April 1st, 2011 to March 31st, 2012

Providing Flexible Financing and Advice to Business

Think Business… Think CBDC

For more information about CBDC South Coast visit us at:

www.CBDCSouthCoast.ca

CBDC South Coast Annual Report 2008-09

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12

Table

of Contents

Chairperson’s Message 1 Activities and Results 2 Who We Are 4 What We Offer 5 Financial Report 6 Accountability 7

The Organization 8

Executive Director’s Overview 9

Special Acknowledgements 10

CBDC South Coast P.O. Box 37 St. Alban’s, NL A0H 2E0 (P) 709-538-3846 (F) 709-538-3439

The Community Business Development Corporation (CBDC) South Coast has been serving individuals and businesses for 24 years. The area served is the Coast of Bays Region of the south coast of Newfoundland which includes Bay d’Espoir, Connaigre Peninsula to Hermitage Bay and Fortune Bay North Shore sub-regions.

The CBDC South Coast offers business financing and business counseling through the CBDC business office. The organization also provides Employment Assistance Services (EAS) through two EAS offices. The CBDC South Coast is a regional organization serving local communities. There is a local volunteer board of directors that governs and provides oversight to the organization. The locally based manager and employees are responsible for the management and delivery of the services of the corporation.

It is my pleasure to highlight the activities and results of CBDC South Coast for the 2011-2012 year ending March 31st, 2012.

The local CBDC business office of the corporation disbursed 17 small business loans totaling $403,880 contributing to the creation and/or maintenance of 48 jobs. There were also two Self Employment Benefit approvals to individuals starting or taking over a business. The organization has been doing locally administered business lending for over 15 years during which time over $11 million has been provided in business loans to entrepreneurs and businesses in the region.

During the year ending March 31st, 2012, the Employment Assistance Services (EAS) offices provided career assistance and employment services to unemployed individuals that resulted in 71 individuals having an employed status upon follow-up contact. The CBDC South Coast has been delivering EAS for 14 years.

I would like to thank everyone that contributed to another successful year of activity and tangible results. That includes our important partners, our valued clients, our professional staff and our dedicated board of directors. I would particularly like to acknowledge a key partner, the Atlantic Canada Opportunities Agency (ACOA), for their ongoing support. I would also like to acknowledge Mr. Hubert Langdon, Mr. Calvin Blagdon, and Mr. Gordon Kearley who completed their board terms this past year and has provided outstanding volunteer service to the organization and the region through their active board participation.

ERIC SKINNER

1

Chairperson’s Message

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12 2

Activities and Results

Note 1: The amounts in the above report cover service results and lending activity. See the Financial Report section (page 6) for a summary of the audited financial statements.

Note 2: The activities in the purple sections of the above report are that of the Service Canada Community Offices which concluded as at March 31, 2012. Nationally, Service Canada made a change in delivery approach to a scheduled outreach basis to locations where there were previously Service Canada Community Offices. Staff from a Service Canada Centre in Grand Falls-Windsor now travels to the area on designated dates each month.

SUMMARY STATISTICS (Apr 1, 2011 – Mar 31, 2012)

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12

Activities and Results

3

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

Annual Loan Portfolio Principal Balance at March 31st (year end)

Portfolio Balance

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Annual Loan Disbursements (To Loan Clients)

Disbursements

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Annual Loan Payments (From Loan Clients)

Interest

Principal

BUSINESS LENDING BY YEAR

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12

Who We Are

4

We are part of Community Business Development Corporations (CBDCs), a network of independent, not-for profit organizations that work in cooperation with all levels of government and the private sector to meet the needs of small business. In Newfoundland and Labrador, there are 15 corporations, each dedicated to small business development and job creation. There are 41 CBDCs in Atlantic Canada and 269 like organizations across Canada collectively known as the Community Futures Network of Canada.

VISION

To foster and support small business development thus increasing the value of the regional economy, enhancing local employment opportunities, and building stronger communities.

MANDATE

CBDC South Coast has a mandate to stimulate private sector employment within its geographical jurisdiction of the Coast of Bays by providing small businesses with financial assistance, information support, advisory and counseling services, and general business advice.

APPROACH

The CBDC South Coast strives to maintain existing businesses and support new viable business opportunities that will not have an adverse negative impact on existing businesses. The CBDC South Coast also engages in other activities that support the business sector and/or employment.

ABOUT US

The CBDC South Coast has been helping businesses since 1988, proudly serving the entrepreneurs and the communities of the south coast of Newfoundland, the Coast of Bays region. We offer tailored business financing solutions and extensive business support services that makes us different than your typical business lending institution and/or typical business service organization. The primary goal of our organization is to help entrepreneurs, businesses, and social enterprises to do business.

