Harper Government Invests in Regional Diversification in Picton

PICTON, ONTARIO--(Marketwired - April 9, 2015) - Federal Economic Development Agency for Southern Ontario
(FedDev Ontario)

Today, FedDev Ontario Minister Gary Goodyear, along with Member of Parliament for Prince Edward-Hastings Daryl Kramp, announced that early-stage technology companies and small-and medium-sized enterprises from across southern Ontario will benefit from venture capital financing and business support.

The Harper Government is providing a $5 million contribution to the Prince Edward/Lennox & Addington Community Futures Development Corporation (PELA CFDC) for a pilot project to establish a $10 million early-stage venture capital fund. The federal contribution is also leveraging $5 million from First Stone Venture Partners through a partnership agreement to establish the first rural-based venture capital fund.

This project will help develop a technology cluster in the region that will diversify the rural economy and support the re-attraction of youth to the community by providing higher wage, full-time employment opportunities.

The federal contribution, through FedDev Ontario's Investing in Regional Diversification (IRD) initiative, is aimed at supporting the long-term development of stronger, more diverse economies in southern Ontario communities. IRD leverages unique regional assets and local expertise to attract new investment and opportunities for economic growth and development.

Quick Facts

• The PELA CFDC delivers a wide variety of programs and services to support community economic development and small business growth.
• The project will encourage the attraction of knowledge sectors firms seeking early stage venture capital funding by offering specialized venture capital financing and counselling & mentoring services to high growth potential businesses.
• The project is expected to provide venture capital financing and business support services to 25 early-stage technology small- and medium-sized enterprises.
• The CFDC anticipates that the SMEs will create 155 full-time equivalent jobs and maintain 95 full-time equivalent jobs during the project.

Quotes

"Our Government's top priority remains creating jobs and opportunities for Canadians. Today's announcement does just that by providing early-stage businesses with capital which will grow and diversify the economy." said the Honourable Gary Goodyear, "Our Government will continue to focus on our low-tax plan to create jobs and growth."

• The Honourable Gary Goodyear, Minister of State for FedDev Ontario

"The support CFDCs provide to rural communities and SMEs in southern Ontario is integral to economic development and job creation. Our Government is committed to investing in CFDCs like PELA whose diverse employment opportunities will bring businesses and jobs to the area and will lead the way for other rural communities to mirror their successes."

• Daryl Kramp, Member of Parliament for Prince Edward-Hastings

"This investment by the federal Government shows a trust in PELA CFDC and faith in the people of this region. The results of the joint investments in early stage businesses by the angel fund "First Stone" and the federal Government will have a profound impact on our community in terms of jobs and economic spin-offs to further diversify our economic base."

• Angela Miller, Board Chair, PELA CFDC

Related Products

Speech: Investing in Rural Diversification for PELA CFDC

Associated Links

Investing in Regional Diversification

PELA CFDC

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