BY BRENT FOX

Kings County Register

There is money out there to help small businesses.

The Atlantic Provinces Chambers of Commerce (APCC) is working to ensure there is more.

Speaking at the Eastern Kings Chamber of Commerce (EKCC) quarterly meeting at the Old Orchard Inn May 29, APCC president and CEO Bill Denyar said the challenge is to have an initial access of capital for small and mid-size businesses in the region.

“The irony is that there is lots of money out there, but there is a problem of access.

“The APCC solution is the 'made-in-Atlantic Canada’ solution: a powerful, new economic development tool to help competitive small and medium-sized enterprises.”

Denyar pointed out Atlantic Canadians do invest a lot of money - for example, $1.4 billion in RRSPs a year. Ninety-eight per cent of that is invested outside the region. Nova Scotia is the only Atlantic Province that has Community Economic Development Investment Fund (CEDIF) legislation. A vehicle for local investors to invest in local companies is needed.

There are four areas of responsibility in this, Denyar said: brand management, investment management, a financial and capital loss resource and advocacy.

The APCC has approached ACOA mostly on the matter of a capital loss resource and has been declined, but will attempt another meeting. The aim is to raise $10 million over 10 years.

Denyar pointed out risk mitigation for business include diversification, co-investing, tax credits and the proposed capital loss reserve. Professional staff are also a factor. The APCC hopes to select a pilot area and begin a capital pool.

“We need ACOA partnership to get infrastructure in place.”

Denyar encouraged people to inform their MPs on the importance of such a project.

First Angel Network director Ross Finlay told the chamber his group invests exclusively in the region's businesses.

“We will only invest in Atlantic Canadian companies. We do take a regional approach.”

First Angel Network identifies itself as “Atlantic Canada's association for private investors.” The group's features include a net worth of more than $1 billion, Finlay said. Investments can be from $10,000 to $1 million, are financially sophisticated, are early stage investors and have a hands-on approach. Candidates for investment have to have shown due diligence in their business practices.

Thee group is looking for businesses with, among other things, superior products, high growth potential, global potential, sustainability, quality management, existing and potential customers and professional business practices.

“A lot of the companies we see just aren't ready,” Finlay said, “so we help them get ready.”

Denyar also noted the June 14 to 16 meeting in Halifax to discuss the concept of Atlantica - a business region from St. John's, Newfoundland to Buffalo, New York.