Export tariffs can cause cash flow problems quickly. Higher costs, delayed payments, and supply chain issues can leave even strong businesses short of working capital. The Tariff Working Capital Assistance Program in PEI offers low-interest loans to help Island exporters manage these challenges caused by tariff increases.
The Tariff Working Capital Assistance Program is a repayable loan. It is managed by the Government of Prince Edward Island and supports local businesses facing higher export tariffs.
Key funding details:
This structure helps businesses handle short-term cash shortages. It gives owners time to change pricing, find new suppliers, or adjust export plans.
Your business must show direct financial impact from tariffs to qualify.
You may be eligible if your business:
Applications without clear proof of tariff impact are often delayed or declined.
Applying is simple, but good preparation is important.
You need documents that show tariffs have raised your costs. Examples include:
Prepare a clear explanation of how you will use the loan. Eligible uses include:
Apply through the PEI government’s business financing channels. Expect a credit review and checks to confirm tariff impact.
Many PEI business owners use GrantHub’s eligibility matcher to compare programs by province and industry. It can help you decide if this loan is the right fit or if other options suit your needs.
Thinking this is a grant
This is a loan. Show how you will repay, not just why you need the money.
Weak proof of tariff impact
General cost increases are not enough. You must link higher costs directly to export tariffs.
No cash flow projections
Lenders want to see how your business will handle repayments after the interest-only year.
Ignoring credit issues
Bad credit or existing defaults can stop your application before it starts.
Q: Is the Tariff Working Capital Assistance Program a grant or a loan?
It is a repayable loan with a fixed 4% interest rate. You must repay both principal and interest over six years.
Q: How much funding can my business receive?
Eligible businesses can get up to $500,000 in working capital support, depending on need and credit assessment.
Q: When do repayments start?
Repayments begin 12 months after the first disbursement. The first year is interest-only, then you pay principal and interest for five years.
Q: What can the loan be used for?
Funds can cover working capital needs tied to tariff impacts, including higher supply chain costs and cash flow disruptions.
Q: Does my credit rating matter?
Yes. You must have a satisfactory credit rating and no defaults with the province to be approved.
If you want more support options, check out:
The Tariff Working Capital Assistance Program in PEI is helpful if export tariffs are hurting your cash flow. Make sure your documents are clear and your repayment plan is solid.
GrantHub keeps track of hundreds of grant and loan programs across Canada. You can use it to find PEI-specific funding options that match your business profile.
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