CBDC Victoria Madawaska-South - Annual Report 2023-24

Message from the President You will ha ve a n oppor t unit y t o c ons ult t he a nnua l r e por t for news on t he s e a nd ot he r pr oje c t s c ur r e nt ly under de ve lopm e nt .

I would a ls o like t o t ha nk our pa r t ne r s : t he pr ovinc e of Ne w Br uns wic k, e s pe c ia lly t he De pa r tm e nt or P os t -Sec onda r y E duc a t ion, T r a ining a nd L a bour a nd t he R e giona l De ve lopm e nt Cor por a t ion for t he ir ongoing fina nc ia l s uppor t a nd c om m it m e nt to t he CBDC V ic t or ia Ma da wa s ka -Sout h.

Jean-Maurice Gagnon, President

CBDC VICTORIA MADAWASKA-SOUTH

ANNUAL REPORT 2023-24

As P r e s ide nt of CBDC V ic t or ia Ma da wa s ka -Sout h, I a m ple a s e d t o we lc om e you t o our a nnua l ge ner a l m e e t ing. We t a ke pr ide in he lping pr om ot e r s of e c onom ic de ve lopm e nt pr oje c t s by offe r ing s uppor t dur ing t he s t a r t -up, a c quis it ion, e xpa ns ion, t r a ns fe r a nd c ons olida t ion pha s e s .

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But our e ffor t s a r e not lim it e d t o fina nc ia l a s s is t a nc e : we a ls o pr ovide ongoing s uppor t via a wide r a nge of bus ine s s s e r vic e s a nd pr oduc t s . T he CBDC V ic t or ia Ma da wa s ka -Sout h c ont inue s t o pr ovide fina nc ia l a s s is t a nc e a nd c ouns e ling s er vic es t o s m a ll a nd m e dium -s ize d bus ine s s e s as a c om m unit y-ba s e d or ga niza t ion.

T he boa r d t r uly r e fle c t s t he e nt r e pr e neur ia l m a ke up of t he r egion.

Our m a nda t e is t o pr om ot e t he e c onom ic dyna m is m of our r e gion a nd t o pr ovide a s s is t a nc e t o e nt r e pr e ne ur s who wis h t o de ve lop pr oje c t s a nd e xpa nd t he ir a c t ivit ie s .

As we ga r ner gr owing r e c ognit ion wit hin t he loc a l c om m unit y, CBDC V ic t or ia Ma da wa s ka -Sout h is s t r iving to c ont r ibut e t o t he gr owt h of our be a ut iful r e gion. A num be r of e nt r e pr e ne ur -dr ive n c om m unit y de ve lopm e nt pr oje c t s s a w t he light of da y in 2023-2024.

In c los ing, a ll of t his fine wor k is m a de pos s ible t ha nks to t he e nt hus ia s m a nd de t e r m ina t ion of our a m a zing t e a m of pr ofe s s iona ls , le d by R ic ky Bour goin, who are dedic a t e d to m e et ing our c om m unit y’s ne e ds . T ha nks t o t he ir m a t ur it y a nd c onc e r t e d e ffor t s , we a r e a ble t o offe r fina nc ia l a nd a dvis or y s uppor t t o e xis t ing a nd pr os pe c t ive ent r e pr e ne ur s while c ont r ibut ing t o t he flour is hing of our be a ut iful r e gion. In a ddit ion, I c a nnot fa il t o m e nt ion t he m e m be r s of our Boa r d, whos e de dic a t ion, ha r d wor k a nd ongoing s uppor t a r e dr iving t he de ve lopm e nt of our c om m unit y.

T ha nk you.

J ean -Mau r i c e G agn o n , pr és i den t

Message of the Executive Director I would like t o t a ke this oppor t unit y t o t ha nk our loya l c lie nt s for t he ir c ont inue d s uppor t . T o our fina nc ia l pa r t ne r s a nd our a c c ount ing a nd le ga l a dvis or s , t ha nk you for your e xc e lle nt wor k in de veloping a nd de live r ing our pr ogr a m s a nd a s s is t a nc e t ools . Wor king wit h you is a gr ea t ple a s ur e .

At t he CBDC, we a im t o gr ow our r e gion’s bus ine s s c om m unit y a nd s uppor t loc a l e nt r e pr e neur s hip by inve s t ing t im e a nd r e s our c e s in fina nc ia l s e r vic e s a nd pr ogr a m s . T he CBDC a ls o e nc our a ge s e ve r yone t o s hop loc a lly a nd t o ke e p in m ind t ha t s m a ll bus ine s s e s a r e t he ba c kbone of our c om m unit y.

Sinc e it s inc e pt ion in 1989, t he CBDC ha s dis bur s e d ove r $47M in loa ns a nd ove r $2M in COV ID-19 loa ns . Ove r t he pa s t ye a r , t he Inve s t m e nt Com m it t e e r e vie we d 29 ne w r e que s t s for a s s is t a nc e , of whic h 25 we r e a ppr ove d for a t ot a l inve s t m e nt of $1, 197, 917. As a r e s ult , five ne w jobs we r e c r e a t e d while 45 we r e m a int a ine d in t he r egion.

