RENFREW — The Conference Board of Canada (CBoC) undertook a research project for the Ontario Association of Community Futures Development Corporations (OACFDC) to determine the economic impact on Ontario of the lending services provided through the Community Futures Lending Program from 2009-2014.
This report, More Bang for the Buck- The Impact of the Community Futures Program on Ontario’s Economy, is an update to the CBoC’s June 2010 research report. This new research shows a continued positive impact. Again, it confirms what many involved in the Community Futures Program have long believed: “We find that the program, which is meant to ease credit conditions for small and medium-sized businesses in rural communities, has significant economic clout,” is the way the independent research organization, the Conference Board of Canada (CBoC) sums it up.
The Conference Board applied its well- tested Ontario econometric model, noting that from April 2009 to March 2015, the program disbursed $396 million in loans and raised a total of $1.142 billion in new capital investment funds—with just over $746 million in spending due to investments from owner’s equity and funds borrowed from third-party lenders. A total of 22,600 person-years of employment were created by the program over six years.
The report goes on to point out “for each $1.00 of direct lending through the program, real GDP is lifted by $4.50.” This is up from the $4.22 indicated in the last report.
Excluding the potential boost to corporate income tax revenues, the federal government’s books would stand to improve by a cumulative $307 million over the 2009-14 periods. This compares favourably with the $122 million in federal contributions to support the Community Futures Program over the same time period.
“The key to this program has always been its grassroots focus,” said Diane McKinnon, the Executive Director of Renfrew County Community Futures Development Corporation. “The commitment of the staff and volunteers at our office, who work with and for the entrepreneurs and communities they serve, proves that the Community Futures Program lending services remains relevant and beneficial to Renfrew County’s economy.”
“2016 is an exciting year for Renfrew County CFDC, as we are celebrating our 30th anniversary of providing business and community economic development services in our community,” Ms. McKinnon continues. “This study coincides with our own celebration of helping entrepreneurs through business exploration, start up, expansion, and succession over the past 30 years.”
About Renfrew County CFDC:
•Renfrew County CFDC is funded through the federal government and was established in 1986, with a mandate to administer a community loan fund in support of small and medium-sized businesses.
•The local impact of the lending activity by the Renfrew County CFDC can be determined using the economic impact rule of thumb determined in the Conference Board of Canada’s study of Ontario CFDCs. Total lending by the Renfrew County CFDC from 2009 to 2015 x 4.5 = $36,679,811.50 impact on real GDP.
•Renfrew County CFDC promotes economic growth and diversification that creates and maintains jobs in and around Renfrew County. Renfrew County CFDC has authorized loans totalling over $22,000,000 and has maintained and created 2,592 jobs since its inception
