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Tourism Loans

Where can I find information about getting a loan for tourism?

Tourism includes any person that:

carries on business, or intends to carry on business, in the province, and
operates a business, other that a Bed & Breakfast establishment as defined in the Tourism Industry Act Regulations (EC267/99), that holds a valid tourism establishment licence issued pursuant to the Tourism Industry Act Regulations.

Projects to expand the shoulder tourist season and development of integrated recreational complexes which would feature entertainment facilities, lodging and dining facilities are to be encouraged. In some cases, loans may be granted for accommodation units which are converted to other uses during off-season periods.

This program is designed to meet the special needs of Island tourism operators for the following purposes:

Purchase and/or acquisition of business
Expansion
Debt consolidation
New construction
Refurbishment of fixed assets

Conditions/Restrictions

Upon completion of the project, the project being financed must achieve a minimum 2 1/2 star rating under the Canada Select Accommodation Rating Program.
Bed & Breakfast operations, as defined by the Tourism Industry Act Regulations, are ineligible to borrow from the Agency.
Accommodation operations require a minimum of three lodging units, upon project completion, to qualify for capital financing.

Long Term Loans

Capital loans are available for the establishment, expansion, refurbishment and for the purpose of debt consolidation of tourism facilities. Such facilities may be a combination of restaurant, accommodations, recreational, entertainment, activities and attractions. Special attention should be given to projects which will extend the shoulder or off season periods when providing greater incentives to off Island guests to visit or extend their stay on Prince Edward Island.

Loans shall not generally exceed 80% of the fair market value or purchase price of the asset(s) being financed, and not exceed a period of 20 years.

Intermediate Term

The amortization period should coincide with the life of the asset being financed, but loans will not exceed ten (10) years. These loans may be used for chattel asset refurbishment, excluding vehicles which do not directly contribute to the borrower’s income/sales.

Operating Loans

Up to 100% financing may be provided for operating loans to tourism operators, principally for pre-season preparation of tourist facilities.

Contact

Charlottetown

National Bank Tower

Aitken, Don (Account Manager)