CDC Fills Gap In Business Support Services, Lending

While I tend to miss the long, warm days of summer, I do welcome the return of what seems to be a more structured schedule as we move into the fall. Of course, with that comes the return of many social and business events, where I have already had the opportunity to connect with a number of our community members.

It's hard for me to imagine that even though the Orillia Area Community Development Corp. (CDC) has been providing business support and community economic-development services to the area for more than 28 years, there are still many people who do not realize how beneficial these services can be in supporting their particular businesses or organizations.

I am thinking of one recent conversation, in particular, with a local business owner. I explained that I worked at the CDC and the individual quickly and confidently responded, "Oh, yes. I know the CDC. Your office is on Peter Street."

I confirmed we were located on Peter Street and proceeded to ask, "Are you familiar with the services that we provide?" Unfortunately, the individual’s face went blank and, in a much less confident manner, I was asked, "You help businesses, right?"

Well, that is correct. The CDC is "your business success centre" — that's our motto. But what does that really mean? After some conversation, I was able to provide some very specific ways that the CDC could help the business succeed and the individual has since been in touch with us to take advantage of those services.

This was a good reminder for me about how important it is that we continue to reach out to the community to let them know what value the CDC can offer.

One event I attended recently was a presentation by the Ontario Association of Community Futures Development Corporations, where they spoke about Canadian trends in business-lending practices over the past several years. What was most interesting was the correlation made between the tightening and easing of traditional credit markets when it comes to the historical lending patterns of CDCs across the province.

On occasion, I have had people ask me if we are a "lender of last resort." The answer is always no because that simply does not provide a true picture of what we have to offer at the CDC. The CDC works collectively with business owners and entrepreneurs, and their banks, to find flexible financing and other solutions that best fit their particular situation/business.

The July 2012 Bank of Canada survey results on business lending practices in Canada demonstrate the easing and tightening of traditional credit markets (see chart at bankofcanada.ca/publications-research/periodicals/slos). CDC offices across the province mirrored these results with high loan activity from 2007 to 2010 in tight credit markets, which then dropped in 2011 when banks reported eased credit conditions.

The CDC fills a void in the community when it comes to assistance with finding solutions for financing and access to resources for local businesses. Historically, I think it is fair to say that in times of greater economic uncertainty, the CDC has been relied on more heavily by local businesses, but if I can leave anything with you, it is this: Don’t make us your "last resort."

We can provide flexible lending solutions throughout all economic cycles in conjunction with traditional financial institutions and, furthermore, the services we provide go way beyond just lending money.

Existing business owners, entrepreneurs and individuals who have only just begun to think about starting their own businesses all have the opportunity to access numerous support services through the CDC, including one-on-one business coaching and guidance, business plan review services, business registration support, referrals to community resources, seminars and workshops, online training videos and access to various resource materials. And we are able to offer many of these services free of charge.

I would welcome the opportunity to meet with any business owners to discuss how the CDC can help their businesses succeed. For more information about applying for a loan with the CDC or any of the other programs and initiatives the CDC is involved with, call 705-325-4903 or visit orilliacdc.com.

The CDC is a federally supported not-for-profit organization working with community partners to develop and sustain the local economy through business financing, business counselling and community economic development projects.

Wendy Timpano is the general manager of the Orillia Area CDC.