Students missing the BDC business boat

BY KIRK STARRATT

Kings County Register

The Hants-Kings Business Development Centre enjoyed a successful 2006/ 2007 business year, but executive director Ken Crichton is disappointed student entrepreneurs in Kentville missed out.

During a presentation of the Hants-Kings BDC’s annual report for 2006/ 2007 to Kentville’s December council, Crichton said the agency was unable to reach any students through its Students in Business (SIB) loan program.

“There was not one in Kentville last year,” he said, pointing out student entrepreneurs can borrow $5,000 interest-free and get a 25 per cent rebate once the loan is repaid.

The Hants-Kings BDC is trying to reach youth through Northeast Kings Education Centre, the Nova Scotia Community College Kingstec Campus and Acadia University. He said he would like to see Kentville’s SIB numbers increase.

However, overall, Crichton said the BDC had a very successful year ending March 31, 2007. They have a conglomeration of loan programs through the Atlantic Canada Opportunities Agency (ACOA) and they offer Service Canada’s Self Employment Benefit Program.

All loan decisions go through the board of directors, with the average loan through the BDC $30,000. Crichton said small, community business operators who can’t secure funding through institutions such as banks could come talk to them.

“We’d like to do more and we’re trying to do more,” he said.

Mayor Dave Corkum said the work done by the BDC is much needed and he has run into people who say they have been helped by the organization.

Councillor Eric Bolland asked about a shortfall in ACOA funding reported last year by Crichton during his presentation. Crichton said the Women In Business (WBI) program was not refunded (although some loans continue to be made with residual funds from past budget allocations) and the contract expired for the Technology Development Fund (TDF) program, although there is still residual funding.

Since the BDC operates as a not-for-profit entity, any profit they make from loans or operations is reinvested in the community in the form of more loans.

SIDEBAR:

HEADLINE: The Hants-Kings BDC is:

• one of 41 Community Business Development Corporations in Atlantic Canada; one of 13 in Nova Scotia.

• a non-profit organization serving rural Atlantic Canada through a partnership with ACOA.

• the source of term loans, Women In Business (WBI) term loans and Technology Development Fund (TDF) term loans to $150,000; SEED Capital term loans to $20,000, Students In Business (SIB) term loans to $5,000; and the Self Employment Benefit (SEB) program, small business counselling and business training programs.

• paying back borrowings outstanding at March 31, 2007 of $2,979,000, at an annual interest rate of three per cent. The majority of these funds are amortized over a five-year period.

• looking after 53 CBDC term loans for $3,731,983 through 2006/ 2007, 64 SEED capital term loans for $456,600, 26 SIB term loans for $130,000 and five WBI term loans for $290,000 - for a total of 148 loans worth $4,608,583.

• budgeted to run on $1,050,771 for 2007/ 2008.

• located in Kentville (679-6215), Windsor (798-5717) and Elmsdale (883-8879).