Enterprise PEI released today year end results from the Entrepreneur Loan Program that the crown corporation administers for the Department of Development.
In 1998/99 the Entrepreneur Loan Program approved $2,453,880 in new loans, which is the highest level of funding approved for the program since its inception. This illustrates an increase of 28 percent from previous year approval levels. It also marks the sixth consecutive year that funding has been increased for this specific program. Under this program, 255 jobs are estimated to have been created in communities across PEI. This also represents an increase from 1997/98 figures.
The Honourable Don MacKinnon, Minister of the Department of Development, was pleased with the results of the Entrepreneur Loan program. "Small business development is a priority of our Government. These statistics reflect the importance that government has placed on small business during the past two years." The Minister also added that "our Department has recognized the growth in demand for this program and consequently have increased the funding for the program this upcoming year."
The Entrepreneur Loan Program provides entrepreneurs with up to $25,000 for use as an investment in eligible new and expanding businesses. Loans are sourced through participating financial institutions and are fully guaranteed by Enterprise PEI to
a maximum of five years. Interest is charged at a floating rate of prime plus one percent and applicants receive a one-time rebate on interest paid.
The program also includes a student component for a $3,000 loan repayable by October 31 of the year in which the loan is made. Applicants must make a cash equity contribution in the business equal to 30 percent of the loan; for students, the equity requirement is 20 percent and may be in cash or in kind.