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Community Futures : Providing the tools for small business success<br />Cara A. Finn – General Manager<br />Cara A. Finn –...
   Community Futures – Local Solutions to Local Problems<br />What are Community Futures Development Corporations (CFDC)?<...
Community Futures – A grass-roots approach to community economic development<br />Community Futures Development Corporatio...
Prince Edward Island - 2
Nova Scotia - 13
New Brunswick - 10
Quebec - 70
Ontario - 61
Manitoba - 16
Saskatchewan - 13
Alberta - 27
British Columbia - 34</li></ul>Industry Portfolio<br />
A unique response to local needs<br />What do CFDC’s do?<br /><ul><li>term loans for local businesses up to a maximum of $...
 business consulting and   resources
 community economic                           development assistance</li></ul>Industry Portfolio<br />
Provide information to business <br />Additional services may include:<br />youth programs<br />computer labs<br />busines...
High impact but low cost<br />A typical CFDC has:<br /><ul><li>an annual operating budget of $300,000 - $350,000
a rural population of 35,000 served - 100,000 in South Western Ontario
created/maintained 300 jobs over last 4 years
volunteer board of 10 community leaders
4paid staff</li></ul>Industry Portfolio<br />
Government funding program results in more cash for community<br />The average CFDC has been provided with $1.55 Million (...
Has an active portfolio of close to 100 loans
Has an average loan size of approx. $30K – (approx. $80,000 in Middlesex) can be as high as $250,000 or more
Has experienced a 3 - 6% default rate on loans
The Middlesex investment fund is expected to reach more than $4 M over the course of the next year and is on track to lend...
Community Futures : Helping build small business<br />BUSINESS CONSULTING<br />& INFORMATION SERVICES<br />Industry Portfo...
Community Futures : Helping build small business<br />CONSULTING<br />One on One General Consultations available for new<b...
Community Futures : Helping build small business<br />RESOURCE CENTRE<br /><ul><li>  Resources may be used in-  house or b...
  A directory of all library materials is available for clients to peruse in print or computerized format</li></ul>Industr...
Community Futures : Helping build small business<br />COMPREHENSIVE WEBSITE<br />www.thebusinesshelpcentre.ca<br />On-Line...
Community Futures : Helping build small business<br />Working with Professional Partners<br />By providing free business p...
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Referral Presentation

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  1. 1. Community Futures : Providing the tools for small business success<br />Cara A. Finn – General Manager<br />Cara A. Finn – General Manager<br />Industry Portfolio<br />
  2. 2. Community Futures – Local Solutions to Local Problems<br />What are Community Futures Development Corporations (CFDC)?<br /> CFDC’s are federally-funded, non-profit, local development organizations run by volunteer boards of directors and salaried staff<br />Community Futures Corporations are not government owned or operated. <br />Industry Portfolio<br />
  3. 3. Community Futures – A grass-roots approach to community economic development<br />Community Futures Development Corporations (CFDCs) are well established in OVER 260 rural communities across Canada. Additional CFDCs are being developed for all of rural Canada.<br /> Middlesex is pleased to be one of over 60 CFDCs in Ontario! Opened in 2002 – it was the first CFDC to be launched in over 10 years!<br /><ul><li>Newfoundland - 15
  4. 4. Prince Edward Island - 2
  5. 5. Nova Scotia - 13
  6. 6. New Brunswick - 10
  7. 7. Quebec - 70
  8. 8. Ontario - 61
  9. 9. Manitoba - 16
  10. 10. Saskatchewan - 13
  11. 11. Alberta - 27
  12. 12. British Columbia - 34</li></ul>Industry Portfolio<br />
  13. 13. A unique response to local needs<br />What do CFDC’s do?<br /><ul><li>term loans for local businesses up to a maximum of $250,000
  14. 14. business consulting and resources
  15. 15. community economic development assistance</li></ul>Industry Portfolio<br />
  16. 16. Provide information to business <br />Additional services may include:<br />youth programs<br />computer labs<br />business seminars<br />export development<br />tourism initiatives<br />CFDCs have a broad network to bring a wide range of services to local business.<br />Industry Portfolio<br />
  17. 17. High impact but low cost<br />A typical CFDC has:<br /><ul><li>an annual operating budget of $300,000 - $350,000
  18. 18. a rural population of 35,000 served - 100,000 in South Western Ontario
  19. 19. created/maintained 300 jobs over last 4 years
  20. 20. volunteer board of 10 community leaders
  21. 21. 4paid staff</li></ul>Industry Portfolio<br />
  22. 22. Government funding program results in more cash for community<br />The average CFDC has been provided with $1.55 Million (over 10 years)<br /><ul><li>Has loaned over $6 Million
  23. 23. Has an active portfolio of close to 100 loans
  24. 24. Has an average loan size of approx. $30K – (approx. $80,000 in Middlesex) can be as high as $250,000 or more
  25. 25. Has experienced a 3 - 6% default rate on loans