But m e r e ly pr oviding fina nc ia l a s s is t a nc e t o ne w e nt r e pr ene ur s is not e nough. T o e ns ur e long-t e r m s uc c e s s , we a ls o ne e d t o m e e t t he ir t r a ining ne e ds . T ha nks t o ACOA funding via bot h a s s oc ia t ions a nd t o t he De pa r t m e nt of P os t -Se c onda r y E duc a t ion, T r a ining a nd L a bour , 18 c lie nt s a nd non-c lie nt s r ec e ive d t r a ining a nd c ons ult ing s er vic es , for a t ot a l r e giona l t r a ining inve s t m e nt of $120, 413.

F or m os t of t he s t a ff m e m be r s , inc luding m ys e lf, t his pa s t ye a r wa s one of le a r ning a nd gr owt h.

Ne ve r t he le s s , t he t e a m ’s c r e a t ivit y, ha r d wor k a nd r em a r ka ble a c c om plis hm e nt s e xc ee de d our expe c t a t ions . As E xe c ut ive Dir e c t or , I would like t o e xpr e s s m y s inc e r e gr a t it ude t o J ulie , G ina a nd E r ic .

Going for wa r d, m y goa l is t o s uppor t our r e gion’s bus ine s s c om m unit y by s t a ying t r ue t o t he CBDC’s va lue s , vis ion a nd m is s ion. E ffor t s t o boos t vis ibilit y, pr ovide t r a ining a nd e ns ur e a c c e s s t o exc elle nt pr ogr a m s will he lp t o gr ow our be a ut iful r e gion. Wor king ha nd in ha nd wit h our pa r t ne r s t o a c hie ve pos it ive out c om es , we will foc us on de live r ing e xc e pt iona l s e r vic e a nd va lue for our c lie nt s t hr oughout our gr e a t c om m unit y.

T ha nk you!

R i c k y Bo u r go u i n , E x ec u t i ve D i r ec t o r

ANNUAL REPORT 2023-24

It give s m e gr e a t ple a s ur e t o s ha r e wit h you a s um m a r y of t he Cor por a t ion’s a c c om plis hm e nt s over t his pa s t fis c a l ye a r . T his s um m a r y indic a t e s t ha t t he CBDC V ic t or ia Ma da wa s ka -Sout h c ont inue s t o be a m a jor c ont r ibut or t o our c om m unit y’s s oc ia l a nd e c onom ic de ve lopm e nt .

CBDC VICTORIA MADAWASKA-SOUTH

Ricky Bourgoin, Executive Director

T he s t a ff a ls o joins m e in offer ing a s pe c ia l t ha nks t o our Boa r d m e m be r s , bot h pa s t a nd pr e s ent . T he y ha ve a lwa ys be e n t he c or ner s t one of our or ga niza t ion a nd t he y c ont inue t o be a c a t a lys t for it s s us t a ine d gr owt h. T ha nk you for your de vot ion, c ount le s s hour s s pe nt at m e e t ings a nd inva lua ble wor ds of wis dom .

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CBDC Victoria Madawaska-South: playing an important role in five key areas CBDC Victoria Madawaska-South seeks to strengthen local expertise with a view to creating wealth and distributing resources more effectively across the Grand Falls region and Victoria County. Our major decisions are facilitated by the volunteer efforts of our Board members, all of whom are local business and community leaders.

Creating local jobs: Over the past year, CBDC Victoria Madawaska-South helped to create and maintain jobs within the community. Support for small businesses stimulates local development and diversifies the economy.

CBDC VICTORIA MADAWASKA-SOUTH

ANNUAL REPORT 2023-24

Leveraging local resources: Community strength really comes to the fore when local entrepreneurs help one another. A prime example of this collaboration can be seen in the cranberry industry. CBDC Kent congratulates each and every stakeholder striving to find local solutions.

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Fostering cooperation and solidarity: CBDC Victoria Madawaska-South believes in the importance of investing in community-level projects. The Potato Festival, Acanthus Art Gallery, the golf club, the Junior A hockey team, the Network of Women (NOW) and the highschool cafeteria (Polyvalente ThomasAlbert) are all examples of local initiatives that we support. We also promote entrepreneurship as a career choice and organize in-school events to answer students’ questions.

To stimulate the regional economy, we also work closely with the Valley Chamber of Commerce to promote local entrepreneurs.

Maintaining rural populations: In the past 20 years, the regional population rose for the first time. CBDC Victoria Madawaska-South is proud to be making an active contribution to this turnaround by focusing on entrepreneurship and investing in homegrown projects.

Improving quality of life: Over the past year, CBDC Victoria Madawaska-South offered students two months of mentoring aimed not only at giving them professional experience and constructive feedback, but also at strengthening mutual trust with the team. We also support Projet Rouge as part of efforts to assist the Foundation of Escale MadaVic, a non-profit organization that assists family members who have experienced abuse. All in all, our investments and wide-ranging activities alongside small businesses are having a far-reaching impact across the Greater Grand Falls region.

