The Community Business Development Corporations (CBDCs) have launched a new loan program to assist newcomers looking to start their businesses in Newfoundland and Labrador. What’s unique about this program is that it’s designed to provide financing to those who would otherwise not receive support because of their resident status.

The Newcomer Loan Program provides financing to those who won’t receive support from other financial institutions, including banks, because of their residential status.  

“CBDCs are non-profit organizations that have been in existence in some parts of Newfoundland for over 40 years. Governed by local leaders of the community, we work with all kinds of entrepreneurs to start their business, grow, expand, purchase an existing business, and help keep them running in our rural communities,” says Roseanne Leonard, Managing Director at NL Association of Community Business Development Corporations.  

Through this program, CBDCs and Metro Business Opportunities (MBO) can offer repayable loans of up to $20,000 for newcomers to create a start-up or purchase an existing business in Newfoundland & Labrador. 

“Most of our programs and services have been designed for individuals that have permanent resident status. We haven’t had the opportunity to work with newcomers. Due to funding support from the Government of Newfoundland and Labrador, CBDCs and MBO can now evolve who they can cater to as much as communities are evolving so we are thrilled to now offer our Newcomer Loan Program,” adds Leonard.

“Over the last couple of years, we are starting to see more and more newcomers into our community having a lot of amazing ideas. CBDC’s hands were tied as to how it could help them,” says Leonard.  

“In the last couple of years, we have been working with the provincial government to pitch a new program – a Newcomer Loan Program. CBDC and Metro Business Opportunities will offer this program to anybody who’s currently in the province but doesn’t have permanent residency,” explains Leonard.  

The non-profit organization has received positive feedback from its partners since announcing the launch of this program in November 2023.  Individuals aged 19 and older are eligible for this program who don’t have permanent resident status. All sectors and communities are eligible.   

“This program is one of its kind in Newfoundland and Labrador. We are hearing a lot of positive feedback because it has completely removed barriers to a lot of individuals who are just as passionate as someone with a permanent residency and have great ideas,” adds Leonard.

What Makes Working with CBDC Unique

CBDCs are here to assist entrepreneurs with their small businesses and start-ups, and they do this by providing financing, support, and business counselling to entrepreneurs. CBDCs services are designed for entrepreneurs who require customized financing not normally available from traditional lending sources such as banks or financial institutions.

“Sometimes it isn’t always easy for an entrepreneur to find financing for a business idea but CBDC and MBO create such a relationship with them where they work with the entrepreneur to help their business succeed. With us, when we provide financing, we are helping that entrepreneur put down roots in their community,” says Leonard.  

Flexible loan repayment

According to Leonard, CBDC and MBO are flexible in terms and conditions when it comes to their programs. “On average, the loan repayment for this program will be five years, but it can vary. It will depend on the engagement with CBDC, MBO, and the entrepreneur. We try to be flexible when it comes to working with entrepreneurs. For example, if we get an entrepreneur operating a seasonal business, the financing piece might be tailored to when they are operating,” says Leonard.  

Future plans  

According to Leonard, CBDCs hope to see people gainfully self-employed, creating businesses within their communities, and helping grow the economy within their region. “Within a year or two, if all these funds are allocated, we will have success stories that will help demonstrate a need for continuation of such a program. We can also create a peer networking group of small business owners of newcomers and how they can help each other. There’s a broad opportunity here that we can tap into,” adds Leonard.  

Learn more

To learn more about the Newcomer Loan Program visit their website at https://www.cbdc.ca/en/programs/newcomer-loan-program or connect with your local CBDC or Metro Business Opportunities. CBDCs are here to talk to you about purchasing an existing business, starting your business idea, or expanding your current business with repayable loans with exceptional interest rates.

Source: Saltwire