BARRHEAD - Community Futures Yellowhead East (CFYE) plan to develop and implement a regional investment attraction marketing strategy.
This is what the economic development organization's executive director, Michelle Jones, told Town of Barrhead councillors at their April 22 meeting.
She added that CFYE received funding for the initiative through a provincial Northern and Regional Economic Development program grant.
Community Futures is a not-for-profit, community-driven organization that provides a wide range of small business services and business management tools for people wanting to start or expand an existing business and those looking to sell or buy a business. It was founded in 1986 and is funded by the federal government in Western Canada by Western Economic Diversification Canada. The Yellowhead East branch is based in Whitecourt and is one of 27 in Alberta. Its board consists of locally elected representatives from member communities.
Jones said the regional investment attraction marketing strategy, which is expected to launch sometime in May, is just one of a series of components CFYE, the stakeholder investment committee, plans to implement to enhance economic development and investment in the region.
"The areas that we will focus on are investment attraction readiness, marketing strategies, business engagement, capacity building and regional collaboration," she said.
Jones said that CFYE will hire a full-time regional attraction marketing specialist as part of the initiative.
"Once we identify some of the key benefits to the region, we will be showcasing that identifying that while still supporting our communities, businesses and not-for-profits by providing them with the tools and resources to improve sustainability and attract private investment," she said.
Jones added that this person would also work with municipalities in their economic readiness efforts.
"It is up to us as CFYE regional stakeholders to ensure we are taking advantage of the capacity to add to our region's economic growth and sustainability," she said.
Jones said another area Community Futures plans to focus on in the future is helping businesses develop a continuity plan during natural disasters and other emergencies.
"It started with our first roundtable last week in Jasper, where we discussed the number of natural disasters and resulting business interruptions that are happening across the province and what that means for small businesses," she said.
Jones added they realize CFYE doesn't have an immediate or direct role in disaster planning, but they've come to understand that "small business continuity and recovery is often overlooked."
Coun. Dausen Kluin asked how the interest rates for CFYE's regular loans were determined.
Jones said, for the most part, Prairies Economic Canada Development set the interest rate for Community Future organizations.
"Right now, the minimum we can go to is prime plus two per cent," she said, adding that typically, it is three per cent over the prime interest rate. "Our board, since COVID has been very flexible, going as low as we can to support the economic viability of our region."
However, Jones said CFYE may have to take a second look at how they determine how they set loan interest rates.
"Because of risk and the minimum performance standards we must meet annually, giving out a determined amount of loans," she said, adding that they struggled to meet the target this year.
Coun. Dave Sawatzky asked if Community Futures has worked with housing development stakeholders.
"With builders in promoting multi-family units, things like that," he said.
Jones said CFYE has been looking at a potential green-energy building project.
Unfortunately, she added, due to limited resources, they could not devote much time to exploring the possibility.
Specifically, for Barrhead, Jones said they were looking at ways to work with Northplex Manufacturing, such as "On improving supply chain issues and things like that."
Milestones in 2024
Jones also talked about some of CFYE's achievements and milestones in 2024, including assisting in creating, maintaining and expanding 41 small businesses by providing 557 individuals with business training and small business advisory services.
She added the result is somewhat surprising in that CFYE saw fewer individuals and businesses that met the requirements for qualifying for its loan programs.
"Yet we successfully distributed and financed five new businesses with startups and expansions, creating eight new jobs and investing $215,000 into the region through small businesses," Jones said, adding of those five loans, three were to youth, adults 34 and under, two female entrepreneurs.
Jones added that potential interest in starting a new business might be picking up, saying that although Community Futures is only 20 days into its new fiscal year, it has already received interest from four prospective entrepreneurs looking for loans.
"One for an Indigenous-owned business, one new Canadian and one youth, and one for a business expansion into another community for a total regional investment of $650,000," she said.
Jones added for the entire region, Community Futures Yellowhead East has about $420,500 in regular and Regional Relief Renewal Fund (RRRF) loans, the majority being in the Whitecourt area.
To help small and medium-sized businesses negatively impacted by the pandemic survive, the federal government created the $2-billion RRRF. Most businesses accessed this fund through their bank and applied for $40,000 or $60,000 interest-free, partially forgivable loans.
"The RRRF program added $540 million to the Canadian economy, and as a CF organization, we are able to keep these funds moving forward. No other government delivery partner has been able to keep the recovered funds — Not Economic Development Canada and not the banks. It will be up to us to leverage this opportunity," she said.
Barry Kerton, TownandCountryToday.com
