Last month, Community Futures Loans Manager Brayden Clark came to the CMCC to discuss the various financing options for fledgling new businesses in the community. A dozen entrepreneurs came to the presentation to learn about the wide range of flexible financing options from this local expert who was an entrepreneur himself.
Clark explained that in addition to helping businesses find the cash they need from a source that best suits their requirements, Community Futures also pro-vides advisory services to help entrepreneurs grow, start or expand their businesses.
Clark discussed the range of financing options for new businesses, from draining personal savings, hitting up friends and family, seeking private lender support, traditional bank loans and lines of credit, and the more flexible options offered by Com-munity Futures (CF). He used clear examples of funding options and explained the decision-making process for CF loans.
Among these options are Inventory loans of up to $10,000, micro-loans of up to $20,000 and expansion loans for established businesses that can be as much as $30,000. Rates on any of these options can be as low as Prime plus 2%, or Prime for not-for-profit organizations. He explained that borrowers may qualify for lower rates from their banks or credit unions, but they would require providing collateral in the form of a mortgage.
This year marks the 40th anniversary of the launch of this business service, which began as a pilot in B.C. The Peterborough office opened in 1985, when they offered a total of $1.2 million in seed funding to local businesses. The local organization now holds more than $13.5 million in loans to local businesses. It is also home to the Small Business Enterprise Centre (SBEC) program, which funded by the Province of Ontario. This group also delivers the Starter Company Plus and Summer Company that provides grants, training and business skills development support to entrepreneurs who qualify for the programs through the demonstration of a commitment to a new business with potential.
Attendees acquired a clear understanding of their financing options and the nature of the support available to them through Community Futures. They left the presentation better equipped to understand the costs associated with the launch of their dream businesses which will be useful as they contemplate the future.