April 11, 2013
Renewed Programs Will Better Serve Needs of Business Partners
A renewal of the province’s business and regional development programs will make it easier for the business community and regional development partners to do business with the Provincial Government. The Honourable Keith Hutchings, Minister of Innovation, Business and Rural Development, announced details on the programs today at the Fishermen’s Centre in Petty Harbour. Minister Hutchings was joined by Paula Sheppard, Executive Director of NLOWE, and Rob Carter, owner of North Atlantic Zip Lines.
“The consolidation of over 20 programs to two umbrella funds will ensure resources are flexible and better able to meet the needs of clients on the ground,” said Minister Hutchings. “Our priorities will focus on developing a diversified economic environment that supports private sector business growth, entrepreneurship, innovation, and long-term sustainable employment opportunities for the people of the province.”
Budget 2013: A Sound Plan, A Secure Future will invest $47 million to support two funds comprising commercial and non-commercial components. Over $36 million will be available to support growth and innovation in the business community through the Business Investment Fund. Over $11 million will be available to support community and regional economic development efforts through the Regional Development Fund.
“The streamlining of these programs is welcome news to our organization, as well as to our member businesses,” said Ms. Sheppard. “A more dynamic and comprehensive funding arrangement for businesses is crucial and a streamlined regional development program will make it easier for NLOWE to meet the needs of its members as well.”
Small and medium-sized businesses are helping diversify the provincial economy, develop innovative industries in regions, and attract talent to Newfoundland and Labrador.
“As an entrepreneur, I commend the proactive changes to the Provincial Government’s business programs,” said Mr. Carter. “Flexibility and ease-of-use are crucial for business owners. The Provincial Government’s support has been invaluable to the development of my business so far and I look forward to continuing my work with them through the renewed programs.”
For more information on business and regional development programs, refer to the backgrounder below.
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Media contacts:
| Heather MacLean Director of Communications Department of Innovation, Business and Rural Development 709-729-4570, 697-4137 heathermaclean@gov.nl.ca |
Paula Sheppard Executive Director, NLOWE 709-754-5555 ext 222 psheppard@nlowe.org |
| Rob Carter North Atlantic Zipp Lines 709-730-1837 zipnl@hotmail.ca |
BACKGROUNDER
Business and Regional Development Programs
Regional Development
The Department of Innovation, Business and Rural Development (IBRD) has identified regional and community development as the key to building vibrant and sustainable regions. IBRD recognizes the essential role played by key industry and business associations, public educational institutions, not-for-profit groups, development groups, chambers of commerce and municipalities who are working on the ground to expand businesses and build communities.
The Regional Development Fund provides non-repayable capital to support non-commercial organizations in activities related to regional and sectoral development, diversification and innovation. These activities include sector and market development, building research and development capacity, advancing regional and sectoral infrastructure, and community, regional and sectoral capacity building.
The fund has two components:
Regional Development
- Focuses on infrastructure, marketing and research; as well as human resource and community development
- Funding is in the form of non-repayable contributions
- Projects must clearly link non-commercial activities to economic diversification and/or business development
Partnership and Capacity Building
- Supports activity that will coordinate community, regional and sectoral insight and planning in concert with the private sector to identify areas for community development and sustainability
- Funding is in the form of non-repayable contributions
Business Investment
The Department of Innovation, Business and Rural Development has identified business and sector development as the key to economic development.
The Business Investment Fund provides a flexible source of funding that will respond to the shifting needs of today’s enterprises, maximize the available support to clients and strategically expand the pool of eligible companies and activities.
These activities include building research and development capacity, investment in business infrastructure, market, product and workforce development - components critical to improving overall competitiveness, productivity, innovation and ensuring strong, sustainable regions.
The fund has three components:
Business Investment
- Provides capital for the growth and expansion of small and medium-sized enterprises, with particular focus on sectors that build on regional strengths
- Funding is in the form of term loans and/or equity investments
Business Development
- Designed to encourage businesses to undertake improvements in technology utilization, adoption of environmental and green technologies, market development, new product development, export readiness, work-skills enhancement and professional technical assistance to enhance productivity, competitiveness and sales
- Funding is in the form of non-repayable contributions
Investment Attraction
- Provides funds for investment in firms expanding or investing in Newfoundland and Labrador that offer economic benefit to the province, with emphasis on new and expanding sectors
- Funding is in the form of term loans, forgivable loans, conditionally-repayable loans, or equity investment
2013 04 11 1:25 p.m.