Wasausink Lands Inc.

Community Report 2001-2002 Building Island Businesses

The Business Development Fund is a program established by WLI in 1997 to help community members build businesses and to put community members to work through those businesses.

The fund now has $250,000 invested in 18 Island businesses, employing more than 40 community members.

The Business Development Fund provides three kinds of loans to community businesses:

start-up loans
working capital loans
capital loans

Start-up Loans
Start-up loans up to $5,000 help start up a business. The loan can be paid back in monthly payments for up to 36 months. The first six months are interest free.

Working Capital Loans
Working capital loans help businesses take on new contracts by sustaining cash flow until the contract begins paying for the services or products the business is providing. Up to 10% of the amount of contracts can be borrowed, to a maximum of $10,000.

Capital Loans
Capital loans help businesses acquire needed space and equipment. These loans can be larger and with longer repayment periods. They require the person applying to have substantial equity in their business and a track record.

Incentives for creating jobs
Capital loans can sometimes be repaid in part by employing community members. WLI may make an allowance for employment credit of up to ten cents on every payroll dollar paid to an employee who is a member of Wasauksing First Nation. This allowance becomes a forgivable portion of the loan.

How to Qualify
To qualify for a Business Development Loan, you must:

be a registered member of Wasauksing First Nation and residency at Parry Island for at least five years.
have no outstanding loans with WLI.
have control of the business yourself and can show you’re qualified to manage it.
show that your business will provide a job for yourself and/or other Wasauksing com-munity members.
show in a written plan how your business will operate and how much money you need.

By March 31, 1999, WLI had made loans to nine Island businesses. However, litigation forced WLI to stop making loans until the favourable judgement of the court this past February. The Business Development Fund is active again, supporting Island businesses, some of which are featured in this WLI Report. Shield:

Eighteen businesses have qualified for Business Development Fund loans. They cover a range of businesses and demonstrate the initiative and enterprise of Island entrepreneurs. Ten of these businesses are featured in this community report. All the money that is repaid for loans and interest goes back into the fund, so there will always be money in the fund to help promote Island businesses in the future.