  26. 26. The Middlesex investment fund is expected to reach more than $4 M over the course of the next year and is on track to lend a minimum of $1 million to community-based businesses in 2010.</li></ul>Industry Portfolio<br />
  27. 27. Community Futures : Helping build small business<br />BUSINESS CONSULTING<br />& INFORMATION SERVICES<br />Industry Portfolio<br />
  28. 28. Community Futures : Helping build small business<br />CONSULTING<br />One on One General Consultations available for new<br /> start ups or expanding businesses<br />Business plan outlines<br /> as well as developmental<br /> support<br />Consulting Services<br /> are provided Free of charge<br />
  29. 29. Community Futures : Helping build small business<br />RESOURCE CENTRE<br /><ul><li> Resources may be used in- house or borrowed on a short-term basis
  30. 30. A directory of all library materials is available for clients to peruse in print or computerized format</li></ul>Industry Portfolio<br />
  31. 31. Community Futures : Helping build small business<br />COMPREHENSIVE WEBSITE<br />www.thebusinesshelpcentre.ca<br />On-Line: Program Information<br /> Loan Details<br /> Loan Applications<br /> Business Resources<br /> Links to County Resources<br /> Grant Guidelines and Applications<br />Industry Portfolio<br />
  32. 32. Community Futures : Helping build small business<br />Working with Professional Partners<br />By providing free business planning advice<br />By providing an option to clients who are unable to access traditional financing<br />By referring clients who are able to access traditional financing<br />By helping to leverage capital when other financing programs are unable to fully meet a client’s needs<br />
  33. 33. Community Futures : Helping build small business<br />LOAN PROGRAMS<br />
  34. 34. Community Futures : Helping build small business<br />General Loans<br /><ul><li>Up to $250,000 for new and existing small businesses located in Middlesex County (excluding the City of London)
  35. 35. Any legitimate business purposes
  36. 36. Interest normally P+3%; 5 year fixed term
  37. 37. 75% security (combination of personal and business assets) (CFDC of Middlesex County accepts co-signers on debt)
  38. 38. Max. 15 year amortization
  39. 39. Loan Committee review process
  40. 40. Application fee: $100.00</li></li></ul><li>Community Futures : Helping build small business<br />Small Enterprise Loans<br />Up to $25,000<br />New and existing small businesses in Middlesex County<br />Any legitimate business purpose<br />Min. Interest of P +2%; normally P+3%<br />Must show an equity investment of no less than 25% of the value of the loan<br />Must be supported by a solid Personal Guarantee and GSA<br />General Manager review process<br />Application Fee: $50.00<br />
  41. 41. Community Futures : Helping build small business<br />Middlesex Futures Loans<br />For youth ages 18-30<br />Max. of $5000.00<br />New and existing youth-run businesses<br /> in Middlesex County<br />Any legitimate business purpose<br />Min. interest of P+2%; normally P+3%<br />Must have adequate security<br />Must show a commitment of resources<br /> to the company<br />Application fee: $25.00<br />
  42. 42. Community Futures : Helping build small business<br />Main Street Middlesex Loans<br />Up to $10,000 – Matching owner’s contribution<br />Specific building improvements on properties<br /> located within the historic “downtowns” of municipalities within Middlesex County<br />Financing can be used for building renovations for: storefront improvements, repair or restoration of heritage elements, signage/ lighting/ awnings, and other related improvements<br />Min. Int. P+ @%; normally P +3%; 5 yr. fixed term; max. 5 yr. amortization<br />Adequate combination of personal and business security<br />Application fee: $25.00<br />
  43. 43. Community Futures : Helping build small business<br />Non-Profit Loans Program<br />Up to $250,000 for any revenue-generating non-profit organization in Middlesex County (excluding the City of London)<br />Interest rates starting at Prime. Max. amortization of 15 years<br />Must be maintaining/ creating jobs in the local community<br />Financing can be used for any legitimate business purpose<br />Adequate business security<br />Application fee: $50.00<br />
  44. 44. Community Futures : Helping build small business<br />A Successful Application must Demonstrate: <br />Viability of the operation by way of a complete and sound business plan<br />The ability to repay the loan<br />The capability to operate and manage the business<br />A contribution to the local economy through the maintenance/creation of jobs<br />A firm commitment to the business, including a personal investment of funds and resources<br />
  45. 45. Community Futures : Helping build small business<br />INQUIRY<br /> <br /> <br /> <br /> <br /> <br />CONSULTATION<br />BUSINESS PLAN <br /> <br />APPLICATION <br />ANALYSIS/ SUMMARY<br />LOAN RECOMMENDATION<br />LOAN APPROVAL/REJECTION<br />LOAN DECLINE NOTIFICATION<br />LETTER OF OFFER<br />DISBURSEMENT OF FUNDS<br />LOAN AFTERCARE<br />Loan Process<br />
