The objective of this briefing is to assess the economic impact on Ontario of the lending services provided through the Community Futures Program—a federal program designed to stimulate economic development in rural communities.
More Bang for the Buck looks at the economic impact that the Community Futures Program lending service has had on Ontario’s economy over the past six years. The lending program provides funding to Ontario’s 61 Community Futures Development Corporations that, in turn, support small business projects in Ontario’s rural communities. The primary objective of this briefing is to quantify the impact of the Community Futures Program lending service on Ontario’s key economic indicators, such as GDP, employment, income, and government revenues. The Conference Board’s econometric model of the Ontario economy was used to quantify the impact of the real capital investment stream estimated for the 2009–14 period. The analysis evaluates the combined direct, indirect, and induced economic impacts. The Community Futures Development Corporations continue to support economic activity and employment throughout Ontario’s rural communities.
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At a Glance
- The objective of this briefing is to assess the economic impact on Ontario of the lending services provided through the Community Futures Program—a federal program designed to stimulate economic development in rural communities.
- From 2009–14, Ontario’s 61 Community Futures Development Corporations provided a cumulative $398 million in loans to small businesses in the province.
- The impact of lending on overall capital investment is significantly increased through additional funds raised from owners’ equity and third-party lenders.
- Findings suggest that lending by the Community Futures Development Corporations has significant bang for the buck—each dollar in inflation-adjusted lending results in as much as $4.50 added to real GDP.
- The Community Futures Program lending service helped offset the effects of the recession, boosting employment by roughly 3,300 in 2010 and 2011.
- The program continues to support economic activity and employment throughout Ontario’s rural communities.
The report, More Bang for the Buck: The Impact of CFDC Lending on Ontario’s Economy, was funded by the Ontario Association of Community Futures Development Corporations, a member of the Canadian CED Network.
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