PEI | Tariff Working Capital Assistance Program

Description

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 “Tariffs”), 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.

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 12 months. Loan Amount: up to $500,000 Term: 6 years (Interest-only for the first 12 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. Repayment of this loan will commence 12 months after the first disbursement, with the balance outstanding to be repaid over the remaining 5-year period (for a total term of 6 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.