Telecommunications

Business Investment Fund – Business Investment Program

by Maurice | February 6, 2023

Amount:

$1,000,000.00

Type of Program:

Loan & Investment

Description:

The Business Investment Program provides term loans and equity investments to Newfoundland and Labrador SMEs in strategic growth sectors as identified by Industry, Energy and Technology (IET). The fund is also available to businesses which have export potential and require assistance to enter or expand in external markets.

Funds are provided to complement funding from conventional sources, where a need has been demonstrated, and are also intended to increase the capital base of businesses allowing them to leverage new private-sector investments.

Comments on Funding:

Funding is in the form of repayable term loans at the department's base rate of 4,5%.

Equity funding is in the form of redeemable preferred shares to a maximum of $500,000 per project and a maximum aggregate of $1 million is available.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be a SME based and operating in Newfoundland and Labrador having fewer than 100 employees and less than $10 million in sales,
demonstrate its ability to undertake the work identified in the project proposal,
demonstrate its ability to access the financial capital required to complete the project,
operate in a strategic sector as defined by IET,
be in good standing with the Government of Newfoundland and Labrador.

Strategic sectors: Advanced Technologies, Aerospace, Agri-foods, food and beverage, Aquaculture, Biotechnology and Life Sciences, Craft, Gift and Apparel, Energy, Environmental Industries, Fishery (excludes fish harvesting and primary processing), Forest Products, Information and Communications, Technology, Manufacturing, Ocean Technology, Mineral Resources, Natural Stone, and Tourism and Cultural Industries.

Application Steps:

The applicant must submit a signed, completed application with supporting documentation to the office of Industry, Energy and Technology (IET) in his area.

Documentation Needed:

The applicant must submit:

the application form,
a business plan and project summary & Benefits,
financial statements for the current and previous two to five years of operation including notes to the financial statements and the most recent interim statements. If a proprietorship, include recent and previous two to five years personal income tax returns including CRA T2125 form and Notice of Assessment, if an existing business,
a copy of the Articles of Incorporation,
a Personal Net Worth Statement for all shareholders and key management personnel (loans/equity investments only),
a Cash Flow Statement and pro forma statements for the next two to five years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts, if an existing business,
Income Statement and Opening Balance Sheet, a Cash Flow Statement and pro forma statements for the next two years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts, if a new business,
any supplementary information that may be relevant to his operation.

For larger, more complex projects a more detailed Business Plan, a Feasibility Study and/or Market Study may be required.

Program Contact:

Business Investment Program

Application for Assistance

Capital Acquisition Assistance

by Maurice | February 6, 2023

Amount:

$25,000

Type of Program:

Grants

Description:

Capital Acquisition Assistance supports Prince Edward Island businesses investing in technology, equipment, and infrastructure needed to grow their business and increase capacity and competitiveness.

Comments on Funding:

The program provides up to 25 per cent of the eligible costs to a maximum of $25,000 assistance.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be a Prince Edward Island business,
be registered to conduct business and actively operating in Prince Edward Island,
be manufacturing, processing, or developing goods or services primarily for export,
operate within one of these strategic sectors: bioscience, aerospace and defence, advanced manufacturing and processing, renewable energy and clean technology, information and communications technology, creative and cultural industries (first-of-its-kind exportable goods or services in other sectors may be considered),
not have a defaulted outstanding debt obligation on file in the Province’s Central Default Registry.

Application Steps:

consult with an Innovation PEI Business Development Officer for guidance on the suitability of the project and the application process,

complete the online application form.

Documentation Needed:

The applicant must submit:

1
the online application form,
2
a description of the business and an outline of its history,
3
detailed Financial Statements for the previous two years, if existing business,
4
a completed business plan, if a new businesses,
5
a description of the proposed project or activity in relation to the products and/or services delivered by the business,
6
a detailed description of the economic benefits to the organization and to Prince Edward Island,
7
detailed information on the estimated costs of the proposed project or activity,
8
source of funds for the project,
9
explanation of the business's current market position and projected market, outlining any increases in market share,
10
a list of all shareholders and key management personnel.

Program Contact:

Capital Acquisition Assistance

Enriched Investment Tax Credit

by Maurice | February 6, 2023

Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The Enriched Investment Tax Credit adds to the existing PEI Investment Tax Credit of 10%. It is applied to certain capital investments by manufacturing and processing companies. An enriched tax rebate for an additional 25% tax credit will be available for manufacturing and processing companies that invest in qualified property to implement high-productivity applications with a strong export focus.

Comments on Funding:

Funding is a tax rebate for an additional 25% tax credit.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be located in Prince Edward Island,
be registered to do business and actively operating in Prince Edward Island,
manufacture, process, or develop goods or services primarily for export,
intend to make a qualified investment in qualified property to implement high-productivity applications with a strong export focus,
not have a defaulted outstanding debt obligation on file in the Province’s Central Default Registry,
operate within one of these strategic sectors: bioscience, aerospace and defence, advanced manufacturing and processing, renewable energy and clean technology, information and communications technology, creative and cultural industries (first-of-its-kind exportable goods or services in other sectors may be considered).

