P.E.I. Rural Development Minister Ron MacKinley says it's taken longer than expected to get money flowing from the Hermanville community enhancement fund.
The province agreed to provide $125,000 a year for to the community for five years when the province's new wind farm was established in the area.
In February the government said it expected to start funding projects as early as April 1, but last week the department announced it's just started accepting applications.
"When you're dealing with government it takes time and we're ready for applications now," said MacKinley.
"You have to have a committee, it's got to go to treasury board, you got to go to policy board, and then it's got to go to Cabinet. So the thing is up and running and get your applications in, is what I'll tell you to do."
People in the area have been invited to submit applications for funding. An 11-member community committee will help the department decide which applications will be approved.
MacKinley isn't sure when the first funding will be awarded, but said if there is money unspent at year end it will roll over to next year.
Businesses can apply for 50 per cent of a capital project to a maximum of $10,000 and non-profit community groups can apply for 75 per cent of the funds needed for a proposal.