Small Business Investment Grant

The Small Business Investment Grant helps Prince Edward Island’s small businesses improve efficiency and innovation by way of a non-repayable financial contribution toward eligible capital asset costs. 

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?

Assistance is open to eligible small businesses operating on Prince Edward Island.

  • Fishers, farmers, not-for-profit organizations, banks and financial companies, and realty companies (including commercial/residential landlords and developers) are not eligible for assistance.
  • The business must have at least one employee (minimum of 560 hours) or the business is the primary source of income for the applicant. (Verification may be requested.) 
  • A person who has multiple qualifying businesses and/or is a controlling shareholder in multiple qualifying businesses is only eligible to access this program for one (1) business per fiscal year.
  • The company is registered to do business federally or provincially.
  • An eligible business can only submit one application per year either through this program or Innovation PEI’s Capital Acquisition program. Businesses with an export focus that are eligible to apply to Innovation PEI’s Capital Acquisition Program are encouraged to do so.

What activities are supported?

Eligible Cost means those reasonable and proper costs of the project which have been accepted by Innovation PEI and are deemed capital expenditures in accordance with generally accepted accounting principles, excluding the following items:

  1. allocated cost or value of goodwill;
  2. any portion of the cost of an asset, that, in the opinion of the Corporation, exceeds the fair market value of the asset;
  3. HST or any other federal or provincial tax which may be eligible to be fully or partially refunded;
  4. Intangible assets and/or development costs;
  5. Speculative land acquisitions; 
  6. Personal and passenger vehicles; and
  7. Capitalized carrying costs (such as interest and labour costs).

Purchase of eligible capital assets will be made by the company between April 1 and March 31, of the given year, and must be completed between two parties operating at arm’s length.

To claim, individual receipts must have a minimum value of $25.00. 

The following non-exhaustive list of capital acquisitions will be considered for funding:

  • Equipment;
  • Leasehold improvements; and
  • New construction (land and buildings) 

What level of assistance is available?

Payment will be based on 15 percent of the actual eligible cost as determined at the time of your request for reimbursement - resulting in a maximum grant of $3,750.

For eligible activities from November 1, 2020, to March 31, 2021, Small Business Investment Grant provides a grant of 30% of the actual eligible costs to a maximum of $7,500

One application to this program per fiscal year (April 1, 2020 - March 31, 2021) will be accepted regardless of the amount.  Requests for payment must be submitted by May 30, 2021. Businesses can include approved multiple capital assets up to a maximum of $25,000. 

If a business has not reached the new, maximum allowable contribution ($7,500) under the program, they may be eligible to submit one additional application for additional, new capital purchases bought and paid for between November 1, 2020, and March 31, 2021.   
NOTE: Applicants who have applied for 2019-2020 fiscal year, must submit their request for payment by June 30, 2020

How do we decide who receives help?

Eligible businesses that submit complete applications for support of eligible capital assets will be approved on a first-come, first-serve basis subject to budget availability.  An application is considered to be complete and received when all required information has been submitted.   

Performance Monitoring

If the application is approved, the letter of offer shall constitute a contract between Innovation PEI and the applicant(s).

What do I need to apply for this service?

All applications must be completed in full prior to submitting. Incomplete applications will not be accepted.
Please use a Chrome web browser for best results when filling out your online application.

What other information do I need to know before I fill in the application?

  • The Small Business Investment Grant will be administered by Innovation PEI. 
  • Innovation PEI staff will be available to assist with online applications.
  • Expenditures receiving non-repayable support from other development agencies are not eligible under this program.
  • Companies must be in good standing with the Province.

What are the terms and conditions of the application?

View the full terms and conditions

*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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