Manufacturing and Processing Assistance - Capital Loan
Finance PEI's capital loan covers up to 80% of the purchase price or fair market value of an asset, whichever is less. You repay it over a term of up to 20 years. Use it to buy or refurbish equipment, land or buildings.
“The loan limit will not exceed 80 percent of the fair market value or purchase price, whichever is less.”
From the official program page
Before you spend any money
This is a loan; you must secure approval and arrange financing before purchasing or refurbishing assets.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Is this for you?
- You operate a manufacturing or processing business in Prince Edward Island.
- You need funding to buy or refurbish capital assets like specialized equipment, land, or buildings.
- You can provide security for the loan, typically a first charge on the property or asset.
Probably not the right fit if
- You are not engaged in manufacturing or processing, such as pure retail or service businesses.
- You cannot secure the loan with a first charge on the real property or the asset being financed.
- You are looking for a grant or non-repayable funding, since this is a loan that must be repaid.
How much you'd realistically get
Up to 80% of the asset's purchase price or fair market value, whichever is less. There is no maximum dollar amount on the official page.
What may be supported
- Purchase of specialized manufacturing equipment.
- Refurbishment of production facilities or buildings.
- Purchase of land for manufacturing or processing operations.
- Debt restructuring for manufacturing businesses (in some cases).
How applying works
Effort: moderateYou must contact Finance PEI directly to discuss your project and arrange security; specific application forms are not listed online.
- 01Contact Finance PEI's Commercial and Resource Lending Division at 902-368-6200 or financepei@gov.pe.ca.
- 02Discuss your manufacturing or processing project and confirm eligibility for capital asset purchase or debt restructuring.
- 03Prepare details on the asset's purchase price or fair market value, as financing generally does not exceed 80% of this amount.
- 04Arrange for the loan to be secured by a first charge on the real property or the asset being financed.
- 05Finalize the loan agreement with flexible repayment options aligned to your cash flow, up to a 20-year term.
Who to ask: Phone 902-368-6200; email financepei@gov.pe.ca; 2nd Floor, 94 Euston Street, Charlottetown, PE C1A 7M8
Documents commonly required
- Proof of business engagement in manufacturing or processing in Prince Edward Island.
- Details of the capital asset purchase or refurbishment (purchase price or fair market value).
- Documentation for security (first charge on real property or asset).
- Business financials to support cash flow alignment for repayment (confirm specific requirements on the official page).
What to know before you count on it
- This is a loan, not a grant. You must repay the principal plus interest. The official page does not list the interest rate, so ask Finance PEI.
- The loan is secured by a first charge on the real property or the asset. Other security may be considered in some cases.
- The maximum loan term is 20 years. Ask Finance PEI when the money is paid out.
- Debt restructuring is only available in some cases; confirm eligibility for this specific use on the official page.
What are your odds?
Approval depends on your ability to secure the loan with a first charge and the viability of your manufacturing or processing business.
Frequently asked questions
Is this money free?
No, this is a loan that must be repaid with interest.
What assets can I buy?
You can purchase or refurbish land, buildings, specialized equipment, and in some cases, production inventory.
Do I need to own the land to get the loan?
The loan is secured by a first charge on the real property or the asset. Alternate security may be considered in some cases; confirm details with Finance PEI.
Is there a deadline to apply?
The official page lists no deadline, and lending is ongoing. Ask Finance PEI to confirm before you apply.
More funding by what it pays for
What you can combine it with
Check if this loan can be combined with other provincial or federal manufacturing grants; confirm stacking rules on the official page.
Related programs
BDC: Purchase Order Financing
Up to 90% of costs
A short-term BDC loan that helps Canadian businesses pay suppliers and production costs so they can fill a confirmed customer order when cash flow is…
Checked
Manufacturing and Processing Assistance: Operating Loan (Finance PEI)
Up to 100% of costs
Finance PEI offers term loans to manufacturing and processing businesses in Prince Edward Island for inventory, day-to-day operating costs, and…
Checked
Food and Beverage Industry Financing (FCC)
Farm Credit Canada offers loans to food and beverage businesses anywhere in Canada to build, expand, or equip their operations.
Checked
Worth reading before you apply
Get alerted when this changes
Programs open and close, budgets run out, rules change. We send one short email when something changes that matters for this program.
Page last updated ; status and deadline checked . Source: official program page.