For Release
October 12, 2006
Winnipeg, Manitoba Steven Fletcher, Member of Parliament
for CharleswoodSt. JamesAssiniboia, on behalf of the Honourable
Carol Skelton, Minister of National Revenue and Minister of Western Economic
Diversification, today announced that Western Economic Diversification Canada
(WD) and Assiniboine Credit Union (ACU) are partnering to provide a four-year
Micro Loan Program for local enterprises.
Canada's New Government, through Western Economic Diversification Canada,
will provide up to $560,000 towards loan loss support, which will offset a portion
of the risk the credit union incurs when lending to small businesses.
"Entrepreneurs start new, innovative businesses that add diversity to
our economy and create new jobs in our communities," said Steven Fletcher,
Member of Parliament for CharleswoodSt. JamesAssiniboia. "That
is why Canada's New Government recognizes the importance of creating an
environment where entrepreneurs can thrive."
Assiniboine Credit Union will make up to $3.58 million in repayable loans over
four years to Winnipeg entrepreneurs. Typically, these loans do not exceed $35,000.
"Part of our mandate at Assiniboine Credit Union is to serve the underserved
the individuals who are not receiving the right attention and guidance
from more conventional financial institutions," said Nigel Mohammed, Community
Services Manager, ACU. "We see it as our job to help small business owners
get their dream off the ground. The Micro Loan Program allows us to do an even
better job of delivering on our promise to help nurture and grow small businesses
in our community."
Assiniboine Credit Union is a profitable, co-operative financial institution
headquartered in Winnipeg. It has a mandate to make a profit while making a
difference in the community it serves. Established in 1943, Assiniboine Credit
Union has 255 employees serving 57,000 members in 11 branches. Today, through
business expansion and a healthy balance sheet, Assiniboine has grown to be
a competitive force among Winnipeg businesses and will become the second largest
credit union in Manitoba in January when it mergers with Vantis and Astra credit
unions.
Western Economic Diversification Canada (WD) is a department of the Government
of Canada that works in partnership with the provinces, industry associations
and communities to stimulate and encourage diversification of the western economy,
as well as to represent the interests of the West in national decision-making.
For additional information, contact:
Jacquie Sippola
Communications Officer
Western Economic Diversification Canada
Tel: (204) 983-0280
Winnipeg, Manitoba
Randa Stewart
Vice-President
Marketing & Communication
Assiniboine Credit Union
Tel: 204-958-8555
Cell: 204-479-7421
WD Toll-Free Number:
1 888 338-WEST (9378)
Web Site: WD is online at
www.wd-deo.gc.ca.
Backgrounder
Who is eligible?
The Assiniboine Credit Union Micro Loan Program is specifically designed to
benefit entrepreneurs, small businesses and social enterprises meeting the following
criteria:
Assiniboine Credit Union member in good standing
Operating, or about to operate, in the Winnipeg area
Less than 50 employees and average annual sales not exceeding $1 million
To be eligible, interested applicants must clearly show a commitment to starting
or expanding a small business. This may involve demonstrating a significant
time commitment to the start-up or management of the business and some financial
stake in the potential or existing business.
What can the loans be used for?
The Assiniboine Credit Union Micro Loan Program provides access to loans for
small business start-up and expansion in the Winnipeg area. This could include
activities such as:
Research and development leading to commercialization
Pre-commercial and commercial product development
Market development
New product and services capacity
Working capital
What are the terms of the loans?
The loan terms are designed to be flexible to help small businesses maintain
adequate cash flow throughout the year. Individual loans are subject to the
following terms:
Up to five years for repayment
Loans can range to a maximum of $35,000
Flexible repayment terms at ACU's discretion
Assiniboine Credit Union makes the final decision on all loan approvals
Interest rates are set at Assiniboine Credit Union's Prime rate*
plus a risk premium
*The Assiniboine Credit Union Prime rate fluctuates with market interest
rates.
For more information on program and services available through Assiniboine Credit
Union, visit their Web site at www.assiniboine.mb.ca.
