CBDC Victoria Madawaska-South - Annual Report 2022-23

Message from the President financial support and commitment to the CBDC Victoria Madawaska-South.

Gaïtan Michaud, President

CBDC VICTORIA MADAWASKA-SOUTH

ANNUAL REPORT 2022-23

The CBDC Victoria Madawaska-South is an organization that works with entrepreneurs in our region to facilitate the start-up or an expansion of their business. This is made possible through the programs and services we offer to our clients. Through our quality programs and services, 2022-2023 has allowed us to contribute to the economic growth of our region. The CBDC Victoria Madawaska-South has a multi-level impact in our small rural areas.

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The CBDC Victoria Madawaska-South continues to provide financial assistance and counseling services to small and medium-sized businesses as a communitybased organization. The board truly reflects the entrepreneurial makeup of the region.

Our mandate is to promote the economic dynamism of our region and to provide assistance to entrepreneurs who wish to develop projects and expand their activities.

This past year has been very unsettled for the CBDC Victoria Madawaska-South.

Executive Director retired, interviews for her replacement, new staff and new job descriptions just to name a few. I would like to express my sincere appreciation to the board members for their contribution of time and talent throughout the year.

Their knowledge, experience and dedication to this organization and entrepreneurs are essential to our success.

I would also like to thank our partners: the province of New Brunswick, especially the Department or Post-Secondary Education, Training and Labour and the Regional Development Corporation for their ongoing

The government of Canada, through ACOA, is clearly committed to helping rural communities become strong and vibrant.

Their continued support is a clear sign of their willingness to nurture the business community through their vision and financial support. I would like to thank ACOA’ s team of professionals for their understanding, their support, their guidance, and their assistance. We are very grateful. I would be remiss if I did not thank the mayors and their councils for their support of the CBDC Victoria MadawaskaSouth. We hope that this collaboration will continue with the new Grand Falls Regional Municipality.

Last but not least our accountants, Nadeau Picard et Associés… thank you Lucie and your team.

I would like to express our sincere thanks to our past Executive Director, Denise Lagacé Rioux, and to Ricky Bourgoin, our new Executive Director, for working with the Provincial and Atlantic Associations to improve and promote the CBDC programs.

Ricky is always looking out for the best interest of the CBDC and its members.

Finally, on behalf of the Board of Directors, I would like to thank our dedicated staff: Ricky, Gina, Eric, Julie and Gaëtane. Your professionalism and dedication are key elements that contribute to our success.

Thank You. Gaitan Michaud, President

Message from the Executive Director Mr. Michaud has demonstrated GREAT leadership throughout his mandate with the board. This being his last year as President of the board, I would like to say that I have very much appreciated working along side him. His calm demeanor and wise advice have made my integration pleasant and very fulfilling. Gaitan, my sincere thank you for your dedication and for all your support you have given me in the past 5 months. I wish you only the best in your future endeavors.

Since our beginnings in September 1989, we have disbursed over $48 million in loans, and $2.4 million of COVID-relief loans. As operations return to a new normal after the pandemic, a total of 38 requests for assistance was received in 2022-2023.

Therefore, we were able to uphold our vision.

At the end of March 2023, a total of 30 loans were approved, adding up to $957,639, creating 14 new jobs and maintaining 87 jobs. The CBDC has been able to provide to its clients 14 Consultant Advisory Services (CAS) worth $135,258. This would certainly not have been possible without the support and devotion of our multiple key partners. I am incredibly proud of this achievement considering the post pandemic challenges we have seen.

I would like to thank the Board of Directors for their commitment, thoughtful input, and precious time. Their experience, knowledge and skills are instrumental to our success.

They are the backbone of this organisation.

The CBDC and the business community is in good hands because of the hard work they do.

A special thanks to our Chairman, Mr. Gaitan Michaud, who has given so much of his time and knowledge to this organization.

Last but not least… To my staff. This past year has not been without turmoil and challenges. Changes in management is always stressful and disorienting. You have all made me feel welcomed and part of the team from day one. Your support, your patience and your dedication have not gone unnoticed. My sincere gratitude to Gina, Eric, Gaëtane and Julie. I am confident that our team will continue to remain resilient, resourceful, and supportive to each other.

In everything we do, we need your involvement. I thank you in advance for your passion and participation in our business.

Together we can achieve amazing things.

In closing, I would like to share my goal.

Going forward my goal is to support/coach the team in growing our region’ s business community and support local entrepreneurs by staying committed to the CBDC’ s values, vision and mission. Increasing visibility, providing training and accessing excellent programs to help grow our business community’ s imprint are some of the elements I will focus on. I will continue to work collaboratively with our partners in order to achieve positive outcomes. I know that I will strive to provide exceptional value for the clients of our great community. My door will always be open for discussion and invite everyone to be innovative thinkers.

Ricky Bourgoin, Executive Director

ANNUAL REPORT 2022-23

As the new Executive Director for the CBDC Victoria Madawaska-South, I am excited to share our results for fiscal year 2022-2023.

The CBDC continues to serve the business community by spending both time and money in financial assistance and training programs.

CBDC VICTORIA MADAWASKA-SOUTH

Ricky Bourgoin, Executive Director

I also want to extend my thanks to our past Executive Director, Mrs. Denise LagacéRioux for all the years she as given to this great organisation. She has accomplished too many things to mention and leaves me with very big shoes to fill. Denise’ s contribution was invaluable, and she will certainly be missed by everyone. This being said, I am very happy for you Denise and wish you a healthy and happy retirement.

