- a business that has a defaulted outstanding debt obligation on file in the Province’s Central Default Registry;
- not-for-profit organizations or associations;
- fishers, farmers, and realty companies (including commercial/residential landlords and developers); and
- banks and financial companies, including pawnbrokers, payday loans, cheque cashing and white label cash machines.
Businesses with an export focus that are eligible to apply to Innovation PEI’s Capital Acquisition Assistance program are encouraged to do so.
New project submissions from an applicant in default on any reporting, project completion or financial obligation to Innovation PEI will not be reviewed until a resolution to the default is reached.
What activities and costs are supported?
An eligible business may access support for eligible capital costs related to (this list is representative, not exhaustive):
- leasehold improvements/building construction (land and building);
- technology upgrades; and
- energy efficient upgrades.
Ineligible costs include:
- assets not identified on the Businesses Application and accepted by Innovation PEI;
- receipts under $50.00;
- allocated costs 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;
- capital assets that were not purchased from a third party, unaffiliated, arms-length vendor; and
- this list is not exhaustive, and other items may be deemed ineligible by Innovation PEI.
Small Business Investment Grant runs from April 1, 2023 to March 31, 2024. The program is completed in two steps - application and claim.
- An application must be submitted in the year in which the eligible capital asset(s) is purchased.
- The application will include a list of all the capital assets the business has purchased since April 1st and/or a list of eligible capital assets the business intends to purchase up to March 31st.
- The application is reviewed and if approved, an email notification will be sent to the applicant including application details and instructions on the request for payment process.
The deadline for application submission is March 31st, 2024.
Request for Payment (claiming)
- If the application is approved, and after all the assets are purchased and paid for, the applicant will submit a request for payment based on actual invoices and proof of payment.
- Once processed, the applicant will receive an email notification on direct deposit payment.
One request for payment can be made per application over the 12-month period. The deadline for submitting a request for payment is May 31st, 2024.
Purchase of eligible capital assets must be completed between two third party, unaffiliated, arms-length vendors.
Individual receipts must have a minimum value of $50.00.
What level of assistance is available?
Payment will be based on 15 per cent of the actual eligible cost as determined at the time of the request for payment - resulting in a maximum grant of $3,750.
Regardless of the amount, one application will be accepted per fiscal year (April 1 - March 31) either through this program or Capital Acquisition Assistance.
The combined project funding from all non-repayable government sources cannot exceed 75 per cent of eligible costs.
What criteria are used to evaluate funding applications?
Eligible businesses that submit complete applications will be reviewed on a first-come, first-serve basis. An application is considered to be complete and received when all required information has been submitted to Innovation PEI.
Not all projects meeting the minimum criteria will receive funding. Applications will also be evaluated using the following considerations:
- level of assistance from other government programs offered or available; and
- availability of program funds.
The project must provide economic benefit to the province of Prince Edward Island.
Innovation PEI requires acceptance of the full terms and conditions of the assistance at the time of application. The accepted terms and conditions, application, request for payment, and guidelines shall constitute a contract between Innovation PEI and the applicant(s).
How do I apply?
Innovation PEI encourages potential applicants to consult with an Innovation PEI Business Development Officer for guidance on suitability of the project, other program offerings, and the application process. If the project is not a good candidate for a Small Business Investment Grant, the Business Development Officer may recommend alternative funding programs.
Once ready, an applicant can apply:
- by requesting a printable application form; or
- by submitting a hardcopy application by mail or fax.
What do I need to apply?
To complete the application, be prepared to provide detailed business information and supporting documents including:
- business number and date of incorporation (if applicable);
- business banking information;
- a complete list of capital assets (either purchased or expected to be purchased between April 1 and March 31st) for the project including cost per item;
- description of the business operations; and
- detailed description of the project and how it will benefit the business.