Tourism Financing Assistance
This program is designed to meet the particular needs of Prince Edward Island tourism operators for the following purposes:
- purchase of business
- debt consolidation
- new construction
- repair or updating of fixed assets
The amortization period must coincide with the expected life of the asset being financed, but in no case will it exceed 20 years. These loans may be used for the purchase of machinery, equipment, real property and buildings, or other items of a capital nature. Vehicles that do not directly contribute to the business's income or sales are not eligible. In some cases, operating capital is available for the Tourism sector for seasonal start up.
Tourism includes any person that:
- Carries on business, or intends to carry on business, in the province, and
- Operates a business, other than a bed & breakfast establishment as defined in the Tourism Industry Act Regulations (EC267/99), that holds a valid tourism establishment license issued pursuant to the Tourism Industry Act Regulations.
Projects that will expand the tourist season are strongly encouraged. An example would be recreational complexes, which would feature entertainment facilities as well as lodging and dining. In some cases, loans may be granted for accommodation units that are converted to other uses during off-season periods.
- Upon completion of the project, the project being financed must have a minimum two and one half (2½) star rating under the Canada Select Accommodation Rating Program.
- Bed and breakfast operations, as defined by the Tourism Industry Act Regulations, are not able to borrow from Finance PEI.
- Accommodation operations require a minimum of three lodging units, once complete, to qualify for capital financing.
Long term loan
Capital loans are available for the establishment, expansion and refurbishment. It is also for the purpose of debt consolidation of tourism facilities. Such facilities may be a combination of
Special attention should be given to projects which will extend the shoulder or off season periods when providing greater incentives to off Island guests to visit or extend their stay in Prince Edward Island.
Loans shall not generally exceed 80 per cent of the fair market value or purchase price of the asset(s) being financed, and not exceed a period of 20 years.
The amortization period should coincide with the expected life of the asset being financed, but loans will not exceed 10 years. These loans may be used for improvements to certain assets, excluding vehicles that are not involved in the borrower’s income/sales.
Up to 100 per cent financing may be provided for operating loans to tourism operators, mainly for pre-season preparation of tourist facilities.
There is an application fee of $250.00 or one half (½) of one per cent of the amount of the loan proposed, whichever is greater.