Pearl Lorentzen
Lakeside Leader

One of the business opportunities through Community Futures Lesser Slave Lake (LSL) is the Capital Growth Initiative.

These are five-year loans of up to $20,000 for business owned by women. One of the things which makes this loan different from others is that if people pay the first 75 per cent in a timely fashion (consistently making payments for four and a half years), the remaining 25 per cent is forgiven.

“We’re still taking applications,” says Robin-Lee Vance, business analyst with Community Futures LSL.

There is no set deadline for the grants, but there is a set amount of money which was given to Community Futures LSL for this grant.

Once the money is gone, it’s done, says Vance. As of early September, about half of the money had been distributed.

Community Futures is responsible for the Capital Growth Initiative in rural Alberta.

Community Futures LSL serves High Prairie, Slave Lake, and Wabasca and the communities in between including Red Earth Creek. Smith-Hondo and Calling Lake are served by a different branch.

This is funded by the Alberta government. For a business to be eligible, the majority of its owners must be women. The businesses can use it for start-up costs, maintenance or expansion.

The loan is “somewhat specific,” says Vance. People can use it for operating expenses, equipment, leasehold improvements (setting up a rented space), inventory, non-owner salaries, and professional fees.

Applicants must be Canadian citizens or permanent residents, who live in Alberta. The businesses need to have made less than $20 million annually and have fewer than 500 employees. The loan has a prime plus two per cent interest rate.

“A pretty nice interest rate,” says Vance.

Along with the final chunk potentially being forgiven, there are a few other differences from a normal Community Futures loan. People do not have to put up collateral or a contribution requirement (down payment). The first six months are also interest only payments.

This makes it a good deal, says Vance.

Community Futures can also combine this loan with its regular loans, which provide up to $150,000.

“They will have a collateral and a contribution requirement,” says Vance.

People also have to pay back the full loan.