Micro-Loan Program
Highlights
This program is designed for you. It offers up to $15,000 in financing to help your business grow. Whether you are starting a new venture or expanding an existing one, this loan can provide the working capital you need.
Why Apply?
- Flexible Repayment Terms: Up to 5 years to repay.
- Competitive Interest Rate: TD Bank Prime + 4.5%.
- Wide Range of Uses: From purchasing new tools and equipment to covering professional fees or increasing production.
Benefits to You:
- Easy Qualification: Tailored for tradespeople, newcomers, small-scale food producers, and more.
- Direct Support: Loans sourced directly through Finance PEI.
- Boost Your Business: Immediate access to funds can help you seize new opportunities and meet market demands.
Applying is straightforward. Complete the application, submit it, and discuss your business proposal with an Account Manager. This program is a great opportunity to secure the financing you need to take your business to the next level.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Maximum repayment term: 5 years
- Interest rate: TD Bank Prime + 4.5%
Eligible Expenses:
- Tools and equipment for trades
- Costs for qualification recognition (e.g., challenge exams, professional fees)
- Equipment and materials for small-scale food production
- Start-up costs for new businesses
- Financing for increased production during winter for craft and giftware manufacturers
Ineligible Expenses:
- Funds cannot be used for personal expenses
- Funds cannot be used for non-business-related activities
Fees:
- No specific fees mentioned
Qualifications
- Must be a new or expanding business.
- Must be operating in Prince Edward Island.
- Must be an entrepreneur or small business owner.
- Must have a business plan.
- Must complete the Micro-Loan application, including the Business Plan Section and Cash Flow Forecast.
- Must obtain any necessary licenses, permits, and insurance required for the business.
- Must register the business in accordance with Federal, Provincial, or Municipal Regulations.
- Must sign all appropriate documentation forms required by Finance PEI, including loan agreements and guarantees.
Must be able to repay the loan within a maximum of 5 years at an interest rate of TD Bank Prime + 4.5%.
Disqualifications:
- Business sold or transferred during the term of the guarantee.
- Failure to meet the demand for payment made by Finance PEI.
Description
The Micro-Loan Program offers your business a chance to borrow up to $15,000. This money can be used for various needs such as buying new tools, equipment, or covering professional fees. Whether you are starting a new business or expanding an existing one, this program can provide the financial boost you need.
Key benefits include:
- Flexible Use: The loan can be used for trades, qualification recognition, small-scale food production, business start-up, and winter production financing.
- Affordable Terms: You have up to 5 years to repay the loan at an interest rate of TD Bank Prime + 4.5%.
- Support for Growth: This program is designed to help local entrepreneurs meet their working capital requirements and grow their businesses.
This program is a great opportunity to secure the funds you need to take your business to the next level.
Program Steps
Complete the Application Form: Fill out the Micro-Loan application form, ensuring all sections are completed, including the Business Plan Section and Cash Flow Forecast.
Prepare Documentation: Gather the necessary documents to support your application. You will need:
- Business Plan
- Cash Flow Forecast
- Any necessary licenses and permits
- Proof of business registration
- Insurance documentation
Submit the Application: Submit the completed application and all required documents to an Account Manager at Finance PEI.
Interview with Account Manager: Schedule and attend an interview with the Account Manager to discuss your business proposal and the next steps.
Sign Documentation: Sign all required documentation forms, including loan agreements and guarantees. Be prepared to provide additional guarantors and security if needed.
Obtain Necessary Licenses and Permits: Ensure you have obtained all necessary licenses, permits, and insurance required for your business operations.
Await Approval: Wait for the review and approval of your application by Finance PEI. They will notify you of the decision and any further requirements.
Loan Disbursement: Upon approval, discuss the final loan terms, including the interest rate and repayment schedule. Once agreed, the loan funds will be disbursed to your business.
Repay the Loan: Begin repaying the loan as per the agreed schedule. Ensure timely payments to maintain good standing.
Notify of Business Changes: Inform Finance PEI immediately if the business is sold or transferred during the loan term, or if there are significant changes in the business structure.