Newfoundland and Labrador Product Development Strategy

- 68 -Federal Government ProgramsAtlantic Canada Opportunities AgencyBusiness Development Programo Offers access to capital in the form of interest-free, unsecured, repayablecontributions/loans. This program is designed for businesses, however non-profitorganizations providing support to the business community may also qualify.o The maximum level of assistance is 50% towards eligible capital costs for start-ups,expansions, modernizations and related costs, and up to75% for specific elements ofoperating costs such as professional studies, marketing, market training and qualityassurance programsClient Advisory Serviceso Permits ACOA to provide aspiring or existing business owners with access to assistancefrom a range of professional services, on a cost-shared basis.o The services can include assistance with market research, developing marketing programs,accounting and business management.Strategic Community Investment Fundo A five year, $135M funding program (beginning in 2001) focused on supporting strategiceconomic development and community strengthening initiatives in rural Atlantic Canada;o Eligible recipients include non-commercial, not-for-profit organizations such asdevelopment associations and municipalities.ACOA has locations across the province with a regional office in St. John’s and 10 officesstaffed by professionals throughout the province. Community Business DevelopmentCorporations, supported by ACOA, offer early stage, revolving fund financing and technicalassistance to businesses from 15 offices throughout the province. As well, theCanada/Newfoundland and Labrador Business Service Centre, supported by ACOA, islocated in St. John’s.CommentsNumerous comments were received from industry and key stakeholders about fundingprograms, particularly the ACOA programs, including:o A need for more flexible terms (longer repayment schedule) and a higher percentage(e.g. 75% as opposed to the current BDP limit of 50%) were identified;o A need for more support and assistance with planning projects was identified, in termsof design, interior finishing, business planning, etc. This includes advice and technicalhelp from persons that are qualified to provide such assistance.o Some operators believed that assistance should only be available to existingproperties, those with a proven track record, for expansion or upgrading, not newbusinesses, or that there should be a different funding formula for existing businesses.THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study