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Minister announces Collective Enterprise Development Program The Department of Development and Rural Renewal in partnership with the Newfoundland - Labrador Federation of Co-operatives announced on October 24, a new Collective Enterprise Development Program (CEDP). The program was announced by Beaton Tulk, Minister of Development and Rural Renewal, and Kenneth Kavanagh, President of the Newfoundland - Labrador Federation of Co-operatives (NLFC). Gerry Byrne, the Member of Parliament for Humber - St. Barbe - Baie Verte, also participated in the ceremony. The program, which has been in operation on a pilot basis to date, has worked well and is now being offered to all parts of the province. "Numerous reviews and consultations have indicated to government that there is a need for a micro lending service, particularly for new enterprise start-ups where business experience is generally lacking," said Mr. Tulk. "I am pleased to announce a partnership with the Federation of Co-operatives to address this need and we have made a contribution of $500,000 to match the federation's investment of $500,000 in the program." Micro business loans typically are less than $5,000 which first-time business people with few assets to offer as security sometimes have difficulty obtaining from a bank. The $1 million is used to guarantee loans advanced by banks and credit unions to micro businesses throughout the province and will also offset the cost of program delivery. Mr. Kavanagh, whose organization is responsible for the delivery of the program said: "Our member co-operatives are pleased to make available this new and innovative service to support job creation." He noted that the program uses lending circles and employment co-operatives to provide a mechanism for self-employed people to work together to benefit themselves and their community. "Financial partnerships with local co-operatives, financial institutions and community development agencies provides for delivery which is responsive to community needs," he said. Human Resources Development Canada, ACOA, the Co-operators Insurance Group, and co-operative organizations in the province are also involved in the program. Lending circles and co-operative projects are currently operating in the St. John's region and on the Great Northern Peninsula, Baie Verte Peninsula and the Bonavista Peninsula. Mr. Byrne, speaking on behalf of ACOA and HRDC, said he was pleased that two pilot projects had taken place in his riding. "From 1995 to 1996, the Red Ochre Regional Economic Development Board helped form three business credit groups with 16 clients, and this year has 15 clients," said Mr. Byrne. "I believe that these pilot projects will become role models for projects in other parts of Newfoundland and Labrador. This program provides people with a hands-on approach to developing their entrepreneurial abilities within their own communities." To date approximately 50 people in Newfoundland have participated in pilot project lending circles and an additional 14 have been involved in self-employment initiatives as members of employment co-operatives. By January 1998 it is expected that 100 people will be participating in the program creating 100 new businesses. "Lending circles and co-operative enterprise development are part of government's agenda for business and economic development," said Mr. Tulk. "This program will aid community development through job growth, rural diversification and new business start-ups, and it should create a positive attitude towards self employment in the province generally.
1997 10 27 9:45 a.m. |
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