Often times before a prospective entrepreneur’s dreams can become reality, they must overcome many unavoidable hurdles. Where they turn and who they talk to before proceeding can be a daunting task. Luckily for Peterborough and 268 other communities across Canada, there are local Community Futures Development Corporations (CDFC) available to lend a helping hand.

CFDCs provide communities with a variety of services including:

• business development loans
• technical support
• training
• information

In addition to the business development component, CFDCs involve themselves in a wide array of community initiatives—including strategic planning processes, research and feasibility studies, and the implementation of a diverse range of community economic development (CED) projects.

The Peterborough branch of CFDC opened its doors in 1985 and has been a pillar in the business community ever since. It was created to become a potential money lending source to entrepreneurs who may not qualify for a loan through traditional sources such as banks and credit unions. Currently, it is run by a 16-member volunteer board that comes from various industries located either in Peterborough or in the surrounding Peterborough County. The Chairman of the Board is Dan Stanford, owner of Cabinetree, while the General Manager of operations is Tonya Kraan.

When it comes down to importance, the securing of a small business loan is at the top of the list for most entrepreneurs. To qualify for a loan, there are many checkmarks along the way. The first step to take in the process is an initial meeting with Michelle, who is the resident Business Loans Officer at CFDC.

What you will need to prove or have completed when meeting is...

• Good credit history
• Reasonable security
• Reside in Peterborough county or a plan to relocate to it
• Completed business plan
• A personal net worth statement
• A cash flow forecast
• Completed loan application form

All of these templates are available on their website Peterboroughcfdc.ca. The application will be reviewed and presented to the Board of Directors for a decision at the next Board meeting.

The Vital Role CFDC Plays

The beauty of the CFDC is that it is there to help you and is community based. It doesn’t look at itself as competition to much larger banks and credit unions but rather as another avenue to consider before taking a leap of faith as an entrepreneur. Every lender has different criteria for their loan programs. The CFDC’s number one criteria is job creation. If you have a business plan that can show long-term sustainable job creation, its Board will take that into consideration when reviewing your loan application—not just profitability which many of the larger institutions insist on.

Since 1985, the CFDC’s loan portfolio has grown from $1,500,000 to more than $8,000,000 by investing in more than 650 businesses within the City and County of Peterborough. Many of the local businesses you deal with on a daily basis have probably dealt in some way shape or form with this local initiative. Their cumulative job creation total is now 3,245 people from these 650 businesses, which if combined as a total number is more than the number of people who work for Peterborough’s largest employer!

A recent study found that CFDC loan recipients have higher business survival rates than businesses who do not seek the services of a CFDC: 88% vs. 66%. Also, businesses that receive CFDC loans grow faster than those that don’t—average growth revenue of 14.9% vs. 6.9%.

While the CFDC doesn’t create jobs, they’re more than happy to hopefully help you to. For more information, you can visit them at 351 Charlotte Street, visit peterboroughcfdc.ca or follow them on Twitter @ptbocfdc. They’re open Monday – Friday from 8:30 a.m. to 4:30 p.m.. Call to book an appointment at 705.745.5434.

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