It’s been called Waterloo-Wellington’s best-kept secret, but not one to be kept from businesses. The Wellington-Waterloo Community Futures Development Corporation (WWCFDC) is a business aid to be shared if rural businesses are to thrive, say members as their organization moves into its second decade.

With a mandate of bettering economic development in rural communities, the local branch of the Ontario-wide initiative was launched in 2002-2003. Now there are 10 board members and 15 mentors (all volunteers) working with businesses in Waterloo Region’s four townships and Wellington’s five southernmost municipalities.

“There are three main pillars of our business. One is working with municipalities and not-for-profits on strategic planning, (and) writing loan or grant applications. Then, we work with local businesses to help them do business planning – we help them write business plans so they can go to the bank or other investors. We have a really strong training program, we put a lot of effort into that,” Whittaker said.

Started as a transitional aid for farmers moving from traditional agriculture to business about 25 years ago, the Community Futures Development Corporation (CFDC) creates mentoring programs and lends funds for new or existing ventures (for startups, expansion or stabilization plans) of medium and small businesses with the hope of creating jobs in the rural areas. The Waterloo-Wellington branch is one of 61 corporations and is one of the newest.

Over its first 10 years, WWCFDC made loans to 206 businesses in 10 years, 38 in 2013 alone. This year that overall number has already grown to about 220, said Whittaker.

A total of $12.53 million has been invested in businesses by the local organization, $2.3 million in 2013.

Some small businesses are ineligible for loans if they are seen as a liability to the bank, Whittaker explained. At the WWCFDC, ideas and potential often trump the pocketbook.

“Lots of times you have a good business plan but you don’t have equity. But if a person has a good idea, a good business plan but doesn’t have the equity, they would come to us. Based on the business plan and the potential, we would lend money with less equity than a bank would.

“What we are really looking for is somebody who has the idea and the ability to put it in place and usually entrepreneurs have invested all of their money into getting a business or an idea to a certain point and don’t have anything left – that’s when we come in and help them to grow.”

To date, the WWCFDC has assisted 2,837 businesses through counselling (490 last year) and helped to create 1,960 jobs in its operating area. On average, a CFDC branch loan is $51,817. So far businesses are keeping up, as $7.5 million has been repaid to date and average loan loss has been at a steady six per cent over 10 years. All payments go back into the program’s initiatives.

Looking forward, the mentorship and training are just as important as the funding side of the organization, said board member Ross Shantz, who represents Woolwich.

“It may not be a loan that we are offering. I mean we are not competing with banks, that’s not the purpose at all. But, we are there to provide a mentoring service. There are many mentoring services that people here in our townships can take part in and I don’t think they know about this.”

The group averages about 20 business coaching session per month, for which rural businesses are eligible. Those sessions include education on key aspects of websites, time management, small-business legalities, sales and marketing and financial advice. Mentoring is free for loan clients, otherwise a small fee applies for the services.

Some past mentors include businessman Larry Martin, who played a key role in developing economic activity in St. Jacobs before passing away last year at the age of 63.

Along with contributing to job growth one of the WWCFDC’s tasks includes providing resources for non-profits and municipalities. The organization helped Wellington County to complete its first economic strategic plan and helped it achieve an AA credit rating.

The CFDC also partners with the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) created to support economic growth in the province. The government’s Economic Action Plan of 2013 proposed to provide $920 million over five years to renew FedDev Ontario which participates in initiatives like helping small and medium-sized manufacturers compete in a global economy.

Countrywide, the CFDC loaned more than $57 million to businesses in 2011 and $55 million in 2012, helping to create a total of 12,737 jobs in that two-year period. Locally, as more entrepreneurs get wind of the programs, both men think the organization has room to grow.

“As many people that need to use [the programs] should use it. We’ve often been called the best kept secret. If we can get the word out that we’re there and willing and able to provide business services, whether it’s a loan or not, that’s important,” Whittaker said.