CBDC Southwest - Annual Report 2022-23

Message from the President

Specialized client consulting services via our Client Advisory Services and the Entrepreneurial Training Fund We were able to offer services focused on assisting business owners to move their business online, address Human Resources Planning and look for strategic opportunities. One on one business counselling and referrals

Murray Doherty, Chairperson

This past year found all of us adjusting to an ever-changing business landscape. The lifting of COVID based restrictions signified for many a renewed sense of optimism but also brought with it a new set of challenges.

During the 2022-2023 year the cost of gasoline and diesel rose sharply. This impacted many small businesses’ ability to generate revenue Some were able to increase their prices and keep operating but at the cost of lower profits, others decided that it was simply too expensive to operate Our local entrepreneurs as well as their families were impacted by the cost of everything from groceries and gasoline to home heating

In addition to rising costs the need for employees moved to the forefront as many businesses put off expansion or decreased their overall operations as they were and still are unable to recruit the needed workers to function at full or expanded capacity to meet the needs of their clients.

Supply chain issues have also impacted business. Shipping costs, as well as production stoppages and slowdowns have left some industries left businesses with little or no product.

All these challenges have necessitated a fundamental change in the way in which businesses operate. Businesses are investing heavily in automation and productivity, as well as the retention of skilled workers so that they may keep their current levels of service but with a shift in hours of operation

We at CBDC Southwest have done our best to meet the needs of the business owners during this period In the 2022-2023 year, we approved a total of 42 loans, valued at over $5.9 million.

In addition to this, we continued to provide targeted services, programs, and funding options to our area businesses so that they could pivot their operations to address the above-mentioned changes and challenges that they faced over the past year We were able to help with:

Virtual and in person group training focused on offering our clients skills and knowledge in the areas of Strategic Management, Time Optimization, Sales, Marketing, social media, Bookkeeping, collections, and pricing to name a few The Canada Digital Adoption Program (CDAP) via the Grow your Business Online program. This program helps small businesses take advantage of e-commerce opportunities. The business can access a network of e-commerce advisors for advice and support and can get up to $2,400 to buy new e-commerce tools. Various virtual and in person information sessions and public presentations

CBDC Southwest is a non-profit organization made up of volunteers from within our rural communities We have called heavily upon our volunteer board members over the past few years and this past year was no exception

Our board members were called to assist in many ways such as attending in person and virtual board meetings, as well as to provide feedback, guidance, and support. Our board members also help to ensure that we can provide the best programs and services to our clients.

We want to take this opportunity to thank you our board members for your support, the countless hours of time that you give without hesitation, and for providing expert advice and guidance to CBDC Southwest as we continued to navigate another challenging economic climate You all have made an impact in our rural communities and our statistics reflect this.

We would like to take this opportunity to acknowledge key partners that have assisted Southwest over the past year.

Atlantic Canada Opportunities Agency

The Department of Post-Secondary Education, Training and Labour, and Working NB

Ignite Fredericton, and Planet Hatch Opportunities New Brunswick

Thank you for working with us this past year Together we made a difference.

To the team of Southwest, you have all gone above and beyond once again this year. The team members have done amazing work.

Congratulations on another successful year

In closing, we at CBDC Southwest will continue to adapt to meet the needs of rural businesses and clients in the coming fiscal year, while we continue to invest in our rural communities.

Murray Doherty, Chairperson

Message from the Executive Director

total investment of $6 5 Million in the rural communities of Carleton, York, Sunbury, and Queens Counties.

This successful year would not have been possible without the support of our loyal clients Thank you for your trust and support and for encouraging your friends, family, and associates from our service area to consider us in their business startups, expansions, and projects Our achievements during this past year would have been impossible without the numerous clients we work with each day.

Director

The past year 2022 2023 has been an optimistic one. The long-term COVID based restrictions were removed and life for all intents and purposes resumed a more familiar routine

Our organization has continued to work together with our partners over the past year to provide new and existing clients with access to funding, counselling, training and as well as the much-needed support to keep their businesses operating in this challenging economic environment.

This year it gives me great pleasure to share with you that we approved over $7 6 million of investment for our area business owners. We disbursed a total of $6.3 million to 125 SMEs

Under our Regular Investment funds, Southwest disbursed:

13 general business loans with a total dollar amount of $2,658,794, 12 Youth Loans with a total dollar amount of $940,518, 17 First-Time Entrepreneur, and Social Enterprise Loans, with a total approved dollar amount of $2,335,202

In addition to our loans, we also approved 32 Self-Employment Benefit (SEB) applications for a total of $595,256.

These investments in turn have created and maintained a total of 184 full-time and parttime jobs and have allowed for a total investment of $6.5 Million in the rural communities of Carleton, York, Sunbury, and Queens Counties

As many of you are aware Southwest is a nonprofit organization This year, we continued to call heavily upon our volunteer board members for their support and guidance. Our board members volunteer their time, which is time away from their work and family, as they believe in the power of supporting our rural areas. Your contributions of time, guidance, expertise, and trust helped to make this year a successful one.

