BONNYVILLE – Town council has agreed to increase the budget for its Community Futures Beautification Program in order to be able to continue offering the interest-free loan program to five local business recipients for 2023.
The cause for the needed increase has to do with rising interest rates in Canada.
“Due to the popularity and positive local economic impact of the program, we would like to request the continuation of the Beautification Loan Program in the Town of Bonnyville,” Lisa Ford, General Manager of Community Futures, wrote in a letter to council.
“The terms of the program will be slightly changed as the Bank of Canada rates have significantly increased in the past year. As per PrairiesCan policies, Community Futures Lakeland, must also increase rates.”
The beautification loan program being offered to businesses operating within the town is both an interest-free loan and a grant combined into one program.
Businesses can apply for up to $10,000 in funding, of which 80 per cent is an interest free loan and 20 per cent is a grant. Covering the cost of the grant and interest of the loan is the municipality.
In the first two years that the program was being offered, the Town committed roughly $13,800 to the program per year.
Ford confirmed that all five loans available in 2021 and 2022 had been scooped up and utilized by Town of Bonnyville businesses. An update on those loans and an overview of the Community Futures Beautification Program is expected to be presented to council soon.
For Community Futures to be able to continue offering the loan in partnership with the Town, they are required to set the loan interest rate at prime plus two per cent.
“With current prime rates we estimate the cost to your municipality to offer five loans to be $15,925.75,” stated Ford.
During the Aug. 22 council meeting, Renee Stoyles, the Town’s General Manager of Corporate Services, confirmed that the Town’s 2023 operating budget already has $13,520 earmarked to continue the program.
It was recommended by administration that council increase the funding for the Beautification Program by $2,405.75 to be able to offer another five business loans this year.
Council approved the motion to increase the funding for the Beautification program by the estimated shortfall. The extra $2,405.75 will be funded from the General Operating Reserve, bring the Town’s total contribution for 2023 to $15,925.75.
“It's a really great program. I think it's a win-win for the community, for the town, for the businesses. So, I'm really happy that that we collaborate with Community Futures on this,” said Mayor Elisa Brosseau.
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