The inclusion of a Northern Ontario Grow Bonds program is heralded as an exciting opportunity for “northerners to invest in themselves,” says the president of the Northwestern Ontario Associated Chambers of Commerce (NOACC).
“We’re tired of complaining all the time and not creating solutions,” says Kelli Gothard McKinnon. “This is a solution we’ve put together and have been working hard over several years to implement.”
The provincial Liberals are proceeding with a campaign promise to establish a Northern Ontario Grow Bonds program, a funding idea originally proposed by Northern Ontario business leaders.
The pilot program, which will be administered by the Ministry of Northern Development and Mines through the Northern Ontario Grow Bonds Corp., will be fully guaranteed by the province and sold only to northerners. The proceeds raised will be used to fund small- and medium-sized businesses.
NOACC has been lobbying for years for the Ontario government to copy Manitoba’s successful grow bonds initiative.
Gothard McKinnon says the idea of having leverage money with provincial backing is good news for many private-sector projects on the go in northwestern Ontario by providing greater incentives for investors to participate through the program.
“There have been angel investors, but there hasn’t been any incentive to put themselves on the line. With government being able to back new enterprises or existing business, it adds a bit more security to investing in the future in our region.”
Ministry spokeswoman Boni Fox Gray says it is not known what the level of the interest will be for Grow Bonds and market conditions have not been determined, but the government has estimated the target size of the program to be $20 million.
