Government provides support for rural businesses

The Government of Newfoundland and Labrador has invested almost $400,000 to support two businesses in rural Newfoundland and Labrador. Bon Pelley Enterprises Limited of Springdale and Ocean View Industries Incorporated of La Scie have received funding from the Department of Innovation, Trade and Rural Development�s Small and Medium-sized Enterprise (SME) Fund for product development and operation expansion, respectively.

"The Small and Medium-sized Enterprise Fund was created to support companies that have recognized, and are capitalizing on, distinctive opportunities in strategic growth sectors," said Trevor Taylor, Minister of Innovation, Trade and Rural Development. "Specifically, this funding will assist both central Newfoundland companies to reach new markets, broaden client bases and expand operations."

Bon Pelley Enterprises Limited is using $250,000 from the SME fund to complete the final construction phase of its 65-foot aluminum catamaran fishing vessel. The unique, light-weight craft will boast the ability to travel at high velocity while maintaining low fuel consumption. Upon completion, the catamaran will be an exclusive, multipurpose design suitable to retrofit for the offshore supply industry, fishing or environmental ocean oil retrieval applications. The company further intends to expand operations throughout Canada and eventually into other North American regions. Eight permanent, full-time positions will be created as a result of the project.

Ocean View Industries Incorporated produces and sells ice directly to fishing enterprises, trucking companies transporting fish to plants, and seafood processing plants in the area. Currently, the demand for ice on the Baie Verte Peninsula exceeds supply. Ocean View Industries aims to meet that demand by using $143,655 from government�s SME fund to purchase the necessary machinery and equipment to expand its ice making facility. The expansion will add six jobs to the operation.

The Department of Innovation, Trade and Rural Development�s Small and Medium-sized Enterprise (SME) Fund provides term loans and equity investments to small and medium-sized businesses in strategic growth sectors, and is a component of the province�s Comprehensive Regional Diversification Strategy. Special emphasis is placed on value-added manufacturing, information technology, aquaculture, bio-technology, marine services, agrifoods and tourism, where local competitive impact is not an issue. The fund also targets businesses which have export potential and need assistance to enter or expand in external markets.

Media contact: Lynn Evans, Communications, (709) 729-4570, 690-6290

2006 07 13                9:35 a.m.