Capital Pools Helping to Build Communities
Whether it's for cranberries, concrete or digital content, Nova Scotians are welcoming the opportunity to help build their communities by investing in local capital pools.
Ten capital pools have now been launched under Nova Scotia's Community Economic Development Investment Fund program, including five this year with others in the works. The funds total almost $2 million in value so far. The money has been reinvested into communities stretching from Cape Breton to southwestern Nova Scotia.
They've also ranged in purpose, supporting ventures as varied as cranberry fields to a concrete supplier. Three are currently seeking investors: Production School House, an advanced digital media training centre in Windsor, Hants Co.; West Nova Agro Commodities Ltd., a grain storage facility in Lawrencetown, Annapolis Co.; and Highest Tides Investment Cooperative, whose first project is the building and operating of an ecotourism centre in Masstown, Colchester Co.
Other funds in the works include fast-growing areas such as the life sciences sector. "The ability to raise capital through the fund program will facilitate investment into Nova Scotia's life sciences industry," said Andy Stone, project co-ordinator of the proposed Nova Scotia Life Sciences Opportunities Fund. "This type of investment will stimulate growth in an emerging sector and help to attract and retain employees from the knowledge-based labour force."
The province's Community Economic Development Investment Fund program was developed to encourage Nova Scotians to invest their savings at home. Currently, less than two per cent of an estimated $600 million in annual RRSP purchases by Nova Scotians is reinvested back into the province.
Nova Scotians who buy shares in community economic development funds qualify for tax advantages. They receive a 30 per cent tax credit and can hold the shares as investments in self-directed RRSPs. In addition, the province guarantees the last 20 per cent of investments against loss for the first four years.
"The use of local development funds to support enterprises such as these represents community-building at its most fundamental," said Economic Development Minister Gordon Balser. "The funds allow communities to make decisions for themselves. They ensure local control over investment decisions, they support local enterprises, and they help create jobs locally."
Investments in Production School House can be made through Hants Ventures Inc., which is seeking to raise between $400,000 and $1 million to invest in the new media centre. The centre offers advanced training in producing digital content for the Internet, CD-ROM and broadcast. Investors can find out more information on the Internet at www.productionschoolhouse.com, or contact Brian Watling at 1- 800-303-7073.
West Nova Agro Commodities Ltd. is selling shares to raise between $120,000 and $250,000. The equity will be used to invest in a new commodity centre that will initially market and process the sales of feed grains and forage. The centre officially opened this month. Investors can find out more by contacting West Nova Agro at 902-584-3736.
Highest Tides Investment Cooperative is looking to raise between $600,000 and $900,000 to invest in new businesses in Colchester and Cumberland counties. This initial offering will help fund the construction and opening of the Fundy Ecotourism Interpretation Centre. For more information, contact Eric Jennings at 902-662- 2816.
More information on Nova Scotia's Community Economic Development Investment Funds program is available on the Internet at www.gov.ns.ca/ecor/pubs/cedguide, or by contacting Chris Payne, manager of community investment funds, at 902-424-1259.