Small Business Investment Grant

Overview of the Small Business Investment Grant program:

The Small Business Investment Grant (SBIG) is an initiative of the Government of Prince Edward Island designed to help Island-owned businesses grow, become more efficient, and adopt innovative practices. Administered by Innovation PEI, this grant encourages small businesses to invest in their operations by providing financial support for eligible capital purchases. The grant reimburses 15% of eligible expenditures, up to a maximum of $3,750 per business, per year. The purpose is to ease the financial burden of acquiring or upgrading equipment, software, or other business-related infrastructure that improves efficiency, productivity, or competitiveness. This is a non-repayable grant that supports a wide range of capital asset purchases, including digital tools, production equipment, renewable energy systems, and health and safety improvements. The program specifically excludes certain items like inventory, vehicles, and land, and cannot be used for routine maintenance or operational expenses. Eligible purchases must be made from Island-based businesses, reinforcing the program’s goal of circulating investment within the local economy. If the needed product or service is not available locally, businesses may request prior approval to purchase from out-of-province suppliers. The SBIG is ideal for small enterprises across all sectors—retail, food and beverage, manufacturing, services, tourism, etc.—looking to modernize their operations and boost long-term sustainability. Applicants must be for-profit, PEI-based, and in good standing with provincial regulations.

Benefits of the Small Business Investment Grant program:

• Direct financial support for eligible capital investments
• Encourages business modernization and innovation
• Supports purchase of equipment, software, renewable energy systems, and tools
• Incentivizes local economic activity by requiring PEI-based suppliers
• Enables small businesses to increase efficiency, reduce costs, and become more competitive
• Simple application and reimbursement process
• Enhances business sustainability with support for clean tech and safety upgrades

Eligibility criteria of the Small Business Investment Grant program:

• To be an eligible applicant, a business must be located in Prince Edward Island and:
• Be registered to do business in Prince Edward Island as a for-profit entity;
• Actively operating on Prince Edward Island; and
• Be the primary source of income for the applicant OR employ at least one 4. employee (minimum of 560 hrs).
• Ineligible applicants include:
• A business that has a defaulted outstanding debt obligation on file in the Provinces Central Default Registry;
• Not-for-profit organizations or associations;
• Fishers, farmers, and realty companies (including commercial/residential 4. landlords and developers); and
• Banks and financial companies, including pawnbrokers, payday loans, cheque cashing and white label cash machines.