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For Release
October 12, 2006
Four Year Micro Loan Program Offers Small Business Financing
Winnipeg, Manitoba – Steven Fletcher, Member of Parliament for Charleswood–St. James–Assiniboia, on behalf of the Honourable Carol Skelton, Minister of National Revenue and Minister of Western Economic Diversification, today announced that Western Economic Diversification Canada (WD) and Assiniboine Credit Union (ACU) are partnering to provide a four-year Micro Loan Program for local enterprises.
Left to right: Steven Fletcher, Member of Parliament, Charleswood-St. James-Assiniboia; Michelle Lalonde and Adriana DeLuca, co-owners, Tiber River Naturals; and Nigel Mohammed, Community Services Manager, Assiniboine Credit Union.
Tiber River Naturals, who hosted the event, makes skincare products that are natural and safe. All products are made by hand and produced locally.
Canada’s New Government, through Western Economic Diversification Canada, will provide up to $560,000 towards loan loss support, which will offset a portion of the risk the credit union incurs when lending to small businesses.
“Entrepreneurs start new, innovative businesses that add diversity to our economy and create new jobs in our communities,” said Steven Fletcher, Member of Parliament for Charleswood–St. James–Assiniboia. “That is why Canada’s New Government recognizes the importance of creating an environment where entrepreneurs can thrive.”
Assiniboine Credit Union will make up to $3.58 million in repayable loans over four years to Winnipeg entrepreneurs. Typically, these loans do not exceed $35,000.
“Part of our mandate at Assiniboine Credit Union is to serve the underserved – the individuals who are not receiving the right attention and guidance from more conventional financial institutions,” said Nigel Mohammed, Community Services Manager, ACU. “We see it as our job to help small business owners get their dream off the ground. The Micro Loan Program allows us to do an even better job of delivering on our promise to help nurture and grow small businesses in our community.”
Assiniboine Credit Union is a profitable, co-operative financial institution headquartered in Winnipeg. It has a mandate to make a profit while making a difference in the community it serves. Established in 1943, Assiniboine Credit Union has 255 employees serving 57,000 members in 11 branches. Today, through business expansion and a healthy balance sheet, Assiniboine has grown to be a competitive force among Winnipeg businesses and will become the second largest credit union in Manitoba in January when it mergers with Vantis and Astra credit unions.
Western Economic Diversification Canada (WD) is a department of the Government of Canada that works in partnership with the provinces, industry associations and communities to stimulate and encourage diversification of the western economy, as well as to represent the interests of the West in national decision-making.
For additional information, contact:
| Jacquie Sippola
|
Randa Stewart |
WD Toll-Free Number:
1 888 338-WEST (9378) |
Backgrounder
Who is eligible?
The Assiniboine Credit Union Micro Loan Program is specifically designed to benefit entrepreneurs, small businesses and social enterprises meeting the following criteria:
- Assiniboine Credit Union member in good standing
- Operating, or about to operate, in the Winnipeg area
- Less than 50 employees and average annual sales not exceeding $1 million
To be eligible, interested applicants must clearly show a commitment to starting or expanding a small business. This may involve demonstrating a significant time commitment to the start-up or management of the business and some financial stake in the potential or existing business.
What can the loans be used for?
The Assiniboine Credit Union Micro Loan Program provides access to loans for small business start-up and expansion in the Winnipeg area. This could include activities such as:
- Research and development leading to commercialization
- Pre-commercial and commercial product development
- Market development
- New product and services capacity
- Working capital
What are the terms of the loans?
The loan terms are designed to be flexible to help small businesses maintain adequate cash flow throughout the year. Individual loans are subject to the following terms:
- Up to five years for repayment
- Loans can range to a maximum of $35,000
- Flexible repayment terms at ACU’s discretion
- Assiniboine Credit Union makes the final decision on all loan approvals
- Interest rates are set at Assiniboine Credit Union’s Prime rate* plus a risk premium
*The Assiniboine Credit Union Prime rate fluctuates with market interest rates.
For more information on program and services available through Assiniboine Credit
Union, visit their Web site at www.assiniboine.mb.ca.
