Tariff Working Capital Assistance Program
A financing program has been developed to provide working capital financing to assist Prince Edward Island businesses impacted by the new export tariffs implemented by the United States of America (the āTariffsā), ensuring they can maintain operations, preserve jobs, and invest in alternative supply chain strategies. This new loan program will assist qualifying companies to maintain normal business operations during these unprecedented times.
Offered by Finance PEI
Amount
Up to $500,000
Working capital loan of up to $500,000 at a fixed interest rate of 4% per annum, 7-year term with principal payments deferred for 24 months; no application fee
Quick eligibility check
Who can apply
For a company to be eligible for assistance, the following criteria must be met:
- Prince Edward Island based businesses affected by export tariffs (verified through financial records and trade data);
- Manufacturers, processors, producers and distributors significantly impacted by the export tariffs;
- Tariff Impact:āÆBusiness must demonstrate that it has been directly affected by export tariff increases (e.g., increased supply chain costs);
- Business Type: Any PEI registered business involved in export activities impacted by tariffs;
- The applicant has a satisfactory credit rating and must not have any defaulted outstanding debt obligation on file in the Provinceās Central Default Registry.
About the funding
Eligible applicants can apply to receive a working capital loan of up to $500,000 with a fixed interest rate of 4% per annum to be used to assist with fixed operating costs with principal payments deferred for 24 months.
- Loan Amount: up to $500,000
- Term: 7 years (Interest-only for the first 24 months, then structured principal payments over a 5-year period)
- Interest Rate: The loans will bear interest at a fixed rate of 4% per annum, commencing at first disbursement and accruing during the term of the loan.
Show all funding details
Repayment of this loan will commence 24 months after the first disbursement, with the balance outstanding to be repaid over the remaining 5-year period (for a total term of 7 years).
Loans are secured by:
- Promissory Note for the full amount of the loan;
- Personal guarantees of the business owner(s);
- Registered General Security Agreement.
No application fee.
Loan proceeds will be disbursed on an as-needed basis for clients, through multiple advances with supporting documentation.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Advance Payments Program | Loan Guarantee, Loan | Up to $1,000,000 | Open |
| BDC Commercial real estate loan | Loan | Typically starts at $100,000 and can go up to several million dollars | Open |
| BDC Growth & Transition Capital: Creation and culture | Loan | Loans of more than $350,000 (loans of $350,000 or less go through the Small Business Loan), with a higher percentage of financing, longer repayment periods and payments matched to your cash flow, plus consulting services | Open |
| BDC Growth & Transition Capital: Working Capital | Loan, Investment | Financing from $250,000 to $35M, repayable over 2 to 8 years | Open |
