Micro-Loan Program
Get up to $15,000 to launch or grow your PEI business with this repayable loan. You must secure approval before spending any money, and interest is TD Prime plus 4.5%.
“Personal information on this form is collected under section 31(c) of the Freedom of Information and Protection of Privacy Act R.S.P.E.I. 1988, c. F-15.O1 as it relates directly to and is necessary for the delivery of the loan program.”
From the official program page
Before you spend any money
You must submit your application and receive approval BEFORE you make any commitments or spend any money.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Is this for you?
- You are a new or expanding business physically located on Prince Edward Island.
- You need funding for working capital, equipment, or start-up costs in trades, food production, or crafts.
- You can provide a business plan, cash flow forecast, and tax returns to support your application.
Probably not the right fit if
- You are located outside of Prince Edward Island.
- You have already purchased the equipment or incurred the costs you want to fund, since approval must precede spending.
- You cannot provide personal guarantees or meet the licensing and insurance requirements.
How much you'd realistically get
Up to $15,000 per applicant.
What may be supported
- Purchasing tools or equipment for tradespeople.
- Covering challenge exams or professional fees for qualification recognition.
- Investing in equipment and materials for small-scale food production.
- General start-up costs for new businesses.
- Financing to increase production of craft and giftware products during winter months.
How applying works
Effort: moderateYou need to prepare a business plan, a cash flow forecast, and gather financial statements or tax returns with CRA Notices of Assessment.
- 01Complete the Micro-Loan application form, including the Business Plan Section.
- 02Complete the Cash Flow Forecast form.
- 03Gather supporting documents, including financial statements or tax returns with CRA Notice of Assessment.
- 04Submit the completed application and documents to an Account Manager with Finance PEI.
- 05Participate in an interview with the Account Manager to discuss your proposal and determine eligibility.
Who to ask: Phone: 902-368-6200 (General Inquiries/Development Lending); Email: financepei@gov.pe.ca; Address: 2nd Floor, 94 Euston Street, Charlottetown, PE C1A 7M8. Finance PEI Officer contact for personal info questions: 902-368-6300.
Documents commonly required
- Completed Micro-Loan application form with Business Plan Section.
- Cash Flow Forecast form.
- Financial statements or tax returns with CRA Notice of Assessment.
- Proof of business registration and necessary licenses/permits/insurance.
What to know before you count on it
- This is a loan, not a grant; you must repay the full amount plus interest.
- The interest rate is TD Bank Prime + 4.5%, which can be higher than standard commercial rates.
- Repayment terms are up to 5 years, but specific terms depend on your agreement.
- You must sign loan agreements and guarantees for each individual with ownership; additional guarantors may be required.
What are your odds?
Approval depends on your business proposal, financial health, and ability to secure necessary licenses and insurance.
Frequently asked questions
Is this money taxable?
Loan proceeds are generally not taxable income, but interest payments may be tax-deductible. Confirm with your accountant.
Can I use this for existing debt?
The program focuses on working capital, equipment, and start-up costs. The official page does not say whether you can use it to pay existing debt. Ask Finance PEI before you apply.
Do I need a guarantor?
You must sign loan agreements and guarantees for each individual with ownership. Additional guarantors and security may be required.
What you can combine it with
This program is distinct from the Down Payment Assistance Program or Entrepreneur Loan Program; check if you qualify for multiple streams.
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.