CBDC Central PEI is a provider of the Atlantic Canada Opportunities Agency (ACOA) Regional Relief and Recovery Fund (RRRF) for “Main Street Businesses” called The Urban Main Street Loan Initiative. The business must be located in the Greater Charlottetown area (Charlottetown, Stratford and Cornwall).

This loan is to be used to finance the everyday operations of a business such as sales and marketing, product development, wages and other activities for businesses such as retail shops, restaurants, corner stores, etc., and businesses of strategic importance to the community. The loan is to assist with eligible working capital costs that were incurred by the borrower after March 15th 2020, and prior to March 31st, 2021.

Applications for the UMSLI closed March 31st, 2021.

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How do I apply?

• New borrowers (after February 17th, 2021) will be eligible for an Initial Loan and a Supplemental Loan, with the total amount of both not exceeding $60,000.  You must first receive the full $40,000 Initial Loan before submitting an application for a Supplemental Loan of up to $20,000.
• Previous applicants who have already received the maximum Initial Loan of $40,000 may submit a new application for a Supplemental Loan of up to $20,000.
• Previous borrowers who have received funding from the Initial loan of less than $40,000 may submit an application for up to the remaining amount available for them through the Initial Loan (ie: If you have previously received $10,000, you may apply for up to $30,000). If you then receive the full amount available from the Initial Loan by the March 31st deadline, you may apply for a Supplemental Loan of up $20,000.

Initial Loan:

• Maximum loan of $40,000
• 0% interest until December 31, 2022;
• No principal payments until December 31, 2022;
• Principal repayments can be voluntarily made at any time without penalty;
• 25% up to a maximum of $10,000 in loan forgiveness is available, provided the outstanding balance is paid back by December 31, 2022;
• If any part of the balance is not paid by December 31, 2022, the remaining balance will be converted to a term loan effective January 1, 2023; and,
• The full balance must be repaid no later than December 31, 2025.
• A borrower will not be eligible for any credit unless the borrower has repaid each of 75% of the first $40,000 and 50% of the amount between $40,001 and $60,000, by December 31st, 2022.

Supplemental Loan:

• Maximum loan of $20,000;
• 0% interest until December 31, 2022;
• No principal payments until December 31, 2022;
• Principal repayments can be voluntarily made at any time without penalty;
• 50% up to a maximum of $10,000 in loan forgiveness is available, provided the outstanding balance is paid back by December 31, 2022;
• If any part of the balance is not paid by December 31, 2022, the remaining balance will be converted to a term loan effective January 1, 2023; and,
• The full balance must be repaid no later than December 31, 2025.
• A borrower will not be eligible for any credit unless the borrower has repaid each of 75% of the first $40,000 and 50% of the amount between $40,001 and $60,000, by December 31st, 2022.

Eligibility

• The Applicant must have attempted to access other federal relief measures under Canada’s COVID-19 Economic Response Plan, such as the Canada Emergency Business Account (CEBA), the Wage Subsidy benefits, the Commercial Rent Assistance for small businesses among others, and was either ineligible or rejected, or accessed COVID-19 relief measures and continues to experience liquidity issues.
• The Applicant is required to attest that they applied for other federal benefits and were approved, rejected or deemed ineligible.
• The Applicant must have been established before March 01, 2020.
• The Applicant must have been adversely impacted because of the COVID-19.
• The Applicant office must be located within the Greater Charlottetown area.
• Assistance may be provided to sole proprietorships, partnerships, incorporated companies and cooperatives.
• The Applicant must be the majority shareholder of the business and have the authority to bind the business.

Eligible Costs

Eligible costs include costs that will help to stabilize businesses to mitigate impacts of COVID-19 and which are not covered by other COVID-19 relief measures. These costs may be eligible as of March 15, 2020 and include, but not limited to the following:

1. Rent (only eligible if the commercial rent program is not accessed);
2. Rent or lease of equipment and machinery;
3. Salaries and benefits (only eligible if not eligible or rejected through the Canada Emergency Wage Subsidy (CEWS)
4. Property taxes;
5. Utilities;
6. Cleaning supplies;
7. Additional safety measures;
8. Bank interest/charges and loan repayment (interest);
9. Office supplies;
10. Vehicle operating expenses;
11. Professional fees;
12. Insurances, and
13. Other fixed overhead costs and one-time stabilization expenditures.

Note: A borrower will not be eligible for any credit unless the borrower has repaid each of 75% of the first $40,000 and 50% of the amount between $40,001 and $60,000, by December 31st, 2022.

Applications for the UMSLI closed March 31st, 2021.