For Businesses: Tourism Interest Relief Program

Provided by: COVID-19: Financial Assistance and Supports for Individuals and Businesses

Service Description

Provides assistance to PEI tourism operators by reimbursing interest expenses incurred during the COVID-19 pandemic.

Interest relief is only eligible for 'term debt' directly related to tourism activities, and held with a financial institution (i.e. chartered banks, Credit Unions, BDC and FPEI/PEI Century Fund). Excludes revolving credit.

The maximum cumulative interest relief to be provided to any one business is limited to the lower of the total revenue reported by the business for income tax purposes in the previous year or $700,000.

The program will provide interest relief on term debt incurred between April 1, 2020 to September 2022 for every month that they demonstrate either:
  • A minimum 30% decrease in tourism related revenues from PEI operations compared to the same month in the prior year; or
  • Demonstrates that the operation had no tourism revenue for that month
June 1-December 31, 2021:
  • Assistance provided equal to the amount of unsubsidized interest expense incurred or paid on property taxes for eligible properties in which the tourism operator demonstrates they have been applied for the Canada Emergency Rent Subsidy (CERS) (Unsubsidized interest is equal to the total interest on eligible properties reduced by the percentage subsidized by CERS)
Joint partnership between Finance PEI and Tourism PEI. Applications are submitted to Finance PEI.

See website for specific details on this program.

Information

Eligibility:
Must be a for-profit entity operating in one of the following sectors:
-Licensed tourism accommodations (e.g. hotel, motel, bed and breakfast, inn, resort, cottage operations, campgrounds)
-Licensed tourism accommodations must be used for business activity and not, in whole or in part, for primary residential purpose
-Food and beverage service (e.g. restaurant, bar, brewery)
-Local artisans and artists (e.g. pottery, artwork)
-Locally-owned retail and gift shops that cater primarily to Tourism
-Attractions (e.g. museum)
-Tourism service/experience providers
-Event companies
-Adventure (e.g. kayaking, amusement park, golf)
-Tour operator

Businesses that are in the process of receivership as per the Canada's Bankruptcy and Insolvency Act, or have been so in the past, are not eligible for this program.

Note: The physical tourism operation and its head office must be located on PEI. All non-Canadian or publicly traded companies or company owned by the same are excluded from this program. Corporate operations of a franchise network with establishments located outside of PEI are excluded from this program. Only licensed tourism accommodations that held licenses before April 1, 2020 are eligible.
Fees:
No fees
How to Access:
Completed online application
Documents Required:
Monthly financial statements * Copies of term debt agreements * Documentation to confirm that debt was incurred for the purpose of earning income on PEI for tourism activities * Completed Tourism Interest Relief Program Pre-Authorization for Credit Transactions form * See website for complete list of documents required
Language:
English
Coverage Area:
Prince Edward Island

Service Locations & Contact Info