Equity Investors Incentive
Highlights
The Equity Investors Incentive is designed for businesses like yours to attract private sector investment. This program offers a non-repayable incentive to investors, making it easier for you to secure the funding you need. By increasing the return on investment for your investors, it becomes more appealing for them to invest in your business.
What You Get
- Up to 20% rebate on the purchase price of equity investments
- Maximum rebate of $200,000 per approved investee company
Benefits to Your Business
- Reduce reliance on conventional debt and ease cash flow burdens
- Support for expansion, diversification, and product development
- Inject technical and managerial expertise into your company
This program is easier to qualify for than many others, and being approved can significantly boost your business's growth and stability. Apply now to take advantage of this valuable opportunity.
Financing Details
Type of Financing: Non-repayable Incentive
Repayment Terms and Interest Rates:
- No repayment required.
- No interest rates apply.
Eligible Expenses:
- Equity investments in approved Prince Edward Island-based investee companies.
- Funds can be used to support expansion, diversification, product development, or commercialization.
- Can reduce the need for conventional term debt and working capital financing.
- Can ease monthly cash flow burdens for small businesses.
- Can inject technical and managerial expertise into Island-based companies.
Ineligible Uses of Funds:
- Funds cannot be used for any purposes outside the approved equity investments.
- Cannot be used for personal expenses or non-business-related activities.
Fees:
- No fees associated with the program.
Qualifications
- Must consult with Innovation PEI prior to submitting an application.
- Must be a taxable, private Canadian corporation.
- Must be registered to do business in Prince Edward Island.
- Must have its head office and primary business operations in Prince Edward Island.
- Must have been in operation in PEI for a minimum of one year.
- Must be a provider of exportable goods or services in one of the following 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.
- Must pay at least 75% of its payroll to employees residing in Prince Edward Island.
- Must have fewer than 50 employees.
- Must have assets less than $10 million.
- Must ensure compliance with securities legislation.
Must have a well-developed business plan and demonstrate appropriate use of funds raised to support expansion and/or ongoing operations in Prince Edward Island.
Disqualifications:
- Businesses with any defaulted outstanding debt obligation on file in the Government of Prince Edward Island Central Default Registry.
- New project submissions from an applicant in default on any reporting, project completion, or financial obligation to Innovation PEI until a resolution to the default is reached.
Description
This program offers a non-repayable incentive to attract private sector investment in your business. You can receive up to 20% of the purchase price of the equity investment, with a maximum rebate of $200,000. This means more funds for your business without the burden of repayment.
The money can be used to:
- Reduce the need for traditional loans and working capital financing.
- Support expansion, diversification, product development, or commercialization.
- Ease monthly cash flow burdens for your business.
- Inject technical and managerial expertise into your company.
To benefit from this program, your business must comply with specific conditions, including a four-year monitoring period. During this time, you must provide annual reports and financial statements. If your business redeems the shares within this period, the incentive must be repaid.
This program is a great opportunity to boost your business’s financial health and growth potential.
Program Steps
Consult with Innovation PEI: Before starting your application, consult with Innovation PEI to discuss your business and the program details.
Download and Review Guidelines: Download the Equity Investors Incentive Guidelines from the Innovation PEI website. Review them thoroughly to understand the program requirements and benefits.
Prepare Documentation: Gather the necessary documents for your application. These include:
- Business plan
- Financial statements
- Proof of business registration in Prince Edward Island
- Details of your business operations and payroll
- Information on your exportable goods or services
- Any other documents that demonstrate compliance with the program criteria
Complete the Application Form: Fill out the Equity Investors Incentive application form available online. Ensure all sections are completed accurately.
Submit the Application: Submit your completed application form along with the required documentation to Innovation PEI. This can be done online or through the contact details provided.
Enter into a Contract: If your application is approved, you will receive a letter of offer. Accept the offer to enter into a contract with Innovation PEI.
Monitor and Report: Once approved, you must complete a yearly reporting questionnaire, provide yearly financial statements, and a notarized record of all share transactions for four years. Ensure compliance with the Securities Act (Prince Edward Island) and other program requirements.
Maintain Communication: Stay in contact with Innovation PEI for any additional information or assistance needed throughout the program period.