Prince Edward Island is launching a $12.5-million relief package to help businesses cope with the latest round of U.S. tariffs, the provincial government said Friday.
Immediate cash flow and one-time grants
The measures include a $10-million Tariff Working Capital Assistance Program delivered by Finance PEI and a $2.5-million pool of non-repayable grants administered through Innovation PEI. Officials say the supports are intended to help companies access operating funds quickly and to help workers obtain training and employment services as the trade situation evolves.
| Program | Amount | Key terms |
|---|---|---|
| Tariff Working Capital Assistance | $10 million | Loans up to $500,000; 4% interest; amortized over seven years with interest-only payments for first two years |
| Non-repayable grants | $2.5 million | Grants up to $50,000 per eligible business |
The province says the loan product will provide urgent access to funds for working capital needs, while the grants are aimed at helping firms adapt operations or offset immediate costs related to tariff pressures.
“We’re acting now, alongside our federal partners, to help businesses manage the immediate impacts, protect Island jobs and give them the tools they need to adapt,” said Premier Rob Lantz.
Context and previous supports
This announcement builds on an earlier tariff response launched in March 2025. According to the government release, the province has already provided $3 million in non-repayable grants to businesses since that earlier plan was announced.
Provincial officials are urging any Island company affected by — or at risk from — U.S. tariff measures to complete an online survey run by Innovation PEI so policymakers can better target supports.
- Who can apply: Businesses operating in P.E.I. affected by U.S. tariffs (agriculture and seafood are specifically noted).
- Loan details: Up to $500,000 at a 4% interest rate with seven-year amortization; interest-only for first two years.
- Grant details: One-time non-repayable awards up to $50,000.
Local impact and next steps
For many Island producers and processors, access to short-term financing can be the difference between maintaining payroll and reducing operations while markets shift. The loan program’s interest-only start is intended to ease immediate cash-flow pressure; the grant stream is meant to help businesses invest in adjustments or training required by changing export conditions.
Details on eligibility criteria, application timelines and how the programs will be administered will be posted by Finance PEI and Innovation PEI. Businesses are advised to consult those agencies and the provincial website for application instructions and deadlines.
Reporting from Charlottetown.