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12 5

SMALL BUSINESS LOANS

Small business loans up to $150,000 are available to both new and existing businesses. Business loans can be provided for business start-up, expansion, and/or improvement.

BUSINESS LOAN PRODUCTS (Tailored to Clients, Businesses, and Projects)

CBDC First-Time Entrepreneur Loan - Financing and support for first-time business owners. CBDC General Business Loan - Financing for existing businesses and entrepreneurs. CBDC Innovation Loan - Financing for development and/or adoption of new technology. CBDC Youth Loan - Financing for young entrepreneurs from 19-34 years of age. CBDC Social Enterprise Loan - Financing for not-for-profits conducting business activities. More information about CBDC Loan Products can be found at www.CBDCSouthCoast.ca .

GENERAL BUSINESS LOAN OPTIONS (For Existing Businesses/Entrepreneurs)

CBDC Ready Capital - Credit line and cash ready financing to keep pace with opportunities. CBDC Asset Capital - Equipment and/or critical asset financing to keep the business moving. CBDC Grow Venture - Maintenance, expansion and/or business modernization loans. CBDC Start Venture - New business concept and/or new business opportunity loans. SMALL BUSINESS COUNSELING, CLIENT SERVICES, AND TRAINING

Small business counseling and client services are provided to individuals and businesses. An Entrepreneurial Training Fund provides reimbursement of training costs to eligible clients. There are various other programs and services provided by the CBDC South Coast and/or partner agencies to which clients are referred. Assistance can also be obtained through the Canada/NL Business site and site partners.

SELF-EMPLOYMENT BENEFIT (SEB)

Qualifying unemployed individuals looking to start or take over an existing business can receive non-repayable financial assistance and counseling support during the first year of operating a business. The SEB Program is provided with the support of the Dept. of Advanced Education & Skills through a federal/provincial funding agreement.

YOUTH VENTURES PROGRAM (AND KICKSTART LOANS)

Youth Ventures Program assists youth with planning and starting summer businesses. This program runs from May to August assisting youth ages 12 to post-secondary age.

EMPLOYMENT ASSISTANCE SERVICES (EAS)

The CBDC South Coast provides two Employment Assistance Services (EAS) offices. EAS provides career counseling and employment support services to unemployed individuals as well as facilitates client access to employment programs and services. The EAS offices are provided with the support of the Dept. of Advanced Education & Skills through a federal/provincial funding agreement. More information about the south coast EAS may be found at www.SouthCoastWorks.com .

What We Offer

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12 6

Financial Report

Statement of Revenues and Expenditures – SCCDC Operations (Summary)

Apr 1, 2011 - Mar 31, 2012 South Coast Community Development Corporation (SCCDC) – Corporation Legal Name

CBDC Office: CBDC Office: CBDC Office: EAS Offices: SC Offices: Total

Revenue Operating SEB Program Youth Ventures Two Offices Two Offices

ACOA 212,375 212,375

AES (LMDA Funding) 55,260 240,650 295,910

Service Canada

47,048 47,048

Fees for Service/Other 48,244 1,000 49,244

NL Assoc. of CBDCs 11,186 11,186

Total Revenue 260,619 55,260 12,186 240,650 47,048 615,763

Expenses

Salaries & Benefits 188,639 45,454 8,439 168,487 31,638 442,657

Overhead/Operations 95,837 9,806 3,747 72,163 15,410 196,963

Total Expenses 284,476 55,260 12,186 240,650 47,048 639,620

Net Income -23,857 0 0 0 0 -23,857

Statement of Revenues & Expenditures - SCCDC Investment Lending (Summary)

Apr 1, 2011 - Mar 31, 2012 SCCDC

Investment

Revenue Lending

Investment Income 239,264

Total Revenue 239,264

Expenses

Interest & Bank Charges 1,210

Loan Loss Provision -35,492

Total Expenses -34,282

Net Income 273,546

Investment lending revenue can be used to offset operational deficits but to date that has not been done due to sufficient operational fund balances.

Balance Sheet – SCCDC (Summary)

As At March 31, 2012

SCCDC

Assets Operating Investment Total

Cash and Term Deposits 114,598 1,272,693 1,387,291

Accounts Receivable 34,399

34,399

Prepaid 4,233 19 4,252

Interest Receivable

211,910 211,910

Capital Assets 8,315

8,315

Investment Loans

2,989,124 2,989,124

Total Assets 161,545 4,473,746 4,635,291

Liabilities

Accounts Payable 4,407

4,407

Accrued Severance 86,429

86,429

Current Maturities LTD

Long Term Debt/Payable

149,638 149,638

Total Liabilities 90,836 149,638 240,474

Total Fund Balances 70,709 4,324,108 4,394,817

Total Liabilities & Balances 161,545 4,473,746 4,635,291

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12 7 7

Accountability

STAKEHOLDER REPORTING

Activities and results of the corporation are reported at the public Annual General Meeting (AGM), in various local media, in publications distributed such as this annual report and in reports to funding partners. The clients of the corporation are kept confidential unless authorized by the client for promotional purposes only.

