Tourism Financing Assistance: Long-Term Loan (Finance PEI)
Finance PEI lends to licensed tourism operators to expand or to cover pre-season operations. Long-term loans cover up to 80% of asset value and operating loans up to 100% of operating costs. This is a loan you must repay. Ask Finance PEI for current interest rates and terms.
“Loans shall not generally exceed 80 per cent of the fair market value or purchase price of the asset(s) being financed, and not exceed a period of 20 years.”
From the official program page
Before you spend any money
This is a loan, not a grant; you must repay the principal plus interest over time.
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 licensed tourism business in Prince Edward Island, such as a hotel, resort, or attraction, but not a bed and breakfast.
- You need funds for expansion, new construction, major repairs, or pre-season operating cash flow.
- Your lodging project meets the minimum 2.5-star Canada Select rating or helps extend the tourist season.
Probably not the right fit if
- You operate a bed and breakfast as defined by the Tourism Industry Act Regulations.
- You are located outside Prince Edward Island or lack a valid tourism establishment license.
- You need funding for vehicles that do not directly generate income or sales.
How much you'd realistically get
Long-term loans cover up to 80% of the fair market value or purchase price of the asset. Operating loans can cover up to 100% of pre-season costs. The official page does not list a dollar maximum. Ask Finance PEI before you apply.
What may be supported
- Purchase of tourism business
- Expansion of tourism facilities (restaurants, accommodations, attractions)
- New construction of tourism assets
- Repair or updating of fixed assets
- Pre-season operating capital for tourist facilities
What's excluded or restricted
- Bed and breakfast operations (as defined by the Tourism Industry Act Regulations) cannot borrow from Finance PEI
- Vehicles that do not directly contribute to the business's income or sales are not eligible
How applying works
Effort: moderateThe official page does not list an online application form, so contact the Commercial and Resource Lending Division directly. You will need to provide proof of licensing, asset valuations, and project details.
- 01Verify you hold a valid tourism establishment license and are not a bed and breakfast.
- 02Ensure your project meets the 2.5-star Canada Select rating requirement (for lodging) and has at least three units.
- 03Contact the Commercial and Resource Lending Division of Finance PEI at 902-368-6200 or financepei@gov.pe.ca.
- 04Submit your business plan, asset valuations, and proof of licensing for review.
- 05Negotiate terms including interest rate and amortization period (max 20 years for long-term).
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
- Valid tourism establishment license under the Tourism Industry Act Regulations.
- Proof of 2.5-star Canada Select Accommodation Rating (for lodging projects).
- Business plan detailing the expansion, construction, or operating needs.
- Asset valuations or purchase agreements for the fixed assets being financed.
What to know before you count on it
- The official page does not list interest rates. Ask Finance PEI before you apply.
- Lodging projects must have a minimum of three units and achieve a 2.5-star Canada Select rating to qualify for capital financing.
- Bed and breakfasts are explicitly excluded from borrowing under this program.
- Vehicles that do not directly contribute to income or sales are ineligible.
What are your odds?
Approval depends on your business viability, licensing status, and the asset's value. Finance PEI also checks your credit.
Frequently asked questions
Can I use this loan for a bed and breakfast?
No. Bed and breakfast operations as defined by the Tourism Industry Act Regulations are explicitly excluded.
What is the maximum loan amount?
The official page does not list a dollar maximum. Long-term loans are capped at 80% of the asset value. Ask Finance PEI about limits before you apply.
What is the interest rate?
The interest rate is not published. You must confirm this with Finance PEI.
Do I need a Canada Select rating?
Yes, for accommodation operations. The financed project must have a minimum 2.5-star rating under the Canada Select Accommodation Rating Program.
More funding by what it pays for
What you can combine it with
Related programs include the Down Payment Assistance Program and Energy Efficiency Loan Program. Ask Finance PEI whether you can combine this loan with those programs.
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.