Tourism Product Diversification and Marketing Program — Business Planning and Transition Assistance
Highlights
This program is a fantastic opportunity for your business. It offers up to $1,000,000 in financing, with an additional $150,000 available for software or daily operating costs. These funds can be used for a variety of needs, including operating expenses, restorations, new equipment, and software. The flexibility in how you can use the funds ensures that you can address the specific needs of your business.
One of the key benefits of this program is that it is backed by the government, providing you with a level of security and trust that other loans may not offer. Additionally, you have the freedom to choose how you repay the loan, with terms extending up to 15 years. This makes it easier to manage your cash flow and plan for the future. The application process is straightforward, making it accessible for businesses like yours.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Repayment Term: Up to 10 years.
- Interest Rate: Fixed at 3.5% per annum.
- Grace Period: No payments required for the first 6 months.
Eligible Expenses:
- Purchase of new or used equipment.
- Leasehold improvements.
- Working capital for day-to-day operations.
- Research and development costs.
- Marketing and promotional expenses.
Use of Funds:
- Funds cannot be used for personal expenses.
- Funds cannot be used for real estate purchases.
- Funds cannot be used to refinance existing debts.
Fees:
- Application Fee: $150, non-refundable.
- Origination Fee: 1% of the loan amount, deducted from the disbursement.
- Late Payment Fee: 2% of the overdue amount per month.
Qualifications
- Must be a small or medium-sized enterprise (SME).
- Must have a Canada Revenue Agency Business Number.
- Business must be operating in Prince Edward Island.
Currently exporting or planning to start exporting.
Disqualifications:
- Businesses in the retail/wholesale sector.
- Real estate businesses.
- Government services.
- Personal or social services.
- Softwood lumber industry.
- Professional services such as marketing firms, creative agencies.
Description
This program offers your business a chance to borrow up to $1,000,000. You can use up to $500,000 of this amount to buy equipment or improve your rented space.
You can spend this money on:
- Commercial kitchen appliances
- Manufacturing machinery
- Computers and IT infrastructure
- Renovating a retail space
For other costs like software or working capital, the program can provide up to $150,000.
The federal government guarantees 85% of the loan, giving you a significant safety net.
This loan program is flexible. If you have made eligible purchases in the last 365 days, you can include them in this loan.
You have several options for repayment. You can choose a variable interest rate, a fixed one, or a combination.
You have up to 15 years to pay back the loan, no matter what you spend it on.
Program Steps
Gather Required Documentation: Prepare the necessary documents to support your application. You will need:
- Business financial statements
- Business plan
- Tax returns
- Proof of business registration
- Identification documents for business owners
- Any other relevant documents specific to your business
Complete the Application Form: Fill out the application form provided by the program. Ensure all fields are completed accurately and thoroughly.
Review Application Requirements: Double-check the program's specific requirements and guidelines to ensure your application meets all criteria.
Submit the Application: Submit your completed application form along with the required documentation. This can usually be done online or via mail, depending on the program's submission process.
Follow Up: After submission, follow up with the program's contact point to confirm receipt of your application and to address any additional questions or requirements.
Await Approval: Wait for the program administrators to review your application. They may contact you for further information or clarification.
Receive Notification: Once your application is reviewed, you will receive a notification regarding the approval status. If approved, you will receive further instructions on the next steps.
Implement Program Benefits: Upon approval, follow the provided guidelines to implement the benefits of the program for your business. This may include receiving funds, resources, or other support as outlined by the program.