Rental Incentive Assistance
Rental Incentive Assistance contributes to rental costs for Prince Edward Island businesses to establish a new business or to expand existing production capabilities.
Who is eligible for Rental Incentive Assistance?
To be an eligible applicant, a business must be located in Prince Edward Island and:
- be registered to conduct business and actively operating on Prince Edward Island;
- manufactures, processes, or develops goods or services primarily for export;
- operates within one of these strategic sectors:
- aerospace and defence
- advanced manufacturing and processing
- renewable energy and clean technology
- information and communications technology
- creative and cultural industries
- first-of-its-kind exportable goods or services in other sectors may be considered.
A business that has a defaulted outstanding debt obligation on file in the Province’s Central Default Registry is not eligible for Innovation PEI assistance.
Ineligible applicants include:
- retail and consumer service businesses;
- a business that has a defaulted outstanding debt obligation on file in the Province’s Central Default Registry.
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 the Rental Incentive Assistance for eligible rental costs related to:
- cost of leasing additional space in any community in the province of Prince Edward Island; or
- cost of leased space (based on availability) in a PEI business park (500 up a maximum of 10,000 square feet):
- lease term up to five (5) years; and
- base rate of $6.00 per square foot (excluding common area costs such as utilities, taxes, inside maintenance, etc.).
What level of assistance is available?
An eligible business can access support from Rental Incentive Assistance for a maximum one-year rental subsidy up to $6.00 per square foot (excluding common area costs such as utilities, taxes, inside maintenance, etc.), on 500 up a maximum of 10,000 square feet, payable on a monthly basis.
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:
- space availability;
- potential for long-term viability;
- export sales;
- qualifications and track records of managers;
- import substitution;
- economic benefit to the province;
- environmental impact;
- availability of program funds
- employment creation; and
- level of assistance from other government programs offered or available.
The project must provide economic benefit to the province of Prince Edward Island.
If the application is approved, Innovation PEI will require acceptance of a letter of offer stating the terms and conditions of approval. When accepted, the letter of offer shall constitute a contract between Innovation PEI and the applicant(s).
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)
How do I apply?
Innovation PEI encourages potential applicants to consult with an Innovation PEI Business Development Officer for guidance on the suitability of the project and the application process. If the project is not a good candidate for Rental Incentive Assistance, the Business Development Officer may recommend alternative funding programs.
An application must be submitted before any financial or legal commitment is made on the project.
What do I need to apply?
To complete the application, be prepared to provide detailed business information and supporting documents including:
- outline the history and provide a description of the business;
- existing businesses will need detailed Financial Statements for the previous two years;
- new businesses will need a completed business plan;
- description of the proposed project or activity in relation to the products and/or services delivered by the business;
- detailed description of the economic benefits to the organization and to Prince Edward Island;
- detailed information on the estimated costs of the proposed project or activity (cost estimates should be supported by written quotations);
- source of funds for the project (for example, lending institutions, banks, government loans and/or grants);
- explanation of the business's current market position and projected market, outlining any increases in market share; and
- a list of all shareholders and key management personnel.