A potato processor in Souris, P.E.I., is getting a $500,000 loan from the federal government to help expand its business.

East Point Potato says the repayable contribution from ACOA will help the company purchase equipment to increase productivity and respond to an ever-changing market.

"As a growing rural P.E.I. business whose goal is to add value to our primary produce and to provide employment to rural Islanders, we are pleased that our federal government is working with us in achieving our goal," company president Boyd Rose said in a news release.

Shareholders of East Point Potato come from sixth generation potato farms that pack their own potatoes as well as product from farms in the surrounding region. The company exports to retail and food service clients across the country.

It's the second major investment in the potato industry by the federal government this week. On Wednesday, it announced $400,000 for Mid-Isle Farms of Albany, P.E.I.