Advice for budding entrepreneurs and small businesses in Prescott-Russell
Published: 01/14/2010 by Justin Bromberg
HAWKESBURY – Despite the relatively rough last year in terms of the local economy and regional employment figures across Eastern Ontario, several local organizations have received a boost in funding with the goal of sustaining community development through the creation and promotion of new, local businesses.
Whether it’s for seeking advice on preparing a business plan, skill development sessions, hiring a local young intern or inquiring about a possible loan, the Prescott-Russell Community Development Corporation (PRCDC) would simply like to remind people that its mandate is to serve the budding entrepreneurs and the small businesses of the region.
Geneviève Bougie, project officer at the PRCDC, said there are a number of ways for small businesses in Prescott-Russell to apply for funding under the provincial Eastern Ontario Development Program (EODP).
The EODP, designed to encourage the use of new technologies and the creation of new employment in the region, offers a number of project-specific funding applications that are geared towards non-profit and profit-based organizations: local initiatives, community capacity building, business development, skill development, youth retention, or innovation and technology initiative.
“There’s also access to a capital loan with zero per cent interest, for either a renovation under the retro-fit project or for green projects – for example, to renovate a building,” added Bougie.
Under the EODP funding for “Access to Capital,” loans are available to qualifying businesses and organizations within Prescott-Russell for building retrofit initiatives that increase the marketability of the building or region. Under normal circumstances, applicants seeking assistance for façade improvements will be eligible for up to $25,000 in re-payable, non-interest bearing loans to be amortized over a period up to five years.
The next round of available applications will open on March 1, for a period of six weeks.
Flexible loans
Bougie noted the PRCDC offers loans for commercial businesses, and is generally more flexible than a bank when it comes to the approval process. She noted many applicants come to see her because they have been refused by a bank, either because of credit history or simply because they are too young.
“If you’re young, nobody is going to get approved for a loan, as they simply don’t have enough of a credit history to do so,” said Bougie. “We here are more flexible, either for young people or those with bad debts in the past.”
Under their loan program, the interest is made up of the Bank of Canada’s prime rate plus two per cent.
“We’re there to help businesses enhance the local economy,” she said, adding the PRCDC can act as a “support” for the applicant, either for assistance with an application or in some cases, if they require a referral.
For the loan-granting process, the PRCDC nevertheless has to take the same steps as a bank, but is willing to take more risk: “We have a board of directors, and based on all the information we receive and if the applicant is financially able to repay the loan, we will take more risk than a bank would take. Here we really look at files, and study them.”
Also available is the PRCDC Need a Hand Program for loans up to $10,000 to encourage the development of a local business. It can be used towards marketing, publicity or promotion, productivity, new equipment, or simply to help with working capital.
To apply for the Need a Hand program, said Bougie, one does not have to have been previously refused by a bank, and the PRCDC will have an answer for you within 48 hours or less.
Small business internship program
The small business internship program is available for businesses that wish to add e-commerce, or an electronic communications aspect, to their workflow. Considering the advent of e-businesses in Prescott-Russell is mostly in its initial stage, this internship program is equally flexible and will therefore allow interns to “work in the field of communications and graphic design.”
Through a grant for the private sector, financial support is offered to hire a post-secondary student or qualified individual less than 30 years of age, living in Prescott-Russell, to undertake information and communications technologies not currently within a company’s budget.
