Manufacturing and Processing Assistance: Operating Loan (Finance PEI)
Finance PEI's operating loans can cover up to 100% of inventory and day-to-day operating costs, and its capital loans up to 80% of the purchase price or fair market value of an asset. You must repay these loans, so ask Finance PEI for the interest rate and terms.
“Up to 100 per cent financing may be provided for purchasing inventory and for the day-to-day operating costs of the business.”
From the official program page
Before you spend any money
This is a loan program with no stated application deadline, but approval must precede spending on assets or inventory.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Is this for you?
- You run a PEI business that transforms raw materials into finished goods.
- You need financing for inventory, daily operating costs, or specialized equipment.
- You can secure the loan with a first charge on real property or the asset itself.
Probably not the right fit if
- You run a service business like a salon or restaurant that does not manufacture physical goods.
- You are looking for a grant or free money, since this is a loan that must be repaid with interest.
- You cannot provide collateral or security for the loan amount.
How much you'd realistically get
Up to 100% of inventory costs or up to 80% of the purchase price or fair market value of capital assets, whichever is less.
What may be supported
- Purchasing inventory for manufacturing or processing operations.
- Buying specialized equipment or machinery for production.
- Refurbishing capital assets used in manufacturing.
- Purchasing land or buildings for manufacturing facilities.
- Day-to-day operating costs directly tied to inventory sales.
What's excluded or restricted
- Intermediate term loans exclude vehicles that do not directly add to the business's income or sales.
How applying works
Effort: moderateYou must contact the Commercial and Resource Lending Division directly to apply, since the official page lists no online form. You will need to provide detailed financial information and security documentation.
- 01Contact the Commercial and Resource Lending Division of Finance PEI by phone at 902-368-6200 or email at financepei@gov.pe.ca to inquire about the loan process.
- 02Prepare documentation proving your business is engaged in manufacturing or processing in PEI, including details on how you alter raw materials to add value.
- 03Gather financial statements and cash flow projections to demonstrate your ability to repay the loan, as operating loans are repaid from inventory sales and capital loans from operational cash flow.
- 04Identify potential security for the loan, such as a first charge on real property or the specific asset being financed, as required for capital loans.
- 05Submit your application and supporting documents to Finance PEI for review and approval before purchasing inventory or assets.
Who to ask: Commercial and Resource Lending Division, 2nd Floor, 94 Euston Street, Charlottetown, PE C1A 7M8; Phone: 902-368-6200; Fax: 902-368-6201; Email: financepei@gov.pe.ca
Documents commonly required
- Proof of business registration and operation in Prince Edward Island.
- Detailed description of your manufacturing or processing methods showing how raw materials are altered to add value.
- Financial statements and cash flow projections to support loan repayment ability.
- Documentation of assets or property available for security, such as property deeds or asset valuations.
What to know before you count on it
- This is a loan, not a grant, so you must repay the principal plus interest. The official page does not list the interest rate. Ask Finance PEI before you apply.
- Capital loans are secured by a first charge on real property or the financed asset, meaning your business assets are at risk if you default.
- Eligibility is strictly limited to manufacturing and processing businesses that alter raw materials to add value; general retail or service businesses do not qualify.
What are your odds?
Approval depends on your business's cash flow, your ability to provide security, and meeting the manufacturing and processing rules.
Frequently asked questions
What types of businesses qualify for this loan?
Only businesses in Prince Edward Island that manufacture or process products by mechanically altering raw materials to add value qualify. Service businesses like restaurants or salons do not qualify.
How much can I borrow for inventory versus capital assets?
You can get up to 100% financing for inventory and day-to-day operating costs. For capital assets, financing generally does not exceed 80% of the purchase price or fair market value, whichever is less.
Is there an interest rate or specific dollar cap?
The official page lists neither. Ask Finance PEI's Commercial and Resource Lending Division for both before you apply.
How do I apply for this loan?
Contact the Commercial and Resource Lending Division of Finance PEI directly by phone, email, or mail to start the application process.
More funding by what it pays for
What you can combine it with
This program may be combined with other Finance PEI programs like the Down Payment Assistance Program or Energy Efficiency Loan Program, but confirm compatibility with the lender.
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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.