BONNYVILLE – A program that helps both the MD of Bonnyville and Town of Bonnyville’s business community maintain and beautify buildings has been under-utilized so far this year, says Lisa Ford, the general manager of Community Futures Lakeland.
The Beautification Loan Program being offered to area businesses is both an interest-free loan and a grant combined into one program – but supply is limited.
The program, offered through a partnership between Community Futures Lakeland and each municipality, is in its second year and is still accepting applicants for this round of financing.
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.
Currently, three loans are still available to businesses operating in the Town, while all five loans for MD businesses remain available.
The idea for the beautification program was born out of the desire to help local businesses rebound after facing exceptional hardships because of the pandemic and public health measures, Ford told Lakeland This Week.
The three-year loan can be used for virtually any improvement to a business.
Potential projects listed on Community Future’s website include interior and exterior renovations, enhancing a business's curb appeal, upgrading plumbing and lighting, or simply undertaking general maintenance of the building such as repainting faded and peeling paint, repairing damaged areas, and restoring unique architectural features.
“This loan would cover anything that the business wanted to do. It's like a full circle where we hope businesses will hire local contractors, giving contractors an opportunity to work locally,” said Ford. She added that the program would not be possible without the backing of the municipalities.
“It's not just a loan. It's an interest-free loan with a $2,000 grant that was generously provided by the municipalities,” she said, adding, “It’s a little hidden gem.”
To offer such a program, both municipalities have signed agreements to cover the grant portion, as well as pay the loans’ six per cent interest rate.
Each municipality committed roughly $13,800 to the program per year to so that Community Futures could offer five interest-free loans, explained Ford.
The first year the Beautification Loan Program ran, each of the municipalities’ five loans were scooped up. So far only the Town has awarded two loans for the current program cycle.
No end in sight
A recent miscommunication led Town administration to believe that the beautification program would be discontinued due to rising interest rates.
Ford explained that is not the case.
“The contract with the municipality is still in place for the remaining loans still available,” she said. “At this time, we just want to take a pause to see what the interest rate will do and then we could renegotiate again.”
Community Futures Lakeland is eager to see the program continue, but Ford acknowledged that tweaks may need to be renegotiated for the next round of funding to ensure that new interest rates are accounted for.
“What happened was when interest rates started to rise, we ended up being outside of that six per cent contract rate,” said Ford.
If the municipalities choose to subscribe to the program in the future, the contract will likely include a prime plus two interest rate to give leniency to shifting rates.
“The increased interest rate won't affect the business anyway, because the interest on the loan is being paid by the municipality... It's all up to the municipality and what they want to do,” she said.
Town of Bonnyville Mayor Elisa Brosseau, who has been a strong supporter of the program, told Lakeland This Week, “I am very proud of the collaboration between the Town and Community Futures with this project... We have only started to gain momentum. Businesses know about it and are seeking it out.”
As 2023 approaches, Ford hopes more businesses sign-up to take advantage of the program.
“If a business’ appearance is more enticing, it can encourage people to come and shop local,” said Ford.
“We want to make our downtown beautiful. We want to make our businesses attractive for people to come into and be comfortable in, and help businesses have the funds they need to do the things they need to do.”
