Government of Prince Edward Island Small Business Emergency Working Capital Program
The Government of Prince Edward Island and Community Business Development Corporations (CBDCs) understand the difficulties the COVID-19 pandemic has caused businesses in our communities. As a result, the Government of Prince Edward Island has made funds available to the CBDC s to provide Small Business Emergency Working Capital to help provide relief for the impacts our communities are encountering as a result of this crisis.
Small business owners impacted by the COVID-19 pandemic can apply for working capital loans up to $100,000 through the Small Business Emergency Working Capital Program.
Businesses will not be required to pay interest for the first 12 months. Interest payments will accrue in months 1-12. Principal and interest payments will begin in month 13.
General Details:
- Be engaged in business activity;
- Be a proprietorship, partnership or corporation;
- If the business is a corporation, the corporation must be in good standing as of January l, 2020;
- The business must be registered with Corporate Registry of PEI Business;
- The small business must have its primary place of operations in Prince Edward Island;
- The small business must have:
- existed for a period of at least 12 months as of March 15, 2020. In cases of changes in structure over the preceding 12 months, a business shall meet the requirement of this condition if at least one of the owners has been consistent for the 12-month period;
- been active for a period of 12 months or more as of March 15, 2020. A business which operates on a seasonal basis may qualify as being active provided it conducted seasonal business operations (to the extent that is consistent with the industry standards in Prince Edward Island for the particular type of business) throughout the 12-month period prior to March 15, 2020; and
- Been viable and not experiencing liquidity or other financial difficulties as of March 15, 2020.
- The small business must have been current as of March I, 2020 in any payments owed:
- to entities which extended financing to the small business; ii) under any leases of premises or assets; and iii) under any form of security whether registered or not;
- The small business must be current as of March l, 2020 and not have a default history with respect to government remittances and filings (including HST, Corporate Tax, payroll remittances, worker's compensation remittances, municipal taxes and assessments and all other remittances and payments required under statute or regulation);
- The small business must have experienced a material adverse effect on business operations on or near March l, 2020 as a result of the COVID-19 EWC;
- The small business must, based on the information available, appear to have a reasonable plan and prospect to remain viable after the COVID-19 Pandemic; and,
- Is not engaged in a business which is substantially supported directly or indirectly from public funding.
Interest Rate: 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.
Loan Amortization – The term of the emergency working capital loan shall be six (6) years. Interest shall accrue for the first year, and thereafter the Loan shall be amortized over the remaining 5 years (60 months) of the term. Detailed eligibility information can be requested of the Community Business Development Corporation.
For more information on the Small Business Emergency Working Capital Program or to apply, please click on the link below to start the online application process.
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Prince Edward Island: |
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Please note: this program is only available in the province of Prince Edward Island.
Please note: We are currently experiencing a higher than usual number of inquiries and loan applications, which could lead to longer than normal wait times. If you have received an email notification, that is confirmation we have received your application and are working on your request. Rest assured a CBDC representative will contact you soon. Thank you for your cooperation and understanding.