Financing initiative plans to grow rural and remote businesses

The Business Development Bank of Canada is contributing $100 million to a new loan program with Community Futures offices.

The Business Development Bank of Canada has announced a $100-million initiative to reach more business owners living in rural and remote areas.

The opportunity will be made available through Community Futures organizations such as The Venture Centre in Timmins.

“Through this program, the financing that you can get through community futures goes up to $500,000,” said Adil Hassam, vice-president of community banking for BDC.

Officials at The Venture Centre said the partnership will allow them access to additional funds to lend to the businesses they serve.

“Without depleting all of the small amount of investment funds that we have, so we’re able to partner up with BDC and make a bigger impact,” said Roxanne D’Aoust, executive director of The Venture Centre.

‘A big deal to us’

Sebastien Meloche, who owns a welding and fabrication shop in Timmins, said his business accessed funds during the COVID-19 pandemic and it allowed him to expand.

“The Venture Centre gave us a loan, and the BDC, I think, secured our mortgage and all that for that shop, which was a big deal to us, a $2 million shop,” said Meloche, owner of 360 Boring Services.

The BDC said it’s contributing $100 million for the loans that will be shared 50-50 with community futures organizations.

“We’re looking at up to $250 million in GDP impact over five years, so that’s very exciting for the Canadian economy,” said Hassam.

The program will be rolled out in the next few months. The Venture Centre said business owners can contact the office to learn how to prepare for when the funds become available.