PEI Capital Acquisition Assistance: How to Apply + Eligible Costs

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PEI Capital Acquisition Assistance: How to Apply + Eligible Costs

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.


What Is Capital Acquisition Assistance in PEI?

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.

How much funding can you get?

  • Up to 25% of eligible costs
  • Maximum of $25,000 per project
  • Funding is non-repayable
  • Total non-repayable government assistance cannot exceed 75% of eligible costs when combined with other programs

Funding is usually paid after you have incurred and documented the costs. It is not paid in advance.


Who Is Eligible for PEI Capital Acquisition Assistance?

To qualify for PEI Capital Acquisition Assistance, your business must meet all of the following requirements:

  • Be registered and actively operating in Prince Edward Island
  • Be in good standing with Innovation PEI (no defaults or overdue reporting)
  • Manufacture, process, or develop goods or services primarily for export
  • Operate in one of PEI’s strategic sectors, including:
    • Bioscience
    • Aerospace and defence
    • Advanced manufacturing and processing
    • Renewable energy and clean technology
    • Information and communications technology (ICT)
    • Creative and cultural industries
  • Businesses in other sectors may be considered if they offer first-of-its-kind, exportable goods or services

Startups can apply if they are export-oriented and aligned with a strategic sector.


Eligible Costs Under Capital Acquisition Assistance

The program supports capital investments only. It does not cover day-to-day operating expenses.

Eligible costs include:

  • Purchase of machinery and equipment
  • Specialized technology for production or service delivery
  • Renovations or leasehold improvements required for expansion or new equipment
  • Installation costs directly related to the capital asset

All costs must be:

  • Directly linked to business growth or increased capacity
  • Incurred after approval (pre-approved retroactive costs are generally not eligible)

Ineligible costs typically include:

  • Working capital or inventory
  • Marketing or advertising
  • Routine maintenance or repairs
  • General office furniture not tied to production or expansion

GrantHub’s eligibility matcher can help you filter PEI capital grant programs by industry and project type, saving you time during your search.


How to Apply for PEI Capital Acquisition Assistance

Applications are submitted directly through Innovation PEI. Each application is assessed individually.

Application steps:

  1. Define your project
    Clearly describe what you’re buying and why it’s needed.

  2. Prepare a project budget
    Include quotes or cost estimates for all capital items.

  3. Explain business impact
    Show how the investment will increase exports, productivity, or competitiveness.

  4. Confirm financing
    Have other financing in place, such as a bank loan, cash, or investor funding.

  5. 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.


Common Mistakes to Avoid

  1. Applying while in default with Innovation PEI
    Applications will not be reviewed until all outstanding debts and reporting issues are resolved.

  2. Including operating expenses
    Capital Acquisition Assistance does not cover wages, inventory, or marketing costs.

  3. Assuming funding is paid upfront
    Most funding is reimbursed after eligible costs are incurred and verified.

  4. Ignoring stacking limits
    If total government grants exceed 75% of eligible costs, your funding may be reduced or declined.


Frequently Asked Questions

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.


Next Steps

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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