Tourism Interest Relief Program
Amount:
$700,000.00
Type of Program:
Interest Relief
Description:
The Tourism Interest Relief Program provides assistance to Island tourism operators. The assistance provided will equal the amount of interest expense incurred or paid on term debt, for each month from April 1, 2020 to September 30, 2022. Assistance will also be provided equal to the amount of unsubsidized interest expense incurred or paid on property taxes for eligible properties for the period from June 1, 2021 to December 31, 2021 in which the tourism operator demonstrates they have been applied for the Canada Emergency Rent Subsidy (CERS).
Comments on Funding:
Eligible companies can receive up to 100% of their interest from their term debt up to $250,000. Once a company hits the $250,000 threshold, only 50% of the company's outstanding term debt interest will be eligible until they reach $700,000.
The maximum cumulative interest relief to be provided to any one business is limited to the lower of:
- 1total revenue reported by the business for income tax purposes in the previous year; or
- 2$700,000.
When It Ends:
Ongoing
Deadline:
September 30, 2022
Eligibility:
Applicants must:
Only non-revolving, term debt incurred on or before April 1, 2020 with a financial institution is eligible for interest relief under the term debt portion of this program.
Application Steps:
must submit the online application and the required supporting documentation,
must complete the online application for "Request Subsequent Relief Payments" for each subsequent month you request relief, if the initial application was approved,
upon approval of the initial application under the Tourism Interest Relief Program, Finance PEI and Tourism PEI will process payment of interest relief with respect to interest on term debt on approved monthly claims submitted.
Documentation Needed:
Applicants must submit:
- 1the completed online application for “Tourism Interest Relief” from Finance PEI and Tourism PEI,
- 2monthly financial statements demonstrating a negative impact in PEI-generated tourism revenues each month via either:
- 3proof of CERS application including subsidy rates in effect for the June 1, 2021-December 31, 2021 period, if applying for property tax interest relief,
- 4completed authorization to release property tax information, if applying for property tax interest relief,
- 5property tax bills for properties used in the applicant’s tourism operation on which they are seeking property tax interest relief, along with a certification that the properties are used in the applicant’s tourism operation, if applying for property tax interest relief,
- 6term debt agreements with financial institutions (including, but not limited to, mortgage documents),
- 7documentation to confirm that debt was incurred for the purpose of earning income on PEI for tourism activities,
- 8completed Tourism Interest Relief Program Pre-Authorization for Credit Transactions Form,
- 9additional documentation might be required.
Program Contact:
