Manufacturing and Processing Assistance

Finance PEI offers term loans for purchasing capital assets and operating loans for the business’ accounts receivable and inventory. Capital loans are to be amortized over the life expectancy of the asset and based on the company's operational cash flow. Maximum financing generally does not exceed 80 per cent of the purchase price or fair market value of the assets, whichever is less. Up to 100 per cent financing may be provided for inventory purchases and account receivables based primarily on purchase orders and signed contracts/ agreements.

Manufacturing and processing includes any person that:

1. carries on business, or intends to carry on business, in the province, and
2. operates a business that produces a product by mechanical method from a raw material that is altered to add value.  Loans are available to buy land and buildings, specialized equipment, and in some cases, production inventory.

Capital Loan

Capital loans are available for the purchase and/or refurbishment of capital assets and in some cases, for debt restructuring. The maximum term for a loan is 20 years and has flexible repayment options, which are in line with your business’s cash flow. Loans are secured by first charge on real property or the asset being financed but in some cases alternate security may be considered. The loan limit will not exceed 80 percent of the fair market value or purchase price, whichever is less.

Intermediate Term Loan

The repayment term will be equal to the expected life of the asset being financed, but will not exceed 10 years. These loans may be used for improvements to certain business assets, except for vehicles that do not directly contribute to the business’s income or sales.

Operating Loan

Up to 100 per cent financing may be provided for purchasing inventory and for the day-to-day operating costs of the business. Operating loans shall be repaid from the sale of inventory and are based on the company’s cash flow.