Tourism Financing Assistance - Long Term Loan
Highlights
This program is designed specifically for tourism operators like you in Prince Edward Island. It offers long-term, intermediate-term, and operating loans to help you purchase, expand, or update your business. Whether you need to buy new equipment, construct new facilities, or prepare for the tourist season, this program has you covered.
Key Benefits:
- Flexible Financing: Loans can cover up to 80% of the fair market value of your assets, with terms up to 20 years.
- Comprehensive Coverage: Funds can be used for machinery, equipment, real property, buildings, and more.
- Seasonal Support: Up to 100% financing for pre-season preparation, ensuring you're ready for peak tourist times.
By securing this financing, you can enhance your business's appeal, extend the tourist season, and attract more visitors. The application process is straightforward, and the program is tailored to meet the unique needs of tourism operators in PEI.
Financing Details
Type of Financing:
- Long Term Loan: Capital loans for establishment, expansion, and refurbishment of tourism facilities. Can also be used for debt restructuring.
- Intermediate Term Loan: For improvements to certain assets, excluding vehicles not involved in income/sales.
- Operating Loan: For pre-season preparation of tourist facilities.
Repayment Terms and Interest Rates:
- Long Term Loan: Up to 20 years, depending on the asset's expected life.
- Intermediate Term Loan: Up to 10 years, based on the asset's expected life.
- Operating Loan: Up to 100% financing, mainly for pre-season preparation.
Eligible Expenses:
- Purchase of machinery, equipment, real property, and buildings.
- New construction, expansion, repair, or updating of fixed assets.
- Operating capital for seasonal start-up in the tourism sector.
Ineligible Expenses:
- Vehicles that do not directly contribute to the business's income or sales.
Fees:
- No specific fees mentioned.
Qualifications
- Must carry on business, or intend to carry on business, in Prince Edward Island.
- Must operate a business other than a bed & breakfast establishment.
- Must hold a valid tourism establishment license issued pursuant to the Tourism Industry Act Regulations.
- Upon project completion, must have a minimum 2½ star rating under the Canada Select Accommodation Rating Program.
Accommodation operations must have a minimum of three lodging units once complete.
Disqualifications:
- Bed and breakfast operations as defined by the Tourism Industry Act Regulations.
- Vehicles that do not directly contribute to the business's income or sales.
Description
This program offers your business a great opportunity to grow and improve. You can borrow funds for up to 20 years to purchase, expand, or update your tourism facilities. This includes buying machinery, equipment, real property, and buildings. You can also use the loan for new construction, repairs, and updates to fixed assets.
You can receive up to 80% of the fair market value or purchase price of the assets being financed. For seasonal start-up needs, operating capital is also available. This means you can prepare your tourist facilities before the season begins without financial stress.
The program encourages projects that extend the tourist season, such as recreational complexes with entertainment, lodging, and dining. Accommodation units that convert to other uses in the off-season may also qualify for loans. The goal is to help your business attract more visitors and keep them coming back.
Program Steps
Prepare Business Documentation: Gather the necessary documents for your application. These include:
- Financial statements
- Business plan
- Quotes for equipment or renovation costs
- Details of the intended use of funds
Review Loan Terms and Conditions: Understand the repayment options, interest rates, and amortization periods. Ensure the terms align with your business needs and financial situation.
Complete the Application Form: Fill out the application form provided by Finance PEI. Ensure all sections are completed accurately.
Submit Supporting Documents: Attach the prepared business documentation to your application form. Ensure all documents are clear and complete.
Contact Finance PEI: Reach out to Finance PEI for any assistance or clarification needed during the application process. Use the contact details provided:
- Phone: 902-368-6200
- Email: [email protected]
Submit the Application: Send the completed application form and supporting documents to Finance PEI. This can be done via mail, email, or in person at their office.
Await Review and Approval: Finance PEI will review your application and documentation. They may contact you for additional information or clarification.
Discuss Final Loan Terms: Upon approval, discuss the final loan terms, including the interest rate, repayment schedule, and any associated fees.
Receive Loan Disbursement: Once all terms are agreed upon, the loan funds will be disbursed. You can then proceed with your business project as planned.