Capital Acquisition Assistance supports Prince Edward Island businesses investing in technology, equipment, and infrastructure needed to grow their business and increase capacity and competitiveness. The program provides businesses with financial assistance to leverage other traditional and non-traditional financing and reduces risk.
Who is eligible for Capital Assistance funding?
To be an eligible applicant, a business must be located in Prince Edward Island and:
- be registered to conduct business and actively operating on Prince Edward Island;
- manufactures, processes, or develops goods or services primarily for export;
- operates within one of these strategic sectors:
- 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.
A business that has a defaulted outstanding debt obligation on file in the Province’s Central Default Registry is not eligible for Innovation PEI assistance.
What activities and costs are supported?
Eligible capital acquisitions may include machinery/equipment, renovations or leasehold improvements directly related to the establishment of a new business or the expansion of an existing business.
What level of assistance is available?
The program provides up to 25 per cent of the eligible costs to a maximum of $25,000 assistance.
The combined project funding from all non-repayable government sources cannot exceed 75 per cent of eligible costs.
What criteria are used to evaluate funding applications?
Not all projects meeting the minimum criteria will receive funding. Applications will also be evaluated on factors that include:
- potential for long-term viability;
- export sales;
- qualifications and track records of managers;
- import substitution;
- economic benefit to the province;
- environmental impact;
- availability of program funds;
- employment creation; and
- level of assistance from other government assistance offered or available.
The project must provide economic benefit to the province of Prince Edward Island.
If the application is approved, Innovation PEI will require acceptance of a letter of offer stating the terms and conditions of approval. When accepted, the letter of offer shall constitute a contract between Innovation PEI and the applicant(s).
How do I apply?
Innovation PEI encourages potential applicants to consult with an Innovation PEI Business Development Officer for guidance on the suitability of the project and the application process. If the project is not a good candidate for Capital Acquisition Assistance, the Business Development Officer may recommend alternative funding programs.
An application must be submitted before any financial or legal commitment is made on the project.
What do I need to apply?
To complete the application, be prepared to provide detailed business information and supporting documents including:
- outline the history and provide a description of the business;
- existing businesses will need detailed Financial Statements for the previous two years;
- new businesses will need a completed business plan;
- description of the proposed project or activity in relation to the products and/or services delivered by the business;
- detailed description of the economic benefits to the organization and to Prince Edward Island;
- detailed information on the estimated costs of the proposed project or activity (cost estimates should be supported by written quotations);
- source of funds for the project (for example, lending institutions, banks, government loans and/or grants);
- explanation of the business's current market position and projected market, outlining any increases in market share; and
- a list of all shareholders and key management personnel.