Small Business Emergency Working Capital Loan Program

Amount:

$100,000.00

Type of Program:

Loan

Description:

The Government of Prince Edward Island has made funds available to the CBDCs to provide Small Business Emergency Working Capital to help provide relief for the impacts the communities are encountering as a result of the COVID-19 crisis.

Comments on Funding:

Funding takes the form of working capital loans up to $100,000. Interest will apply at a rate of 4%, compounded annually, from the date of the first disbursement. No principal or interest payments are required in the first 12-month period from the date of the first disbursement. The term of the emergency working capital loan shall be six (6) years.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be a small business,
be engaged in business activity,
be a proprietorship, partnership or corporation,
be in good standing as of January l, 2020, if it is a corporation,
be registered with Corporate Registry of PEI Business,
have its primary place of operations in Prince Edward Island,
have existed for a period of at least 12 months as of March 15, 2020,
have been active for a period of 12 months or more as of March 15, 2020,
have been viable and not experiencing liquidity or other financial difficulties as of March 15, 2020,
have been current as of March I, 2020 in any payments owed:

to entities which extended financing to the small business,
under any leases of premises or assets, and,
under any form of security whether registered or not,

be current as of March l, 2020 and not have a default history with respect to government remittances and filings,
have experienced a material adverse effect on business operations on or near March l, 2020 as a result of the COVID-19 EWC,
appear to have a reasonable plan and prospect to remain viable after the COVID-19 Pandemic,
not be engaged in a business which is substantially supported directly or indirectly from public funding.

Application Steps:

Applicants must submit an application and supporting documentation by email to Finance PEI at financepei@gov.pe.ca.

Documentation Needed:

Applicants must submit the following:

1
financial statements for the most recent year end,
2
interim financial statements for the current year to date,
3
detailed listing of what the loan proceeds will be used for and when funding will be needed,
4
statement of Personal Financial Affairs,
5
eligible working capital expense worksheet