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Government of Canada Supports Small Business in Southern Ontario through Canada's Economic Action Plan

Sept 11, 2009

Cobourg, Ontario. Rick Norlock, Member of Parliament for Northumberland Quinte West, on behalf of the Honourable Gary Goodyear, Minister of State (Federal Economic Development Agency for Southern Ontario [FedDev Ontario]), today announced a Government of Canada investment in local Community Futures Development Corporations (CFDCs) to support small and medium-sized enterprises (SMEs) - key drivers of economic activity in Southern Ontario.

Southern Ontario's 37 CFDCs will receive $30 million from the Community Adjustment Fund (CAF) in 2009-2010. This funding is part of the $350 million that the CAF will receive over two years for projects in Ontario. The new measures will increase access to capital and business support for rural SMEs by enhancing products and services offered by Ontario CFDCs.

The Northumberland CFDC will receive $575, 070. "Northumberland CFDC continues to be a great way to invest in our local community. They provide microeconomic stimulus through the direction of a community level board of directors in touch with our local business needs," said Rick Norlock. "I am pleased that the federal government is renewing their commitment to our local businesses in these difficult economic times, and I look forward to the continued successful projects the CFDC will help generate in the coming years."

"This investment will help rural communities strengthen and diversify their local economies," said Minister of State Goodyear. "It will also give SMEs in Southern Ontario opportunities to grow and create new jobs."

Executive Director, Wendy Curtis commented, "The extra funds are timely and welcome! We are finishing our third consecutive year of record growth in lending with over $1 million dollars this year alone. That's a new high for the CFDC. The funds are crucial to helping maintain momentum in small business growth and job creation throughout Northumberland County and we thank the Government of Canada for their support."

Recently, the Government of Canada proposed a five-point stimulus plan for CFDCs in Ontario to improve access to capital for rural SMEs. The points focus on:

increased capitalization for additional loans;
increased loan cap from $150 000 to $250 000 per loan;
increased operating dollars (up to $100 000 per CFDC) to allow CFDCs to perform outreach and get more loans out, more quickly;
enhanced partnerships with the Business Development Bank of Canada and other commercial lenders; and
heightened awareness of CFDCs and the services they provide.
CFDCs are community-based, not-for-profit organizations funded through the Community Futures Program. They are run by boards of local volunteers and are staffed by professionals who encourage entrepreneurship and the pursuit of economic opportunities. CFDCs offer a variety of business and community economic development services, including business planning and guidance, access to capital, and strategic community planning.

To find out more, visit the Ontario CFDCs website.

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For further information (media only), please contact:

Gary Toft
Director of Communications
Office of the Honourable Gary Goodyear
Minister of State (FedDev Ontario)
613-943-7599

Erica Meekes
Executive Assistant
Office of Rick Norlock M.P.
Northumberland Quinte West
613-483-8181

Media Relations
Industry Canada
613-943-2502