A tremendous thank you to the Team of CBDC Southwest. I am extremely lucky to have such a dedicated team of professionals. You all understand the power of assisting rural communities and share the CBDC Southwest vision I know that you work tirelessly weekends, evenings – whatever it takes to get the job done. How could anyone ask for more? This successful year is great team achievement. I send a heartfelt thank you to Matthew, Richard, Honey-Lee, Sean, Elma, Timothy, and Cody, our newest addition to the team. This organization would not be what it is without your hard work, dedication and support each day, Thank You!

As we look forward to the next year of operation, I am confident that the CBDC Southwest will continue to service the needs of our rural communities, rise to the challenges, and changes that are inevitable, while continuing to do what has made us all stronger, placing the rural communities and businesses we serve first

Heather Hubert, Executive Director

Heather Hubert, Executive

The Impact of the CBDC Southwest: Five Facts to Share

CBDC Southwest is a non-profit organization dedicated to the growth and expansion of rural businesses located throughout Carleton, York Sunbury, and Queens Counties. We have been providing services in the form of business financing, training, counselling, and support for the past 39 years. CBDC Southwest has invested over $84.7 Million in the form of business loans to our rural entrepreneurs for business start-up, expansion, or maintenance during this time. The CBDC's major decisions are facilitated by the volunteer work of its Board of Directors, who are business owners and members of our local rural communities.

Local Job Creation: During the past fiscal year, CBDC Southwest helped create and maintain 148 jobs in the community. Supporting small businesses stimulates the local economy and helps reduce communities' dependence on large businesses

Maintenance of Rural Populations: CBDC Southwest experienced an increase in requests for larger loans in the past few years The average loan size increased by 5.2% during the 2022-2023 fiscal year compared to the previous year. CBDC Southwest is contributing to a new positive inter-regional net migration with sustainable jobs with the help of entrepreneurs in our rural communities. CBDC Southwest’s Board of Directors helps to support rural, community focused, and viable projects that traditional financial institutions struggle to support. CBDC Southwest will continue to be a driving force supporting our rural projects.

Leveraging Local Resources: CBDC Southwest draws on resources from multicultural organizations such as information on permanent residency to support our growing clientele of newcomers CBDC Southwest also helps to support our local indigenous communities

by partnering with the Joint Economic Development Initiative (JEDI) to provide information sessions on our programs.

Cooperation and Pulling Together: CBDC Southwest is proud of its local involvement with the workforce strategy for the Greater Fredericton area and the Woodstock area (for Victoria and Carleton counties) This initiative is in partnership with the Government of New Brunswick, ACOA and various economic stakeholders, the initiative aims to ensure workers have the skills and opportunities they need, employers have the skilled workers they require, and the various regions’ workforce ecosystem supports both with more clarity and collaboration.

Increasing Living Standards: CBDC Southwest's collaboration with the community extends to supporting nonprofit organizations. During the 2022-2023 financial year, loans were granted in sectors such as childcare, and housing and, environment. The CBDC Board of Directors values the contributions that these organizations make to our rural communities

For fiscal year 2022-2023, three lines of business took the attention in the CBDC Southwest region. A significant increase in applications in these sections was observed when compared to past years.

Wholesale & Retail Tourism Construction

Investment in the region for the year 2022-2023

Building strong entrepreneurial leverage in the Southwest region

Total value of assistance from the CBDC and financial leverage over the past five years

Over the 2022-2023 year our rural entrepreneurs have been starting new ventures and expanding current ones. Many businesses are still being cautious in their expansions due to the uncertain economic conditions over that have been even more unstable over the past year. This caution has been reflected in the amount of loans approved for the 20182019 fiscal year. Since inception, CBDC Southwest has injected $84.7 million in the community.

Number of applications received and approved for each CBDC loan product

Breakdown of amounts disbursed per loan product (in millions of dollars)

In 2022-2023 Southwest approved 13 General Business Loans with a total disbursed dollar amount of $2,658,794, a total of 12 Youth Loans with a total disbursed dollar amount of $940,518, as well as a total of 17 First-Time Entrepreneur and Social Entreprise Loans, with a total disbursed dollar amount of $2,335,202.

The number of businesses who received financial assistance over the past five years

Southwest had an slight decrease in the total number of startups from 25 to 23, and a slight decrease in the total number of existing businesses from 18 to 17 that received financial assistance during the 2022-2023 fiscal year compared to the previous year Interest in CBDC Southwest is still very strong

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

Southwest recorded a small decrease in the jobs created and maintained in the region for 20222023 compared to last year with 148 compared to 153

CBDC Programs and Services

Who We Are

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

What We Do

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 mesium 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 Entreprise Loan

Tailored financing designed to assist social enterprises.

Self-Employment Benefit (SEB) Program*

Provides financial and coaching support to new entrepreneurs during the planning and start-up phase of their new business

Business Counselling

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

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

*Please note: Programs and services delivered by CBDCs may vary by region.

*SEB is funded by the Government of Canada through the Canada-Provincial Governments Labor Market Agreements.