PEI Small Business Investment Grant

Insider Tip

Apply early in the fiscal year (April–June) rather than waiting until Q3/Q4 — the program is first-come, first-served and funding may be exhausted late in the year. Also note the two-step process: submit your application first, then submit invoices for reimbursement after purchase (payment request deadline is May 31, one month after the application deadline). Contact an Innovation PEI Business Development Officer before applying — they can flag whether Capital Acquisition Program is a better fit for your project and help you avoid applying to the wrong program.

Rejection Pitfalls 8

• Business operates in an ineligible sector (fishing, farming, real estate, financial services, not-for-profit)
• Defaulted debt on file with Province's Central Default Registry
• Capital assets already purchased before application approval

Success Profile

PEI for-profit small business (any sector except fisheries, farming, real estate, financial services) purchasing capital equipment, technology, or making leasehold improvements. Owner-operated sole proprietorships with no employees qualify if the business is their primary income source. Strongest fit: retail, hospitality, trades, professional services, tech, and manufacturing businesses making discrete equipment or technology purchases in the $5,000–$25,000 range.

Evaluation Criteria

No merit-based scoring. Eligibility compliance is the sole hurdle: (1) for-profit PEI business with at least one employee or business as primary income source; (2) not in an excluded sector (fishing, farming, real estate, financial services, non-profit); (3) no defaulted debt on file with Province's Central Default Registry; (4) assets not yet purchased; (5) no other Innovation PEI Capital Acquisition Program application in the same fiscal year; (6) individual items $50 or more. Applications reviewed in order received — first-come, first-served until funds depleted.

Application Steps

Required Documents 7

Eligible Expenses 8

• Capital equipment purchases (machinery, tools, specialized equipment)
• Technology hardware and software that is capital in nature (not subscription SaaS)
• Leasehold improvements to a business premises
• Point-of-sale systems and technology upgrades
• Manufacturing or production equipment
• Vehicles used primarily for business operations (excluding personal-use vehicles)
• Individual items must be $50 or more in value
• Assets purchased at arm's length (not from affiliated or related parties)

Ineligible Expenses 8

• Assets purchased before application approval date
• Individual items under $50 in value
• Assets purchased from affiliated or related parties
• Operating expenses (rent, utilities, wages, subscriptions)
• Inventory for resale
• Intangible assets (trademarks, licenses, goodwill)
• Assets for personal use outside the business
• Costs that would make the combined non-repayable government assistance exceed 75% of total project cost

Intake Periods

Annual — April 1 to March 31: Program runs on the provincial fiscal year cycle. Applications accepted from April 1 through March 31. Request for Payment (invoices) deadline: May 31. Apply in Q1 (April–June) to minimize risk of fund depletion. Program renews each April 1.

Deadline Notes

Annual program running April 1 – March 31. The 2026-27 cycle is expected to be open. Application deadline: March 31, 2027. Request for Payment deadline: June 30, 2027. Contact Innovation PEI to confirm current cycle status.

Open Application Portal →

Ineligible Organizations

• Non-profit organizations
• Commercial fishing businesses
• Farming operations (primary agriculture)
• Real estate businesses
• Financial institutions and insurance companies
• Businesses with defaulted debt on Province of PEI's Central Default Registry
• Businesses already receiving Innovation PEI Capital Acquisition Program funding in the same fiscal year

Compatible Programs

Clawback Risk

Low Risk