No Fixed Amount
Type of Program:
The Multi-Unit Residential Loan Program provides loans to property developers which will assist in the construction of multi-unit residential developments on PEI. A multi-unit development consists of 2 or more units.
Comments on Funding:
Funding will be up to a maximum of $4M, with up to a maximum of 90% loan to value for new construction and up to a maximum of 80% of loan to value for renovations.
There will be a 4% fixed interest rate for up to a 10 year term amortized over 25 years (30 years on exception in rural areas).
Loan may be prepaid at any time, without penalty.
Securities are required: first position mortgage, and unlimited personal guarantees.
The borrower and guarantor must provide their covenant/guarantee for 100% of the loan for deficiency after enforcement of security.
When It Ends:
complete and submit an application and relevant business plan and projections to an account manager with Finance PEI,
participate at an interview with the account manager to discuss the business proposal and the next steps to determine eligibility.
Applicants must submit:
- 1an application,
- 2business plan or “business plan form”,
- 3current “statement of personal financial affairs form” for all shareholders and any proposed third party guarantors,
- 4accountant prepared financial statements including balance sheets and income statements for last three years,
- 5aged listing of accounts receivable and accounts payable ,
- 6written verification of all debt outstanding with major creditors (“credit verification form” to be completed by your major creditors),
- 7detailed list and estimated value, of land, buildings, and equipment owned (include the applicable provincial id number(s)),
- 8resume of owners (new applicant),
- 9copy of letters of patent or articles of incorporation,
- 10income tax returns for the last three years for each individual partner, if a sole proprietor/partnership,
- 11a copy of the trade name registration, if operating under a trade name,
- 12breakdown of working capital requirements to include cashflow projections for remainder of current year and next year, if applicable,
- 13interim financial statements for current year to date, current aged accounts receivable, accounts payable and projected to year end, if applicable,
- 14details of current inventory, if applicable,
- 15copy of purchase and sale agreement, if applicable,
- 16copy of legal description and survey of real property being purchased, if applicable,
- 17written cost estimates for new construction and/or renovations. other information pertinent to the request, if applicable,
- 18other information pertinent to the request.