Finance PEI: Entrepreneur Loan Program

Overview of the Finance PEI: Entrepreneur Loan Program program:

The Entrepreneur Loan Program is an initiative of the Province of Prince Edward Island designed to help make financing available for the purpose of: helping new businesses get started and established firms make improvements and expand; to improve access to loans that would not otherwise be available to small businesses up to 100% of the loan request, less the recoverable taxes; and to stimulate economic growth and create jobs for Islanders. The Entrepreneur Loan Program provides entrepreneurs with up to $100,000 for use as an investment in new and existing Prince Edward Island businesses. Loans are sourced directly through Finance PEI with terms up to a maximum of seven years. Interest is charged at a floating rate of TD Bank prime plus three (3) percent.

Benefits of the Finance PEI: Entrepreneur Loan Program program:

• Loans of up to $100,000 are available, with terms up to a maximum of 7 years. Interest is calculated at a floating rate of TD Bank Prime plus 3%.

Eligibility criteria of the Finance PEI: Entrepreneur Loan Program program:

• You must be a resident of Prince Edward Island, be 18 years of age or older, and be the owner/operator of the business.
• If the business is a partnership, each partner must be a co-applicant. For a corporation, each shareholder must be a co-applicant.
• At the time of the loan approval, you must have 10 percent of the total loan available in equity.
• Working capital financing will not exceed $35,000. Funding for capital costs will only be issued when Finance PEI receives invoices/receipts, minus refundable taxes.
• If your loan is approved, you are required to:
• Obtain any necessary licenses, permits, and insurance required for your business and register the business in accordance with federal, provincial, or municipal regulations.
• Sign all appropriate documentation forms required by Finance PEI including, but not limited to, loan agreements and guarantees for each individual with ownership. Additional guarantors and security may be required.
• Open a business account with your financial institution and deposit an amount equal to 10 percent of the approved loan amount.
• Repay immediately the full amount of the outstanding loan should the business be sold or transferred during the term of the loan or if Finance PEI makes the demand for payment.