Business Development

Economic Partners is actively involved in the development of small businesses in the Sudbury East/West Nipissing area. As a Community Futures Development Corporation, Economic Partners provides loans, loan guarantees and equity investments to new or existing businesses that have viable business plans; demonstrate personal commitment; will help maintain or create jobs; and cannot obtain sufficient financing from other sources. Our investments are not considered as grants and they are repayable. The recipient is responsible for the repayment of all the funds disbursed.

Our Board of Directors makes all financing decisions at the community level.

Eligible applicants must demonstrate a commitment to help create and/or maintain jobs and that all other funding sources have been contacted before developing their investment request application. Our staff can assist you in the preparation of a financing request.

Assessment of applications is based on: 

• The business plan (CFDC staff can provide advice);
• Personal contribution of time, money and skills;
• Experience of the people involved in the business;
• Other lenders who invest;
• Security;
• Ability to repay the investment;
• Job creation/maintenance in the community

The following information is normally required to help assess the request for funds: 

• An up-to-date business plan;
• Financial statements (if available);
• Forecasted financial statements;
• Market and competitive analysis;
• Proof of citizenship
  
  

Please note that these requirements are not limited as to what is described above. Economic Partners reserves the right to require additional information to properly assess a request for funding.

The total amount of funds approved will not exceed $150,000, unless approved by Industry Canada/FedNor.

Types of loans available

Term Loans

• The client, who is applying for a Term Loan, must remember that our corporation is limited to $150,000 per company and that we cannot exceed a 10-year amortization period. Like other financial institutions, we must secure our loans with collateral.
• This does not mean that we do not want to participate in projects which cannot be 100% secured, but rather, we recommend to the client to do as much research as possible, to make sure that the study is completed in depth.
• As previously mentioned, a customer must have exhausted any other source of financing, but on the other hand, we can invest in a partnership with one or more financial institutions as well as private investors.

Loan Guarantees

• A Loan Guarantee must be done jointly with a financial institution. These funds are normally as a guarantee for a line of credit.
• A maximum of $50,000 is available and the payment schedule must not exceed 4 years. The client has two options for repayment, either interest payments where the principal is due at maturity or principal and interest payments, the choice is up to the client.
• Nonetheless, the client must remember the funds will be placed in a bank account where the funds are frozen for the length of the guarantee. The Loan Guarantee will be placed in a GIC at a financial institution for the duration of the outstanding loan where interest will be earned at market rate.

Equity Participation

• Equity Participation (purchasing of shares) may only be done if the company is incorporated.
• Should Economic Partners enter into an equity participation position with a client, it will be policy to enter into a buy-back agreement with the principal shareholders of the business. This buy-back agreement will provide a means for Economic Partners’ to sell its shares to the other shareholders at an appraised or predetermined value, that will not be less than the value of the equity that Economic Partners has invested in the business plus a profit at least equal to the commercial rate of interest on the funds invested.
• Economic Partners may only approve loans for up to $150,000 and will only purchase preferred shares that will need to be re-purchased by the shareholders within a 10-year period.

Loan Application Criteria Information:

• Loans must provide creation or maintenance of jobs – i.e. Without the Loan… the job(s) will (would) be lost or not created.
• Seasonal Business will apply if:
  • It is a permanent seasonal Business;
  • It is the prime source of income of the applicant.
• Application for Finance needs credit check authorization.
• EPSEWN Inc. will not provide total consolidation loans or take over any existing debt.
• Please submit your loan application along with your business plan to our General Manager.