  46. 46. Community Futures : Helping build small business<br />1) INQUIRY<br />Client contacts CFDC office and expresses<br /> interest in learning more about financing options<br />Contact information is collected and entered<br /> into database<br />Client is invited to meet with staff to discuss<br /> their situation<br />
  47. 47. Community Futures : Helping build small business<br />2) CONSULTATION<br />Client and staff meet face-to-face to discuss business <br /> operations and current needs<br />The purpose of this meeting is two-fold:<br /> 1) the client has the opportunity to learn about<br /> CFDC mandate and loan details <br /> 2) the Advisor has an opportunity to learn <br /> about the client’s goals and objectives directly, <br /> and advise accordingly<br />
  48. 48. Community Futures : Helping build small business<br />3) BUSINESS PLAN<br />Client is provided with a business plan outline<br /> and consulted with respect to the necessary components and development.<br />The Advisor remains available to the client throughout the development process. It is common for at least one formal review of a plan to take place, prior to a client making a <br /> formal application for funding.<br />Intern currently on staff to aid clients who require additional hands-on assistance with business planning<br />
  49. 49. Community Futures : Helping build small business<br />4) APPLICATION<br />Once the business plan is in order, the owners will submit the plan, along with a Personal Financial Statement, and Loan Application<br />All applications must be received by the office by the 15th of month in order to be considered at the next Loan Committee meeting (held during the first week of the month following)<br />A loan file is established for the client.<br />
  50. 50. Community Futures : Helping build small business<br />5) ANALYSIS & SUMMARY<br />Staff analyses plan and conducts credit<br /> investigation <br />Any outstanding issues/ inconsistencies<br /> in the plan are addressed with the client<br />A summary of the plan is prepared and<br /> forwarded to the General Manager for <br /> consideration<br />
  51. 51. Community Futures : Helping build small business<br />6) RECOMMENDATION<br />Loans Greater than $25,000<br />Once reviewed, and found to meet all mandated requirements, a recommendation is prepared regarding the Application and is placed on the agenda of the next scheduled meeting of the Loan Committee.<br />Loans Less than $25,000<br />Once reviewed and found to meet all mandated requirements, a recommendation is prepared and is processed in-house by the General Manager<br />
  52. 52. Community Futures : Helping build small business<br />7) APPROVAL/ REJECTION - REVIEWING A LOAN RECOMMENDATION<br />Nature of the Plan<br />Type of Business<br />Expansion/ Start-up<br />Mandate Consistency<br />Location<br />Within Financial Constraints<br />Job Creation within County of Middlesex<br />Appropriate Use of Funds<br />Viability <br />Financial -History - Past Profit Generation (if applicable)<br />Credit History<br /><ul><li>Cash Flow Projections - Viability & Ability to Repay
  53. 53. Ownership
  54. 54. Human Resources</li></ul>Security<br />Personal/ Business Assets<br />
  55. 55. Community Futures : Helping build small business<br />8) OFFER TO FINANCE/ NOTICE OF DECLINE<br />Offer :<br />Letter of Offer is prepared and extended to the client<br />If accepted, legal documents are prepared and forwarded to the client / counsel<br />Declined:<br />Letter of Decline is prepared and forwarded to the client.<br />Personal contact is made with client to detail the reasons why the application was declined. <br />
  56. 56. Community Futures : Helping build small business<br />9) DISBURSEMENT OF FUNDS<br />Once all required legal documentation has been received and reviewed, direct deposit arrangements are established with the client, and a cheque is prepared for disbursement of the loan<br />Client is entered into the loan monitoring system which regularly prompts for payments and documentation required, throughout the term of the loan.<br />
  57. 57. Community Futures : Helping build small business<br />10) LOAN AFTERCARE<br />Advisor remains in contact with the client for the duration of the loan<br />Monitoring of company financials on a quarterly basis. Bookkeeping/accounting advisory provided currently free of charge to all clients<br />Actual results are compared to plan and any<br /> inconsistencies are reported and addressed<br />Site visits take place on an as-needed basis<br /> (determined by either client or CFDC)<br />
  58. 58. Community Futures : Helping build small business<br />Why Clients Work With the CFDC<br />Low cost access to professional consultation and resource material<br />Able to build a confidential and trusted relationship with a consultant/ loans advisor<br />Deal directly with the CFDC regarding loan payments<br />Loans are completely open and application fees are reasonable<br />
  59. 59. Community Futures : Helping build small business<br />Contact us at:<br />CFDC of Middlesex County<br />The Business Help Centre<br />Kilworth Business Park<br /> #6 - 22423 Jefferies Road<br />Komoka, ON N0L 1R0<br /> Phone: (519) 641-6100<br /> Fax: (519) 641-6288<br />www.thebusinesshelpcentre.ca<br />

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