Small Business Investment Grant

Overview of the Small Business Investment Grant program:

The Small Business Investment Grant (SBIG) is an initiative of the Government of Prince Edward Island designed to help Island-owned businesses grow, become more efficient, and adopt innovative practices. Administered by Innovation PEI, this grant encourages small businesses to invest in their operations by providing financial support for eligible capital purchases. The grant reimburses 15% of eligible expenditures, up to a maximum of $3,750 per business, per year. The purpose is to ease the financial burden of acquiring or upgrading equipment, software, or other business-related infrastructure that improves efficiency, productivity, or competitiveness. This is a non-repayable grant that supports a wide range of capital asset purchases, including digital tools, production equipment, renewable energy systems, and health and safety improvements. The program specifically excludes certain items like inventory, vehicles, and land, and cannot be used for routine maintenance or operational expenses. Eligible purchases must be made from Island-based businesses, reinforcing the program’s goal of circulating investment within the local economy. If the needed product or service is not available locally, businesses may request prior approval to purchase from out-of-province suppliers. The SBIG is ideal for small enterprises across all sectors—retail, food and beverage, manufacturing, services, tourism, etc.—looking to modernize their operations and boost long-term sustainability. Applicants must be for-profit, PEI-based, and in good standing with provincial regulations.

Benefits of the Small Business Investment Grant program:

• Direct financial support for eligible capital investments
• Encourages business modernization and innovation
• Supports purchase of equipment, software, renewable energy systems, and tools
• Incentivizes local economic activity by requiring PEI-based suppliers
• Enables small businesses to increase efficiency, reduce costs, and become more competitive
• Simple application and reimbursement process
• Enhances business sustainability with support for clean tech and safety upgrades

Eligibility criteria of the Small Business Investment Grant program:

• To be eligible, applicants must:
• Be a PEI-based for-profit business
• Be registered to operate in PEI and in good standing with the Province
• Be the owner/operator of the business
• Make eligible capital purchases valued at $1,000 or more (before HST)
• Purchase items or services from Island-based businesses, unless prior approval is granted for out-of-province purchases
• Submit receipts dated within the fiscal year (April 1 to March 31)
• Submit only one application per business per year
• Ineligible purchases include:
• Inventory
• Vehicles
• Land
• Routine repairs or operational costs
• Purchases made before April 1 or after March 31 of the same fiscal year