Port Blandford business to receive equity funding

Through its Small Business Seed Capital Equity Program, the Department of Innovation, Trade and Rural Development has provided $10,000 in equity funding to Newfoundland Firewood, a division of Clode Sound Recreational Sales Ltd.. The funding will be used to purchase equipment and to make other improvements to help expand the operation into new markets.

"This government recognizes that the small business sector in Newfoundland and Labrador plays a vital role in growing our economy," said Innovation, Trade and Rural Development Minister Kathy Dunderdale. "We must continue to support small businesses like Newfoundland Firewood."

Newfoundland Firewood produces split birch firewood which it sells throughout eastern Newfoundland. The owners started the business in 1997 when they identified a need for the general public to have access to quality firewood. Since then, the company has expanded its client base to private and public campgrounds and exported product to St. Pierre and Iceland.

Newfoundland Firewood will use the government funding to assist with the purchase of a forklift. The acquisition will allow the company to sell pallets of product which is necessary to access and supply new markets in western Newfoundland.

"Newfoundland Firewood is a family-owned business that has contributed to the local economy for the past several years, and this expansion will ensure it continues to do so," said Terra Nova MHA Paul Oram.

The Small Business Seed Capital Equity Program makes equity contributions of up to $50,000 available on a matching basis to new entrepreneurs or existing small businesses seeking expansion opportunities in areas of the economy that offer significant growth potential.

Media contact: Lynn Evans, Communications, (709) 729-4570

2004 03 29                                         2:30 p.m.