For fiscal year 2023-2024, three lines of business took

the

attention

in

the

CBDC

Victoria

Madawaska-South region Construction: A sharp increase in construction projects requires an improvement in working capital, as well as the creation of new businesses in the field.

Seasonal services: An increased demand for seasonal work services, such as lawn mowing and snow removal, is driving a need for greater working capital.

Professional, scientific, and technical services: A strong demand for financial assistance from the CBDC for companies in this category, with an increased need for suppliers, products and services.

Investment in the region Applications received

29

Number of sessions

10

Applications approved

25

Amount granted

$18,213

Amount invested

$1,197,917

Impact on businesses New start-up

7

Existing businesses

17

Total

24

Impact on employment

Number of business counselling sessions Number of clients

78

Self-Employment Benefit Applications approved

8

Value of assistance

$102,000

Jobs created

5

Jobs maintained

40

Consultant Advisory Services

Total

45

Number of clients

4

Amount granted

$37,948

ANNUAL REPORT 2023-24

Training sessions

CBDC VICTORIA MADAWASKA-SOUTH

Requests processed

5

Building strong entrepreneurial leverage in the Victoria Madawaska-South region Total value of assistance from the CBDC and financial leverage over the past five years Total value of assistance

Financial Leverage

$ 5.0 $

The low impact of leverage shows the reluctance of other investors or lenders to support small businesses, while CBDC Victoria Madawaska-South reports a 20% increase in disbursements compared with the previous year.

$ 4.0 $

$2.7

$ 3.0 $

$1.5

$0.3

$ 2.0 $

$ 1.0 $

$1.8

$1.7 $1.0

$ 0.0 $

2019-20

2020-21

Number of applications approved for each CBDC loan product

2021-22

2022-23

$0.1

$1.2

2023-24

Breakdown of amounts disbursed per loan product (in millions of dollars) 19.2% $229,406

20 ANNUAL REPORT 2023-24

$0.8

$2.1

18

15

10

CBDC VICTORIA MADAWASKA-SOUTH

7

6

5

0

0 General Business Loan

First-Time Entrepreneur Loan

Youth Loan

0

0

Social Enterprise Loan

Innovation Loan

80.8% $968,511

General Business Loan

In fiscal 2023-2024, disbursements for General Business Loans account for a larger share, with an increase of 204% compared with the previous year.

Youth Loan

The number of businesses who received financial assistance over the past five years New Start-Up

Existing Businesses

Total Businesses

50

46 43 40

38

36 33

29

30

22

20

20

27 24

16 13 10

7

5 0

2019-20

2020-21

3 2021-22

2022-23

2023-24

Over the past three years, the CBDC Victoria Madawaska-South has supported 99 new and existing businesses, contributing to an economy designed by local entrepreneurs.

Jobs created and maintained in the community over the last five years Jobs Created

Jobs Maintained

140

Although the impact of loan programs on employability has been declining over the past two years, CBDC Victoria Madawaska-Sud remains a key player in maintaining and creating sustainable jobs in the community.

ANNUAL REPORT 2023-24

120 100 80 60

20 0

2019-20

2020-21

2021-22

2022-23

2023-24

Jobs created

67

41

21

14

5

Jobs maintained

102

51

130

87

40

Total

169

92

151

101

45

CBDC VICTORIA MADAWASKA-SOUTH

40

7

CBDC Programs and Services Who We Are

What We Do

CBDCs are not-for-profit organizations run by volunteers from the local business community who firmly believe in improving the economic viability of their region. There are 41 CBDC offices in Atlantic Canada dedicated to the development of small businesses and assisting entrepreneurs in accessing financing and other business training and resources.

Our objective is to help build stronger communities in Atlantic Canada by stimulating private sector employment in our rural areas.

CBDCs work throughout rural Atlantic Canda in the creation, expansion and modernization of small and medium sized businesses.

What We Offer Entrepreneurs Youth Loan Tailored solutions for young entrepreneurs aged from 18 to 34 that are interested in starting, expanding or modernizing their business.

First-Time Entrepreneur Loan Targeted financing for the first-time entrepreneurs starting or purchasing their first business.

General Business Loan Designed to assist entrepreneurs when traditional avenues of financing are not available, for either creating, purchasing or succession planning.

Innovation Loan Assist in the development of the knowledgebased economy, the adaptation and commercialization of technology.

Social Enterprise Loan Tailored financing designed to assist social enterprises.

439 Terrace Street, Grand-Sault (NB) E3Z 1G5 CBDC Victoria Madawaska South/Sud

Self-Employment Benefit (SEB) Program* Provides financial and coaching support to new entrepreneurs during the planning and startup phase of their new business.

Business Counselling Business counselling in the form of advice to new and established entrepreneurs.

Consultant Advisory Services Available to small and medium-sized business, as well as non-for-profit organization, to access technical and financial assistance by engaging consultants to assist them in various topics.

Skills Training Tailored trainings in specialized areas such as marketing development, bookkeeping, feasibility studies and business analysis. *SEB is funded by the Government of Canada through the Canada-Provincial Governments Labor Market Agreements.

506.473.6446 www.madviccbdc.ca

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