Entrepreneur Loan Program
Highlights
This program is designed specifically for business owners like you. It offers up to $100,000 in financing to help you start a new business or expand an existing one. The loan terms are flexible, with repayment periods of up to seven years and an interest rate set at TD Bank prime plus three percent. This makes it a competitive option compared to other financing sources.
Key Benefits:
- Up to $100,000 in financing
- Flexible repayment terms up to seven years
- Competitive interest rate at TD Bank prime plus three percent
- Direct support from Finance PEI
By securing this loan, you can make critical investments in your business, such as purchasing new equipment, improving facilities, or expanding operations. The application process is straightforward, and if approved, you will receive dedicated support from Finance PEI to help you succeed. This program is an excellent opportunity to grow your business and contribute to the local economy.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Loans are available up to $100,000.
- Terms are up to a maximum of seven years.
- Interest is charged at a floating rate of TD Bank prime plus three (3) percent.
Eligible Expenses:
- Investment in new and existing businesses.
- Working capital financing up to $35,000.
- Capital costs, provided Finance PEI receives invoices/receipts, minus refundable taxes.
Ineligible Expenses:
- Pawnbrokers, payday loans, cheque cashing, and white label cash machines.
- Consulting services.
- Grocery/convenience stores.
- Food and beverage services.
- Fishing, farming, and forestry where similar supports already exist.
- Real estate development/brokerage, bed & breakfast/motel/cottage operations, and insurance or business brokerage.
- Schools, charities, religious organizations, and professional/financial services.
Fees:
- No specific fees are mentioned for the application or processing of the loan.
Qualifications
- Must be a resident of Prince Edward Island.
- Must be 18 years of age or older.
- Must be the owner/operator of the business.
- If the business is a partnership, each partner must be a co-applicant.
- For a corporation, each shareholder must be a co-applicant.
- Must have 10% of the total loan available in equity at the time of loan approval.
- Working capital financing will not exceed $35,000.
Funding for capital costs will only be issued when Finance PEI receives invoices/receipts, minus refundable taxes.
Disqualifications:
- Pawnbrokers, pay day loan, cheque cashing, and white label cash machines.
- Consulting businesses.
- Grocery/convenience stores.
- Food and beverage services.
- Fishing, farming, and forestry where similar supports already exist.
- Real estate development/brokerage, bed & breakfast/motel/cottage operations, and insurance or business brokerage.
- Schools, charities, religious organizations, and professional/financial services.
Description
This program offers your business up to $100,000 in loans. You can use this money to start a new business or expand an existing one. It helps you get financing that might not be available otherwise.
Here’s what you can use the loan for:
- Investing in new equipment
- Expanding your business operations
- Improving your current facilities
The loan comes with a maximum term of seven years. The interest rate is set at the TD Bank prime rate plus three percent. This means you get a fair rate based on current market conditions.
Why this is a great opportunity:
- Access to up to $100,000 to grow your business
- Flexible use of funds for various business needs
- Reasonable interest rates and repayment terms
This program is designed to help your business thrive and create jobs in the community. It’s a valuable chance to secure the funding you need to succeed.
Program Steps
Complete the Required Forms:
- Fill out the Entrepreneur Loan application.
- Complete the Business Plan form.
- Prepare the Cash Flow Forecast form with at least two to three years of cash flow projections.
Prepare Documentation:
- Business registration documents.
- Financial statements.
- Proof of equity (10% of the total loan amount).
- Invoices or receipts for capital costs (minus refundable taxes).
Submit Application:
- Submit the completed application and business plan to an account manager at Finance PEI.
Interview with Account Manager:
- Attend an interview with the account manager to discuss your business proposal and next steps.
Obtain Necessary Licenses and Permits:
- Secure any required licenses, permits, and insurance for your business.
Sign Documentation:
- Sign all necessary forms required by Finance PEI, including loan agreements and guarantees.
Open Business Account:
- Open a business account with your financial institution.
- Deposit an amount equal to 10% of the approved loan amount.
Loan Approval and Disbursement:
- Upon approval, review and agree on the final loan terms.
- Receive the loan funds to proceed with your business activities.
Repayment:
- Ensure timely repayment of the loan as per the agreed schedule.
- Repay the full amount immediately if the business is sold or transferred during the loan term.