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Charting a course for expansion
As IDB employees gained experience in financing industrial small businesses and the economy adjusted to peace-time operations, it became apparent that the institution needed to be given the power to serve a wider variety of Canadian entrepreneurs.
The IDB Act, which had first been amended in 1952 to include commercial air services, was amended again in 1956 to include road transport companies, mining companies, construction companies and passenger transportation companies. In 1961, the IDB Act was amended once more, to allow it to grant loans to almost all types of businesses, including retailers and wholesalers, farm businesses, fishing firms, restaurants, hotels and motels.
Ready to serve as many entrepreneurs as possible, IDB opened new regional offices in Halifax and Calgary in 1956. Between 1959 and 1964, it opened 14 new branches, which extended its operations from St. John's, Newfoundland, to Victoria, British Columbia. Many of these new branches were located in relatively rural areas. By establishing offices in these regions, IDB was recognizing business opportunities to which the manufacturing sector had paid little or no attention. This initiative, considered quite daring at the time, was of great interest to the chartered banks and the government.
Another aspect which made IDB different was the way it addressed applicants' needs. When analyzing loan applications, IDB looked at the company's overall strength, which meant that borrowers got much more than just a loan. In many cases, it was their first opportunity of learning how to properly analyze their company's problems. This was one of the primary benefits of a IDB loan, as numerous borrowers would testify.
This growth period was also characterized by the complex issues involved in establishing a credit policy and handling eligibility problems, which were almost as insurmountable as they had been in the previous decade. Mixed enterprises were particularly problematic, as some of their activities were eligible, while others were not. Despite these administrative constraints, IDB continued to grow. In 1964, twenty years after it was founded, IDB had 22 branches across the country and was serving a wide variety of industry sectors.
Another factor impacting IDB's growth was the gradual change in its attitude towards advertising and public relations. In 1955, a first series of ads was placed in 21 newspapers and business magazines. IDB also became more proactive in its personal communications, giving talks to community groups and business associations.
This new approach to advertising was particularly apparent in the 1959 proposal and subsequent decision to make a film about IDB. Through fictional characters, this film told the story of a small business that was starting to manufacture new products and needed a new plant. It showed how IDB processed an application for financial assistance. The film was distributed to the branches, which showed it on local TV networks and to community groups and business associations. Twenty years later, IDB officers were still using this film to help new development banks in other countries set up appropriate procedures.
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