Adam Bramburger
Beaver Staff
It was a record year at the Prince Edward-Lennox and Addington Community Futures Development Corporation (PELA CFDC) in 2017-2018, with $1.8 million in new lending to clients.
“That’s a new watermark in terms of activity and support for local growing small business,” said executive director Eoin Callan, adding through its lending program last year the not-for-profit funding agency helped create or support 312 jobs benefitting the economies of the two counties.
At the end of the fiscal year, PELA CFDC had cash holdings of $1.2 million in its investment fund and an investment fund balance of $6.9 million. The fund had a loan leverage ratio of 1.51.
The organization also continued to offer business advisory services, helping 98 businesses. Some 148 in-depth interviews were conducted, the organization received 39 referrals, and offered 17 workshops. In total, it estimates 228 jobs were created and maintained through the service.
Looking at PELA CFDC’s loan funnel, some 532 general inquiries were received. Of those inquiries, 168 businesses started an advisory process and 33 applied for loans. The conversion rate on those reaching the application stage was quite high with 24 — 73 per cent — approved.
The lending of the $1.8 million resulted in $2.6 million in leveraged investment.
Callan said PELA CFDC carried a bad debt ratio last year of about nine per cent of its lending portfolio, which was higher than its seven-per-cent target, but that reflected a conscientious decision to clean up some bad debt on the books.
“That’s always a painful decision, but sometimes it’s a necessary one and we came to the conclusion it was in our case,” he said. “We looked at some of the investments that have been made in the 2011-2012 period and came to the conclusion they probably weren’t coming back.”
Callan said with those investments off the books, the numbers suggest that ratio will probably been even lower than targets as the majority of investment is performing ahead of targets and expectations.
PELA CFDC board chair Angela Miller says the numbers show the staff and board have not been sitting idly and she encouraged those interested in starting or growing business to look to the federally and provincially funded not-for-profit to help them in the 2018-2019 fiscal year.
“We have presently a grant application program we operate. We have a loan function for small business in the community. We have an awesome staff that is really good at business counselling,” she said. “If you are running a small business and would like some support on how to do a business plan, some steps forward about funding, or need help with all those things to run a business, that’s what we do.”
Just wrapping the organization’s 30th annual meeting Monday at the Waterfront River Pub and Terrace in Napanee, Miller said the board is eager to focus on innovation and to assist the positive economic trends both Prince Edward and Lennox and Addington are experiencing.
“Both counties are doing well right now. Lennox and Addington is growing by leaps and bounds and in Prince Edward County, tourism is a large focus and there’s lots of tourism, that’s helping,” she said.
Miller said innovation could come in the agricultural sector and it could also come from an influx of people relocating to rural areas in retirement that might wish to start small businesses, for example.
She also said PELA CFDC may look to see if it can assist with affordable housing as both communities look to find answers.
Board member Donna McNeil, a Tamworth-area resident who grew up in Prince Edward County, said while PELA CFDC has a large and varied coverage area, she’s been impressed by the way its board and staff look to the big picture.
“We have been trying to bring forward as much as possible for small, medium, and large-sized businesses,” she said. “We all have very different needs, but we’re in the same boat together.”
With like-minded people who have experience in business in the communities and beyond, she said the PELA CFDC model works in ensuring investments are successful and impactful. She said she sees a feeling of “hope” in the business community, knowing that people are noticing what the area has to offer. McNeil said board members are driven by a desire to deliver results based on that confidence.
“We’ve had so many success stories and that’s what really drives us,” she said.