The newly revised Entrepreneur Loan Program is an initiative of the Province of Prince Edward Island designed to help increase the availability of financing 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 per cent of the loan request less the recoverable taxes
• to stimulate economic growth and create jobs for Islanders

Entrepreneur Loan Program is designed to assist small businesses throughout the Province of Prince Edward Island providing entrepreneurs with up to $100,000 for use as an investment in new and existing Prince Edward Island businesses. Loans will now be sourced directly through Finance PEI with terms up to a maximum of 7 years. Interest is charged at a floating rate of TD Bank prime plus 3 per cent.


Eligibility Requirements

1. The applicant must be a resident of Prince Edward Island, be 18 years of age or older, and be owner/operator of the business.
2. If the business is a partnership, each partner must be a co-applicant, for a Corporation, each shareholder must be a co-applicant.
3. At the time of the loan approval, the applicant(s) must have the availability of a cash equity contribution in the business equal to 10 per cent of the loan.
4. Working capital financing will not exceed $25,000. Funding for capital costs will only be disbursed upon the Finance PEI's receipt of eligible receipts/expenses less refundable taxes.
5. Specific activities within these sectors which are considered ineligible for financing include:
   • Pawnbrokers, pay day loan, cheque cashing and white label cash machines
   • Consulting
   • Grocery/convenience stores
   • Food and beverage services
   • Fishing, farming and forestry where similar programs already exist
   • Real estate development/brokerage, bed & breakfast/motel/cottage operation and insurance or business brokerage
   • Schools, charities and religious organizations and professional/financial services

Application Procedure

1. Complete the Entrepreneur Loan application, prepare and attach a detailed Business Plan with a minimum of 2-3 years cash flow projections to support your request.
2. Submit the completed application and business plan to an Account Manager with Finance PEI. The Account Manager of Finance PEI will conduct an interview with the applicant(s) to discuss the business proposal and the next steps required to determine eligibility.

Borrower Requirements - If your loan is approved, you are required to:

1. Obtain any necessary licenses, permits and insurance required for your business and register the business in accordance with Federal, Provincial or Municipal Regulations.
2. 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.
3. Open a business account with your financial institution and deposit an amount equal to 10 per cent of the approved loan amount.     
4. A loan application fee equal to 2 per cent of the loan amount is due at the time of loan approval payable to Finance PEI. The loan application fee may be added to the approved loan amount, however will be deducted from the first advance.
5. Repay immediately the full amount of the outstanding loan should the business be sold or transferred during the term of the guarantee, or if the demand for payment is made by Finance PEI.

For More Information 

If you have questions about eligibility requirements, borrower requirements, or the application process, please contact one of our Finance PEI Staff. 

Email:  [email protected]