PEI Crafts Council Loan Fund

Objectives: Craft Supply Loans, administered by the P.E.I.C.C. are intended to supply short term financial assistance to professional PEI Craft Council members, primarily for the purchase of supplies (raw materials used in the production of a product - loans will only be approved for up to one years supply of raw materials), in particular (but not limited to) the small producers and/or those just starting out in the craft sector.

While we would encourage applicants to source funds for equipment and building materials through other avenues, loan funds might be made available under certain circumstances. Loan repayment, as per schedule, will be beneficial as a credit reference when applying to a financial institution for loans and/or credit. Upon total re-payment of monies borrowed, a second loan may be considered, but the artisan will also be encouraged to apply to a financial institution. Maximum of two loans per artisan/business.

Deadlines: Applications can be submitted at any time.

Each committee member will receive copies of the applications, for perusal, and discussion of application and credit rating and then a decision will be made, either by telephone contact and/or meeting (if viewing of product is deemed necessary).

Applicant will be notified in writing, of the decision, along with any input regarding the product, cash flow statement, wholesale purchasing, pricing, etc.

Funding Board: The Board is comprised of the following members: Two artisans, P.E.I.C.C. Coordinator

Other qualified people may be asked for input (regarding quality of product, ability to repay, etc.)

Maximum Loan: $3,000.00

Administration Fee: In lieu of interest charges, a $60.00 administration fee will be charged. This fee will be deducted from the approved amount of loan or added to first re-payment check.

Repayment: Monies borrowed for the purchase of supplies, must be repaid within 12 months of loan date. Payment in the form of post dated cheques will be required before any funds will be released - repayment schedule can be worked out when completing your cash flow statement (see application form). If cheques are not used, etransfers will be acceptable.

Eligibility:
Only Juried members that are professional members of the PEI Craft Council are eligible to use these funds.
Applications are assessed considering the following:
1) Business Financial Need - Working capital requirements (money to purchase raw materials).
2) Loan Repayment - As determined by cash flow projections, historical sales and market support.