Manufacturing and Processing Assistance
no fixed amount
Loan
Description:
The Manufacturing and Processing Assistance provides financial support to manufacturing and processing businesses in Prince Edward Island to buy land and buildings, specialized equipment, and in some cases, production inventory. The assistance can take the form of:
1. capital loans for the purchase and/or refurbishment of capital assets and in some cases, for debt restructuring,
2. intermediate term loans for improvements to certain business assets, except for vehicles that do not directly contribute to the business’s income or sales,
3. operating loans for purchasing inventory and for the day-to-day operating costs of the business.
Comments on Funding:
Maximum financing generally does not exceed 80% of the purchase price or fair market value of the assets, whichever is less.
Funding for inventory purchases and account receivables is up to 100% and is based primarily on purchase orders and signed contracts/ agreements (operating loans).
Capital Loans have up to 20 years terms and flexible repayment options and must be secured by first charge on real property or the asset being financed and in some cases alternate security may be considered.
There is an application fee of $250.00 or one half (½) of one per cent of the amount of the loan proposed, whichever is greater.
Continuous Intake
Eligibility:
The applicant can be any person that :
1. carries on a manufacturing and processing business, or intends to carry on such a business, in the province,
2. operates a business that produces a product by mechanical method from a raw material that is altered to add value.
Application Steps:
No specific steps have been identified.
Documentation Needed:
No specific documentation has been identified.
Other Things to Note:
No other details available.
Published date: January 25, 2024
About the author
Maurice