FUDICIARY RESPONSIBILITY

Well defined policies, procedures, and safeguards are in place covering the receipt and disbursement of all funds. All activities, programs, services, and funds administered by the Corporation are audited annually. Financial results are reported to funding partners and public authorities such as the Canada Revenue Agency. Statistical results are reported monthly and/or quarterly as defined by contractual agreements with funding partners. Budgets are approved by funding partners and monitored regularly.

LOAN PORTFOLIO MANGEMENT AND PROVISION OF SERVICES

Grass root investment decisions are made by the local volunteer Board of Directors. The Board of Directors collectively governs the organization as defined by the corporation by-laws. Management and staff follow established policies and procedures to guide the administration of the loan portfolio and the provision of services.

SERVICE TO CLIENTS

Continually striving to improve and to better serve clients is the goal. Staff of the organization work and live in the communities served thus having an invested interest.

BOARD MEMBER RECRUITMENT

Board member terms are three years and board members can serve a maximum of two three year terms consecutively (six years). Board member opportunities are publicly advertised regularly as openings become available and a candidate selection process occurs. Interested individuals can contact the CBDC South Coast Executive Director at anytime to inquire about future openings.

EMPLOYMENT OPPORTUNITIES

The corporation requires professional staff to manage, administer, and deliver the corporation’s programs and services. External employment opportunities are publicly advertised. Interested individuals can contact the CBDC South Coast Executive Director at anytime to inquire about careers.

QUESTIONS OR COMMENTS

To seek more information on any program or service, contact the staff at the CBDC South Coast offices. Should you not be satisfied with any part of your interaction with our services, please contact the Executive Director.

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12

The Organization

BOARD OF DIRECTORS

Eric Skinner, Chairperson

Sandra Hynes, Vice-Chairperson

Herb Dunphy, Treasurer

Linwood Hunt, Secretary

Carolyn Hamlyn, Director

Douglas Rose, Director

Allan Spencer, Director

Rod Kendall, Director

Ted Hillier, Director

REGULAR STAFF

Jamie LeRoux, Executive Director

Juanita Organ, Development Officer

Geraldine Caines, Client Services Officer

Jean Haggerty, Financial Administrator

Theresa Quilty, Employment Counselor

Jean Buffett, Employment Counselor

Cliff Augot, Employment Counselor

Melissa Spencer, Employment Counselor

8

HOW TO CONTACT OUR OFFICES

For business loans and services contact the CBDC South Coast business office located at the Regional Resource Centre in St. Alban’s. To reach by phone call (709) 538-3846 or call 1-888-303-2232 (toll free from anywhere in the Coast of Bays Region).

For career and employment services contact the nearest Employment Assistance Services (EAS) office located at the Regional Resource Centre in St. Alban’s or on Canada Drive in Harbour Breton. To reach by phone call (709) 538-3305/3597 for the office in St. Alban’s or call (709) 885-2162/2474 for the office in Harbour Breton.

For on-line information visit these websites:

Business Services - www.CBDCSouthCoast.ca

Employment Services - www.SouthCoastWorks.com

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12 9

Executive Director’s Overview

Organization’s Experience

The Community Business Development Corporation (CBDC) South Coast, in the nearly two and a half decades since first being formed, has served thousands of clients and individuals over the years in the areas of business development, employment services, information services, as well as from all the various other programs, projects, and initiatives the organization has delivered. The primary purpose of the CBDC is in the area of business development (financing and services).

The CBDC South Coast has been helping businesses for 24 years and doing locally approved business loans for over 15 years. During the latter, the organization has invested over $11 million in financing into south coast businesses. The CBDC South Coast has grown $2.4 million in public contributions into a $4.5 million revolving loan portfolio & fund. This is the result of the prudent stewardship by both the dedicated board of directors and professional staff.

Hundreds of business loans have been provided to businesses and entrepreneurs in sectors that include retail, wholesale, manufacturing, services, fishery, forestry, aquaculture and agriculture. Annually, in the range of 15 to 40 new loans are disbursed and there are more than 100 business loan accounts managed year round. The most significant activities are those of our clients. Our business clients can be individuals exploring entrepreneurship, a one person sole proprietorship, a business with a few employees, a company with many employees or a non-profit social enterprise. Our employment clients are individuals who want to work, grow their career and/or just improve their overall job options. All of our clients help make our communities stronger.

