Community Futures program

A buyer of a rural or small-town business may be pointed to a local Community Futures office as a source of financing. Prairies Economic Development Canada describes Community Futures organizations as taking a grassroots approach to community and economic development, primarily focused on creating jobs outside major urban centres. If a purchase would combine several lenders, see stacking CSBFP, BDC and a credit union loan.

What the offices do

PrairiesCan says each organization delivers a mix of services, from strategic economic planning and advisory services to loans to small and medium-sized businesses. Pacific Economic Development Canada’s evaluation of the program in British Columbia says the offices focus extensively on loans but can also provide loan guarantees and equity investments. It also says the loans supported new businesses, expansion and succession in rural B.C. communities.

What to check or ask

• Whether the local office lends to the purchase of an existing business, and what it needs to see.
• How its loan would sit alongside a bank or CSBFP loan, and who ranks first against the business’s assets.
• Who funds and runs your local office. This entry rests on sources for the Prairies and British Columbia; check the program where you are.