Government of Canada Supports Small Businessnes in Southern Ontario through Canada’s Economic Action Plan

September 03, 2009

St. Thomas, Ontario — Joe Preston, Member of Parliament for Elgin-Middlesex-London, 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.

Elgin Community Futures (Elgin Business Resource Centre) today will receive $500,000 and Middlesex Community Futures will receive $450,000.

MP Joe Preston stated “Our local CFDC offices provide valuable resources to our communities’ economic growth by assisting new ventures and growing businesses.”

“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.”

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.