Helping Businesses Do Business

The CBDC business office provides business loans and services throughout the Coast of Bays. The CBDC South Coast strives to maintain existing businesses and support new viable business opportunities that will not have an adverse negative impact on existing businesses.

The CBDC office can help individuals and entrepreneurs explore new business opportunities, existing businesses to maintain and/or expand operations, and can also assist social enterprises with the same financing and service options as available to businesses. If you need business financing or other types of business services, let the CBDC help you do business!

Helping Individuals to Improve Careers

The Employment Assistance Services (EAS) offices provide career counseling and employment services throughout the Coast of Bays. The EAS offices can help individuals (as per individual eligibility/need/interest) to assess their employment and career opportunities, determine options and possible next steps, access funding for training, obtain work experience, and/or assist throughout the process of job search from resume writing to preparation for connecting with potential employers. If you are looking to improve your employment and career, look up the EAS!

JAMIE LEROUX

The Chair in the “Chairperson’s Message” in this document, highlights another successful year as we head into our 25th year as an organization. Therefore, I will briefly elaborate on the organization’s experience, how we continue to help businesses and how we continue to help individuals.

COMMUNITY BUSINESS DEVELOPMENT CORPORATION • ANNUAL REPORT 2011-12 100

Special Acknowledgements

Board of Directors – Directors Completed Board Terms

During the 2011-2012 fiscal year, Hubert Langdon, Calvin Blagdon, and Gordon Kearley finished their board terms with the CBDC South Coast. They all have served with the board as a director, a member of the executive, and served on many committees with the organization. The CBDC South Coast board and staff first-hand acknowledges their outstanding service and dedication to both the organization and the communities of the region.

Board of Directors – New Directors Joined Board

During the 2011-2012 fiscal year, Allan Spencer, Rod Kendall, and Ted Hillier joined the CBDC South Coast. Collectively they bring a combination of business background, community involvement, educational focus, management experience and organizational understanding. The board and staff look forward to continuing to work with our newest members.

Board of Directors – Director Finishes Board Term

Ms. Carolyn Hamlyn finishes her first board term of three years in the fall of 2012. At that time she will finish her service with the board as she is relocating out of the local area. The CBDC South Coast board and staff wish her well with the move and most sincerely thanks her for serving the organization and the region.

Board Executive – Current Executive

The CBDC South Coast board executive general elections are held every two years. To ensure timely executive continuity, the executive elect is put into place in the spring of each regular election year in advance of the fall AGM. During the past year, a new executive took effect as follows: Eric Skinner - Chair, Sandra Hynes - Vice Chair, Herb Dunphy - Treasurer, and Linwood Hunt - Secretary. The term of the current executive is for the period 2011-2013.

Board Executive – Past Executive

At the 2011 AGM held in the fall, three executive members finished with the executive: Mr. Hubert Langdon, Mr. Calvin Blagdon and Mr. Gordon Kearley. They also served in many other capacities with the board and board committees. Sincere thanks for your exceptional contribution!

Staff – Service Canada Community Offices

Effective March 31st, 2012, the CBDC South Coast concluded local delivery of Service Canada Community Offices, as nationally Service Canada switched to a scheduled outreach with Service Canada staff delivering services from that point forward. Phoebe Rose and Melissa Gallant- Collier were staff of the corporation that provided those services. The CBDC South Coast most sincerely thanks them for their service to clients and wishes them well in their other endeavours.

CBDC South Coast 2011-2012 Annual Report 1.888.CBDC (2232) from with the Coast of Bays Region www.CBDCSouthCoast.ca

BUSINESS SUCCESSION PLANNING: IT IS NEVER TOO EARLY TO START PREPARING! Will You and Your Business Be Ready For When You Retire, Sell, and/or Pass the Reins to Family Or Key Staff? The process can take many years. The below is an excerpt from www.canadabusiness.ca :

Why plan for business succession?

A good succession plan will help make the transfer of your business go smoothly, and allow you

to maintain good relationships with employees and business partners. Succession planning helps

you:

- Protect the legacy of your business

- Maintain a service for your community

- Build value for your business

- Provide financial security for your family and your stakeholders

- Deal with unexpected events (illness, accident or death)

- Prepare for the future

For more information and resources on business succession planning visit: http://www.canadabusiness.ca/eng/page/2819/

BUSINESS CHECK POINT: How does your business perform in the areas of customer service, sales, financial administration and general management? Check it out today! For the Small Business Minder Guide to do your “Business Check Point” visit the below link to view and/or download your free guide: http://cbdcsouthcoast.com/ResourcesAndLinks-Guides.html