If you’re a Prince Edward Island business planning to buy new equipment, upgrade technology, or expand your facility, the PEI Capital Acquisition Assistance program can help with upfront costs. This Innovation PEI program provides non-repayable funding to support capital investments that increase capacity and competitiveness, especially for export-focused businesses.
Many PEI companies struggle with cash flow when making large capital purchases. These investments often require financing, and lenders may see them as high risk. Capital Acquisition Assistance is designed to help make these projects more feasible for your business.
Capital Acquisition Assistance is a grant program delivered by Innovation PEI. It supports Island businesses that invest in capital assets tied to growth, expansion, or improved productivity.
Funding is usually paid after you have incurred and documented the costs. It is not paid in advance.
To qualify for PEI Capital Acquisition Assistance, your business must meet all of the following requirements:
Startups can apply if they are export-oriented and aligned with a strategic sector.
The program supports capital investments only. It does not cover day-to-day operating expenses.
All costs must be:
GrantHub’s eligibility matcher can help you filter PEI capital grant programs by industry and project type, saving you time during your search.
Applications are submitted directly through Innovation PEI. Each application is assessed individually.
Define your project
Clearly describe what you’re buying and why it’s needed.
Prepare a project budget
Include quotes or cost estimates for all capital items.
Explain business impact
Show how the investment will increase exports, productivity, or competitiveness.
Confirm financing
Have other financing in place, such as a bank loan, cash, or investor funding.
Submit your application
Applications are accepted while funding is available. Visit the Innovation PEI application page to apply.
Approval is not guaranteed. Projects with clear economic impact and strong export potential are more likely to be approved.
Applying while in default with Innovation PEI
Applications will not be reviewed until all outstanding debts and reporting issues are resolved.
Including operating expenses
Capital Acquisition Assistance does not cover wages, inventory, or marketing costs.
Assuming funding is paid upfront
Most funding is reimbursed after eligible costs are incurred and verified.
Ignoring stacking limits
If total government grants exceed 75% of eligible costs, your funding may be reduced or declined.
Q: How much funding does PEI Capital Acquisition Assistance provide?
You can receive up to 25% of eligible project costs, to a maximum of $25,000 per project. The funding is non-repayable.
Q: Can startups apply for Capital Acquisition Assistance?
Yes. Startups may be eligible if they are export-focused and operate in a strategic sector identified by Innovation PEI.
Q: What types of equipment are eligible?
Eligible investments include machinery, production equipment, and renovations or leasehold improvements directly tied to business growth or expansion.
Q: Can I combine this grant with other PEI or federal programs?
Yes, stacking is allowed. However, total non-repayable government funding cannot exceed 75% of eligible costs.
Q: Is Capital Acquisition Assistance considered taxable income?
Generally, yes. Grant funding is typically taxable and should be reviewed with your accountant.
GrantHub tracks active grant programs across Canada — including PEI capital funding — so you can quickly check which ones match your business profile.
If you’re planning a capital purchase in PEI, Capital Acquisition Assistance may help make your project more affordable. Before you apply, check that you meet the eligibility criteria, your sector aligns with the program, and you understand the stacking limits.
To get started, gather your project details, budget, and financing plan. Then, visit the Innovation PEI application page to submit your application.
For more information on related programs, you may want to read Manufacturing and Processing Assistance Loans in PEI: Capital vs Operating and How to Apply for the Tariff Working Capital Assistance Program in PEI. GrantHub can help you see which programs fit your business needs.
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