Equity Investors Incentive

By mmuise
Description:

The Equity Investors Incentive provides new and expanding businesses in Prince Edward Island with a tool to encourage and attract private sector investment. The program provides a non-repayable incentive to investors to encourage investment in an approved Prince Edward Island-based investee business by increasing the return-on investment to investors.


Comments on Funding:

Funding is in the form of a direct rebate to investors (individuals or companies) and is calculated at up to 20 percent of the purchase price of the equity investment in the investee company. The maximum investors’ rebate for all eligible investors will not exceed $200,000 per approved investee company.

Deadline: Continuous Intake
Eligibility:

An eligible investee company must:

  • be a taxable, private Canadian corporation,
  • be registered to do business in Prince Edward Island,
  • have its head office and its primary business operations in Prince Edward Island,
  • have been in operation in PEI for a minimum of one year,
  • be a provider of exportable goods or services in one of the following strategic sectors: bioscience, aerospace and defence, advanced manufacturing and processing, renewable energy and clean technology, information and communications technology, creative and cultural industries (first-of-its-kind exportable goods or services in other sectors may be considered),
  • pay at least 75% of its payroll to employees residing in Prince Edward Island and must have fewer than 50 employees,
  • have assets less than $10 million,
  • ensure compliance with securities legislation,
  • have a well-developed business plan and demonstrate appropriate use of funds raised to support expansion and/or ongoing operations in Prince Edward Island,
  • not have any defaulted outstanding debt obligation on file in the Government of Prince Edward Island Central Default Registry.
    Eligible investors include: any Canadian person, Canadian-controlled private corporation or other Canadian-controlled company that is at arm’s length to the investee company as defined under Section 251 of the Income Tax Act (Government of Canada).
Application Steps:

Applicants: 1. must submit the online application form, 2. must accept the letter of offer forwarded to them which shall create a contract between Innovation PEI and the applicants.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

Equity Investor Incentive Guidelines is now available.

About the author
mmuise