Tourism Financing Assistance

By mmuise
Description:

The Tourism Financing Assistance is designed to meet the particular needs of Prince Edward Island tourism operators for the following purposes: purchase of business, expansion, debt consolidation, new construction, and repair or updating of fixed assets. These loans may be used for the purchase of machinery, equipment, real property and buildings, or other items of a capital nature.
The assistance can take the form of:
1. long term loan for the establishment, expansion and refurbishment,
2. intermediate term loans for improvements to certain assets, excluding vehicles that are not involved in the borrower’s income/sales,
3. operating loans mainly for pre-season preparation of tourist facilities.


Comments on Funding:

The long term loans will not generally exceed 80% of the fair market value or purchase price of the asset(s) being financed, and not exceed a period of 20 years.
Funding for operating loans is up to 100%.
The amortization period must coincide with the expected life of the asset being financed, but in no case will it exceed 20 years.
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.

Deadline: Continuous Intake
Eligibility:

The applicant can be any person that :

  • carries on a tourism business, or intends to carry on such a business, in the province,
  • operates a business, other than a bed & breakfast establishment as defined in the Tourism Industry Act Regulations (EC267/99), that holds a valid tourism establishment license issued pursuant to the Tourism Industry Act Regulations.
    Accommodation operations require a minimum of three lodging units, once complete, to qualify for capital financing.
    Projects that will expand the tourist season are strongly encouraged.
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: November 23, 2023

About the author
mmuise