Government of Prince Edward Island

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:

1
total 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:

be for-profit corporations, partnerships and sole proprietorships operating within one of the following sectors:

licensed tourism accommodations used primarily for business activity (e.g. hotel, motel, bed and breakfast, inn, resort, cottage operations, campgrounds);
food and beverage service (e.g. restaurant, bar, brewery);
local artisans and artists (e.g. pottery, artwork);
locally-owned retail and gift shops that cater primarily to tourism;
attractions (e.g. museum);
tourism service/experience providers;
event companies;
adventure (e.g. kayaking, amusement park, golf); and/or
tour operators.

demonstrate either:

a minimum 30% decrease in tourism related revenues from operations located in Prince Edward Island compared to the same month in the prior year; or
that the operation had no tourism revenue.

have the physical tourism operation and head office located on Prince Edward Island.

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:

1
the completed online application for “Tourism Interest Relief” from Finance PEI and Tourism PEI,
2
monthly financial statements demonstrating a negative impact in PEI-generated tourism revenues each month via either:

a minimum 30% decrease in tourism related revenues from PEI operations compared to the same month in the prior year; or
no tourism revenue for the month.

3
proof of CERS application including subsidy rates in effect for the June 1, 2021-December 31, 2021 period, if applying for property tax interest relief,
4
completed authorization to release property tax information, if applying for property tax interest relief,
5
property 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,
6
term debt agreements with financial institutions (including, but not limited to, mortgage documents),
7
documentation to confirm that debt was incurred for the purpose of earning income on PEI for tourism activities,
8
completed Tourism Interest Relief Program Pre-Authorization for Credit Transactions Form,
9
additional documentation might be required.

Program Contact:

Tourism Interest Relief Program

Fishers Low-Interest Loan

Amount:

$500,000.00

Type of Program:

Loan

Description:

The Fishers Low Interest Loan assists Prince Edward Island fishers experiencing financial difficulties due to the uncertainty surrounding the global markets for this product.

Comments on Funding:

Funding is a loan with a 4 per cent interest rate for a 5 year term, amortized over a 15 year period, to a maximum loan amount of $500,000. Finance PEI will require a first position security interest over all fishing-related assets including all fishing licenses. Other security deemed necessary by Finance PEI may be required.

When It Ends:

Ongoing

Deadline:

July 31, 2022

Eligibility:

Applicants must:

hold a valid Prince Edward Island-based lobster license during the 2020 fishing year,
have a net income on a cash basis for tax purposes of less than $60,000 per year, based on the information contained in the Statement of Fishing Activities, as reported in their 2019 or 2020 income tax filing,
be current clients of Finance PEI,
be fishers in lobster fishing area 24, 25 and 26A.

Only fishing-related assets purchased before April 1st, 2020 will be considered as eligible expenses.

Program Contact:

Fishers Low Interest Loan

Emergency Working Capital Financing

Amount:

$100,000.00

Type of Program:

Loan

Description:

The Emergency Working Capital Financing provides emergency working capital financing to assist PEI’s small business during this unprecedented economic disruption to business, caused by the Covid-19 pandemic. This loan program is to assist qualifying companies maintain normal business operations during these difficult times.

Comments on Funding:

Funding is up to $100,000 with a fixed interest rate of 4% per annum to be used to assist with fixed operating costs (including payroll, rent, utilities etc) with principal & interest payments deferred for a minimum of 12 months.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be an existing small businesses (startups not eligible) located and operating in the Province of PEI, and have been generating revenue on PEI,
be registered to conduct business within the Province of PEI,
have a satisfactory credit rating,
not have any defaulted outstanding debt obligation on file in the Province’s Central Default Registry.

Application Steps:

must submit an application and supporting documentation to Finance PEI,

will be issued a Letter of Offer outlining the complete terms and conditions of the loan, if successful.

Documentation Needed:

Applicants must submit:

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 (personal net worth statement) from all applicable shareholders,
5
eligible working capital expense worksheet.

Ongoing financial reporting will be required.

Program Contact:

Emergency Working Capital Financing

Potato Financing Program

Amount:

No Fixed Amount

Type of Program:

Loan

Description:

The Potato Financing Program provides assistance to eligible PEI Potato farmers impacted from the recent suspension of both seed and fresh table stock potatoes entering the United States through a joint partnership of Finance PEI and the Department of Agriculture and Land.

Comments on Funding:

Funding is a loan that will have a 5-year term with a 4% interest rate, amortized over a maximum of 25 years. The maximum loan to any one group of related companies is $5M.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

Applicants must:

have existing farming activities (startups are not eligible) located and operating in the Province of PEI,
have harvested a potato crop in the 2021 calendar year,
be registered to conduct business within the Province of PEI,
have a satisfactory credit rating and must not have any defaulted outstanding debt obligation on file in the Province's Central Default Registry.

Application Steps:

Applicants must submit the completed application and any other required supporting documentation to Finance PEI.

Documentation Needed:

Applicants must submit:

1
the completed application form,
2
most recent year-end financial statements,
3
most recent listing of Accounts Payable,
4
most recent property tax bill,
5
the amount of ‘fresh’ potatoes in storage under contract for processing, table stock and seed in CWT.

Other Things to Note:

The program will be administered through Finance PEI and the Department of Agriculture and Land.

Program Contact:

Potato Financing Program

potato_financing_program_application_form.pdf

PEI Pollination Expansion Program

Amount:

No Fixed Amount

Type of Program:

Grants

Description:

The PEI Pollination Expansion Program supports the sustainable increase of local honey bee colonies that are available for the pollination of wild blueberries and other fruit crops and the advancement of the beekeeping sector through strategic industry initiatives, including investment in infrastructure.

Comments on Funding:

Funding is a 75% assistance:

1
to a maximum of $30 per individual honey bee queen for the purchase of eligible imported international honey bee queens,
2
to a maximum of $30 per individual honey bee queen for the purchase of eligible domestic honey bee queens,
3
to a maximum of $200 for the purchase of queen rearing equipment,
4
to a maximum of $175 per individual nucleus, split, or out-of-province full colony,
5
to a maximum of $150 per individual in-province full colony for full colonies from PEI beekeepers exiting the honey beekeeping sector,
6
to a maximum of $175 per individual bee package for the purchase of eligible package,
7
to a maximum of $15 per new shallow, medium, or deep hive box,
8
to a maximum of $30 per one hive box, worth of new frames (to a maximum of ten frames).

Funding is up to 75% assistance:

1
to a maximum of $20,000, for industry priority bee research,
2
to a maximum of $20,000, for miscellaneous beekeeping technology or expenses that have a direct impact in upgrading a particular beekeeping operation or the advancement of the sector as a whole.

When It Ends:

Ongoing

Deadline:

March 31, 2022

Eligibility:

Applicants must be:

Mi’kmaq first nations or indigenous organizations who are beekeepers,
PEI beekeepers,
The PEI Beekeepers Association,
PEI Government Departments.

Application Steps:

Applicants must submit their completed applications via regular mail or email to the attention of the Provincial Apiarist.

Documentation Needed:

Applicants must submit:

1
the completed application form,
2
a project proposal.

Other Things to Note:

This program is effective April 1, 2021 and will terminate on March 31, 2022. This program may be altered or discontinued without notice by the Minister of Agriculture and Land.

Program Contact:

PEI Pollination Expansion Program

af_peipep_guide.pdf

af_peipep_application.pdf