Small businesses on P.E.I. claims uneven playing field for government loans

Small business owners in P.E.I. feel like they’re on an uneven playing field when it comes to getting government loans, says Kensington-Malpeque MLA Matthew MacKay.

MacKay continued the theme of accountability for government loans after Opposition Leader James Aylward’s questions about the province’s Crown lending agency during Thursday’s question period.

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MacKay said he’s heard from a number of “reputable” small business owners who’ve tried to get a government loan and were denied.

“They seem to have a rough time getting a small amount of money. When you see the big loans going through that cabinet is signing off of, it’s upsetting the businesses,” MacKay said following question period. “They feel they’re on a different playing field… they’re frustrated.”

Economic Development Minister Chris Palmer said 60 per cent of the province’s loan portfolio is in rural P.E.I. and that all loan applications are reviewed by Finance P.E.I. for a recommendation.

“We’re very proud with the record that we have,” said Palmer, noting loan applications are based on the project’s merit, the proponent’s ability to pay it back and the management expertise.

“There’s lots of investment going on right across P.E.I.”

MacKay also called for more transparency around large government loans, stating that when cabinet approves multi-million-dollar loans there is usually little information made public.

MacKay said there were 23 orders in council for government loans approved by cabinet since 2015, which totalled about $58 million.

“Sometimes there may be a project description, but most times the only information is the amount (of the loan) and who got it,” said MacKay, who wants to see the province always provide a description, as well as terms of the loan and whether it’s being paid. “People are getting frustrated because they don’t feel a lot of these loans are getting paid back.

“I think the public deserves to know where their money is going.”