Tariff Working Capital Assistance Program

A financing program has been developed to provide working capital financing to assist Prince Edward Island businesses impacted by the new export tariffs implemented by the United States of America (the “Tariffs”), ensuring they can maintain operations, preserve jobs, and invest in alternative supply chain strategies. This new loan program will assist qualifying companies to maintain normal business operations during these unprecedented times.

How much financing is available under this program?

Eligible applicants can apply to receive a working capital loan of up to $500,000 with a fixed interest rate of 4% per annum to be used to assist with fixed operating costs with principal payments deferred for 12 months. 

• Loan Amount: up to $500,000
• Term: 6 years (Interest-only for the first 12 months, then structured principal payments over a 5-year period)
• Interest Rate: The loans will bear interest at a fixed rate of 4% per annum, commencing at first disbursement and accruing during the term of the loan.

Repayment of this loan will commence 12 months after the first disbursement, with the balance outstanding to be repaid over the remaining 5-year period (for a total term of 6 years).

Loans are secured by:

• Promissory Note for the full amount of the loan;
• Personal guarantees of the business owner(s);
• Registered General Security Agreement.

No application fee.

Am I eligible to apply?

For a company to be eligible for assistance, the following criteria must be met:

• Prince Edward Island based businesses affected by export tariffs (verified through financial records and trade data);
• Manufacturers, processors, producers and distributors significantly impacted by the export tariffs;
• Tariff Impact: Business must demonstrate that it has been directly affected by export tariff increases (e.g., increased supply chain costs);
• Business Type: Any PEI registered business involved in export activities impacted by tariffs;
• The applicant has a satisfactory credit rating and must not have any defaulted outstanding debt obligation on file in the Province’s Central Default Registry.

What do I need to apply for this program?

Businesses on PEI will be required to submit an application and supporting documentation to Finance PEI, including:

• financial statements for the most recent year end;
• interim financial statements for the current year to date;
• detailed listing of what the loan proceeds will be used for and when funding will be needed;
• statement of personal financial affairs (personal net worth statement) from all applicable shareholders;
• completed Tariff Expense Worksheet;
• successful applicants will be issued a Letter of Offer outlining the complete terms and conditions of the loan.

Ongoing financial reporting will be required.

How do I apply? 

Complete the application form here and submit completed application and supporting documentation to Finance PEI by Email: financepei@gov.pe.ca.

How long will this program be available? 

This program will run until all funding is allocated or until March 31st, 2026, whichever comes first.

Loan proceeds will be disbursed on an as-needed basis for clients, through multiple advances with supporting documentation.

Who do I contact with questions or for additional support?

Jeff Ready
Director, Finance PEI 
94 Euston Street, 2nd floor
Charlottetown, PE C1A 7M8

T: 902-368-6435
E: jcready@gov.pe.ca