Application Steps:

are encouraged to consult with an Innovation PEI Business Development Officer for guidance on the suitability of the project and the application process,

must claim the 10% investment tax credit without reference to government beyond the completion of the appropriate form with their corporate income tax return,

must apply for the additional 25% tax rebate under the Enriched Investment Tax Credit through Innovation PEI, prior to purchasing the qualified property,

must accept the Letter of Offer, if offered,

must submit a cost summary to verify the amount of the qualifying property, on completion of the purchase and implementation of the machinery and equipment investment. Once the amount of qualifying property has been confirmed, the amount of the tax credit will be calculated,

must submit the company’s annual income tax filing and notice of assessment, to Innovation PEI, for the rebate cheque to be issued.

Documentation Needed:

Applicants must submit:

1
the online application form,
2
a description of the business and an outline of its history,
3
Financial Statements for the previous two years, if existing business,
4
a completed business plan, if new businesses,
5
description of the proposed project or activity in relation to the products and/or services delivered by the business,
6
detailed description of the economic benefits to the organization and to Prince Edward Island,
7
detailed information on the estimated costs of the proposed project or activity (cost estimates should be supported by written quotations),
8
source of funds for the project (for example, lending institutions, banks, government loans and/or grants),
9
explanation of the business's current market position and projected market, outlining any increases in market share,
10
a list of all shareholders and key management personnel.

Other Things to Note:

No other details available.

Program Contact:

Enriched Investment Tax Credit

Enriched Investment Tax Credit Guidelines

Equity Investors Incentive

by Maurice | February 6, 2023

Amount:

No Fixed Amount

Type of Program:

Rebate

Description:

The Equity Investors Incentive provides new and expanding businesses in Prince Edward Island with a tool to encourage and attract private sector investment. The program provides a non-repayable incentive to investors to encourage investment in an approved Prince Edward Island-based investee business by increasing the return-on investment to investors.

Comments on Funding:

Funding is in the form of a direct rebate to investors (individuals or companies) and is calculated at up to 20 percent of the purchase price of the equity investment in the investee company. The maximum investors’ rebate for all eligible investors will not exceed $200,000 per approved investee company.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

An eligible investee company must:

be a taxable, private Canadian corporation,
be registered to do business in Prince Edward Island,
have its head office and its primary business operations in Prince Edward Island,
have been in operation in PEI for a minimum of one year,
be a provider of exportable goods or services in one of the following strategic sectors: bioscience, aerospace and defense, advanced manufacturing and processing, renewable energy and clean technology
information and communications technology, creative and cultural industries (first-of-its-kind exportable goods or services in other sectors may be considered),
pay at least 75% of its payroll to employees residing in Prince Edward Island and must have ewer than 50 employees,
have assets less than $10 million,
ensure compliance with securities legislation,
have a well-developed business plan and demonstrate appropriate use of funds raised to support expansion and/or ongoing operations in Prince Edward Island,
not have any defaulted outstanding debt obligation on file in the Government of Prince Edward Island Central Default Registry.

Eligible investors include: any Canadian person, Canadian-controlled private corporation or other Canadian-controlled company that is at arm’s length to the investee company as defined under Section 251 of the Income Tax Act (Government of Canada).

Application Steps:

Applicants:

must submit the online application form,

must accept the letter of offer forwarded to them which shall create a contract between Innovation PEI and the applicants.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

Equity Investor Incentive Guidelines will be available soon upon approval.

Program Contact:

Equity Investors Incentive

Innovation Fund

by Maurice | February 6, 2023

Amount:

$50,000.00

Type of Program:

Grants

Description:

The Innovation Fund assists businesses to bring a new product, service, or process (“product”) to market by providing financial support for the costs to refine and commercialize an innovative product that has demonstrated potential for export market uptake.

The Innovation Fund has two streams:

1
The New Product stream can support the transition from a demonstrated beta/pilot/prototype product to the final stage refinements for scale-up and full commercial development of the product.
2
The Product Diversification stream can support the adaptation of an existing product for a new market segment, where refinement and enhancement changes are required to function in a new geographical area, vertical or industry (to adjust to different requirements, such as regulatory/legal, business environment, industry requirements, culture, etc.).

Comments on Funding:

The Innovation Fund provides up to 50 per cent of eligible costs to a maximum of $50,000 in assistance per approved project. The Innovation Fund may be accessed once per product; the business should consider the stage at which the support will be most beneficial.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be registered to conduct business and actively operating in Prince Edward Island,
export products that it manufactures, processes, or develops,
operate within one of these strategic sectors: bioscience, aerospace and defence, advanced manufacturing and processing, renewable energy and clean technology, information and communications technology, creative and cultural industries (first-of-its-kind exportable goods or services in other sectors may be considered),
not have a defaulted outstanding debt obligation on file in the Province’s Central Default Registry.

Application Steps:

are encouraged to consult with an Innovation PEI Business Development Officer for guidance on the suitability of the project and the application process,

must submit their application forms to be reviewed by Innovation PEI before any financial or legal commitment is made on the project,

must accept the letter of offer forwarded to them which shall create a contract between Innovation PEI and the applicants.

Documentation Needed:

The applicant must submit:

1
the online application form,
2
a description of the business and an outline of its history,
3
detailed Financial Statements for the previous two years, if existing business,
4
a completed business plan, if a new businesses,
5
a description of the proposed project or activity in relation to the products and/or services delivered by the business,
6
a detailed description of the economic benefits to the organization and to Prince Edward Island,
7
detailed information on the estimated costs of the proposed project or activity,
8
source of funds for the project,
9
explanation of the business's current market position and projected market, outlining any increases in market share,
10
a list of all shareholders and key management personnel.

Other Things to Note:

No other details available.

Program Contact:

Innovation Fund

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