You certainly deserve it.

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The Impact of CBDC Victoria Madawaska-South: Five Facts to Share CBDC Victoria Madawaska-South (VMS) builds local expertise to develop more wealth in the community and to ensure better resource allocation. Its major decisions are facilitated by the volunteer work of its Board of Directors, whose members are business and community leaders.

CBDC VICTORIA MADAWASKA-SOUTH

ANNUAL REPORT 2022-23

Creating Local Jobs: Under its regular lending programs alone, CBDC VMS helped to create and maintain 101 jobs in the Greater Grand Falls region. The CBDC stimulates the regional economy by reducing local dependence on large corporations.

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Maintaining Rural Populations: Amid the decades-long rural-to-urban exodus, the migratory balance finally seems to be shifting back. CBDC VMS’s challenge in the coming years will be to foster an economic model tailored to the needs of a new population. To take just one example, the company Trésors et Délices is showing that a sustainable business model can be developed in the region.

Leveraging Local Resources: Greater use of local resources is among the trends observed by CBDC VMS. Acquisitions of existing companies, in particular by investors from Ontario, are a prime example. On Grand Falls’ famous Broadway alone, there are three new business owners from other Canadian provinces. Although these investors often have the necessary capital to start up their business, CBDC’s expertise is being called on more than ever before as more information requests are being submitted.

Fostering Cooperation and Solidarity: Mutual aid is instrumental when it comes to creating projects, sharing resources and improving living standards; this is an important consideration for CBDC VMS. For example, in the past fiscal year, an advisory services project was approved to assist with the cycle path and bikeway rehabilitation in Grand Falls. Activities undertaken with the Valley Chamber of Commerce are other examples of CBDCsupported initiatives.

Improving Living Standards: Ideally, CBDC VMS’s impact is meant to be noticed in better local living standards, with services tailored to the needs of often under-represented groups. The CBDC recognizes the Tobique First Nation (Neqotkuk) and would like to forge stronger ties each time a business opportunity arises.

For fiscal year 2022-2023, 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.

Retail: A growing demand for used cars and recreational vehicles requires improved 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 for the year 2022-2023

Applications received

38

Number of sessions

17

Applications approved

30

Amount granted

$26,308

Amount invested

$957,639

Impact on businesses New start-up

7

Existing businesses

22

Total

29

Impact on employment Jobs created

14

Jobs maintained

87

Total

101

Number of business counselling sessions Number of clients

41

Self-Employment Benefit Applications approved

11

Value of assistance

$201,219

Consultant Advisory Services Number of clients

13

Amount granted

$79,259

ANNUAL REPORT 2022-23

Training sessions

CBDC VICTORIA MADAWASKA-SOUTH

Request processed

4

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

With investments of $8.6 million over the past three years, the CBDC Victoria Madawaska-South is positioning itself as a key player in the economic recovery of the greater Grand Falls.

$4

$2.7

$3

$1.5 $2

$0.6

$1

$1.8

$1.8

$0.3

$2.1

$0.8

$1.7 $1.0

$0

2018-19

Number of applications approved for each CBDC loan product

2019-20

2020-21

2021-22

2022-23

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

ANNUAL REPORT 2022-23

20 4.2% $40,000

17

15 33.3% $318,931

11

10

CBDC VICTORIA MADAWASKA-SOUTH

62.5% $598,708

5

5 2

0

0 General Business Loan

First-Time Entrepreneur Loan

Youth Loan

Social Enterprise Loan

0 Innovation Loan

General Business Loan

Youth Loan

First-Time Entrepreneur Loan

With the smallest population-base amongst CBDC offices in New Brunswick, the CBDC Victoria Madawaska-South stands out for its supports to young entrepreneurs in the region.

The number of businesses who received financial assistance over the past five years New Start-Up 50

Existing Businesses

Total Businesses

46 43

40 35

37

38

36 33

29

30 22

20

20

16 13

10 2

0

7

5

2018-19

2019-20

2020-21

2021-22

2022-23

Over the past three years, the CBDC Victoria Madawaska-South has supported 108 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

The quality of the projects approved by the Board of Directors of the CBDC Victoria Madawaska-South contributes to the creation of sustainable jobs based on the needs of the community.

ANNUAL REPORT 2022-23

150

100

0

2018-19

2019-20

2020-21

2021-22

2022-23

Jobs Created

10

67

41

21

14

Jobs Maintained

120

102

51

130

87

Total

130

169

92

151

101

CBDC VICTORIA MADAWASKA-SOUTH

50

6

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 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.

Self-Employment Program*

Benefit

(SEB)

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

First-Time Entrepreneur Loan

Business Counselling

Targeted financing for the first-time entrepreneurs starting or purchasing their first business.

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

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

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.

Innovation Loan

Skills Training

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

Tailored trainings in specialized areas such as marketing development, bookkeeping, feasibility studies and business analysis.

Social Enterprise Loan

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

Tailored financing designed to assist social enterprises.

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

439 Terrace Street, Grand-Sault (NB) E3Z 1G5

CBDC Victoria Madawaska-Sud

506.473.6446

www.madviccbdc.ca

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