October 20, 2002
In Rural Ontario - Access to Investment Capital Is Always Our First Concern
Community Futures Development Corporation of North & Central Hastings and South Algonquin (CFDC) investment fund is stronger than ever, with $3,776,000 in 106 current active loans invested in local small business and more than $473,000 more in loans approved and not yet disbursed. The CFDC has made 344 loans for a total of $9,860,530 disbursed in loans since 1989 and has created or maintained a total of 785 jobs.
The average loan loss rate for 2001 was only decimal 8 %. Considering we are supposed to be a “high risk lender of last resort” that speaks very highly for both our investment committee and our investment manager.
Community Futures Development Corporation of North & Central Hastings and South Algonquin serves a large area in South Central Ontario of 4,260 sq. km. encompassing 12 incorporated municipalities including the Town of Bancroft, the Municipalities of Centre Hastings, Tweed, Marmora and Lake, Hastings Highlands Townships of South Algonquin, Carlow and Mayo, Faraday, Limerick, Madoc, Tudor & Cashel, and Wollaston. The population for the entire area was recorded at 29,373 in the 1996 census.
1996 Census data indicates the average total income of persons reporting income in our area is $20,097 as opposed to the Ontario average of $27,309, a difference of 26.4%. The unemployment figures are traditionally 4 to 6 percentage points higher than Ontario’s average while ‘96 census data show the labour force participation rate to be 16 percentage points lower than the Ontario average. In addition 43.6% of the population age 25 years and over have less than a high school diploma.
Marketing Community Futures Development Corporation of North & Central Hastings and South Algonquin certainly has not been a major challenge. Demand for investment always exceeds availability of funds. Marketing is done at point of contact through each municipal office, each of nine bank or credit union branches, a finance company and also through CFDC Directors with storefronts in areas more remote from our office.
To meet excess demand a $500,000 top up to our investment fund was invested in local business before the announcement was even made last spring. More than $650,000 dollars has been borrowed from the Asset Management Program and almost immediately loaned out and a further additional top up has been requested for 2002 to meet remaining excess demand.
It is not a matter of CFDC competing with conventional lenders; in fact, we work very closely to help secure cheaper loans from the conventional lenders whenever possible. In 2001 alone, our investment manager also referred $913,000 in potential loans to conventional lenders with $838,000 of that approved by the Royal Bank to date creating or maintaining an additional 18 jobs which could be added to our 2001 total.
Business Counselling is an extremely important aspect of our service. Fine tuning a business plan or persuading entrepreneurs to rethink weak plans is extremely important and contributes positively to our exemplary loan loss record.
Fourteen Clients are currently enrolled in the Self Employment Benefits program. Over the past year, the CFDC has facilitated 15 business workshops, which have been well attended by the business community at large.
North Hastings Community Strategic Plan - an inclusive, holistic process - has been completed and is currently in the action implementation phase. Projects within the strategic plan being lead by the CFDC and currently underway include:
- youth opportunities development, including a youth career information fair, youth leadership program, youth enterprise development
- “north-hastings.com” - a major community web portal, including design of 7 individual municipal sites, a comprehensive business directory, community profile, etc. for a total of more than1000 searchable web pages
- “upnorthart.com” - a major effort to introduce area art galleries, artists, etc. to E-commerce
- co-contact for economic development leads
- IT promotion and workshops
- North Hastings promotional video and image improvement campaign
- Grantsmanship
- greater access to investment capital
CFDC is currently in a supporting role in Strategic Plan implementation in: a cell tower study; broadband access; physician recruitment; wastewater issues; seniors middle care facilities; skilled trades initiatives; and Rural Volunteer Network; to date through the Strategic Plan Implementation.
CFDC has conducted Business Retention and Expansion (BR&E) in all but Tweed in Hastings County and Whitney in South Algonquin is currently underway in Marmora.
In Centre Hastings, a village of 1400, the BR&E process with continuing CFDC support has been most successful. It has been credited with businesses demonstrating more confidence and sharing responsibility to: clean up vacant properties; revitalize the Chamber of Commerce; acquire an events coordinator; schedule substantial events; form a farmer’s market; downtown revitalization; design and install new village signs; lend support to a new radio station application; and the list continues to grow.
There is no question in our minds that Community Futures is one of the most successful Federal programs ever conceived for rural Ontario and of major impact in our own area.
Community Futures Development Corporation of North & Central Hastings and South Algonquin
P.O. Box 517,
Bancroft, Ontario K0L 1C0
Phone: (613) 332-5564
Toll Free: (800) 465-4119
Fax: (613) 332-5628
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Bob Cloes, General Manager