Northern Ontario Grow Bonds went on sale Monday, giving investors the opportunity to make an investment while contributing to local business growth and northern economic prosperity.
And Fort Frances Coun. Tannis Drysdale, who helped conceive the idea back in 2001, couldn’t be happier to see the initiative come to fruition.
“It’s very interesting to see something you worked for so long finally become something real,” she said yesterday.
Coun. Drysdale first began working on the grow bonds initiative four years ago while serving as president of the Northwestern Ontario Associated Chambers of Commerce.
At the time, NOACC was looking for a way to boost the economy in the north while giving businesses a feasible means to access funds to start up or expand.
After refining their proposal, NOACC submitted it to the province.
Then, backed by the Northern Ontario Municipal Association and Northern Ontario Development Network, it lobbied Queen’s Park for the past few years to adopt the grow bonds concept and establish an investment pool that would create a new source of capital for businesses to start up or grow.
This past December, Premier Dalton McGuinty announced grow bonds would be launched as a pilot project this spring.
“There were some changes to it, and it’s a much larger program than we anticipated,” said Coun. Drysdale.
“I’m 100 percent positive it will help businesses grow in the north,” she added. “It’s not a cure-all, and it’s never been presented as such, but it’s a positive step.
“Now northerners have an opportunity to invest in their own communities,” she explained. “They can rest assured that their investments will not help build Bay Street. They’ll help build Scott Street.”
Grow bonds will be available for purchase until April 11 in increments of $100 to a maximum of $500,000. Proceeds will be used to fund loans to small- and medium-sized businesses in the north.
The bonds feature a competitive interest rate of 4.0 percent for a five-year term.
People can purchase the grow bonds by telephone, on the Internet, or by acquiring application forms from the Civic Centre, the local Chamber of Commerce, local participating businesses, and a variety of Ontario government offices here.
For more details, call toll-free 1-866-668-5437 or visit www.northernontariogrowbonds.com
This initiative is part of the government’s Northern Prosperity Plan designed to help build a strong and prosperous economy that provides a high quality of life and increased investment opportunities in the north.
“We promised a new northern investment and loan opportunity program in the 2004 Ontario budget and now we are delivering a program that is good for investors and businesses as well as the northern economy,” Finance minister Greg Sorbara said in a press release issued Monday.
“We are offering a competitive rate that is fully guaranteed by the government.” he added. “The capital raised will stay in the north for new and expanding businesses.”
“I am very proud of the grow bonds program because it is all about stimulating investment, job growth, community development, and business opportunities here in Northern Ontario,” Northern Development and Mines minister Rick Bartolucci noted in the same release.
“I urge people in the north to take advantage of this safe and competitive investment opportunity, and I encourage small- and medium-sized businesses to apply for loans through this worthwhile pilot program,” he added.
The Northern Ontario Grow Bonds pilot program has two components: the sale of bonds and the loan program for businesses.
Loan applications are being accepted until April 15.
By increasing the total amount of capital available for business start-ups and expansions in the north, grow bond loans will help attract and retain investment and create jobs in Northern Ontario.
New and existing small- and medium-sized businesses that are located and controlled by residents in Northern Ontario are eligible to apply for loans.
Loans of $125,000 to $1 million will be provided to approved applicants for capital investments. Funding to any one project will not exceed 50 percent of eligible costs.
Eligible projects must result in an increase in permanent, full-time employment in their business operations in Northern Ontario. Businesses also are expected to repay their loans prior to the five-year maturity date of the bonds.
The Ministry of Northern Development and Mines is overseeing the evaluation and administration of the grow bonds loans.
Information about the loans program, and acquiring applications, is available on-line and through the toll-free number listed above.
Fort Frances Times
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