Black Business Initiative Creates Community Investment Community
ECONOMIC DEVELOPMENT--Black Business Initiative Creates Community Investment Fund
The Black Business Initiative has created Nova Scotia's fourteenth Community Economic Development Investment Fund.
The Black Business Community Investment Fund Ltd. is designed to help investors reap economic benefits while stimulating black businesses in Nova Scotia.
"Attracting equity investors into small business is difficult for most entrepreneurs," said Economic Development Minister Cecil Clarke. "Community Economic Development Investment Funds are a great way for Nova Scotians to invest in their own communities. I congratulate the Black Business Initiative for providing a source of venture capital for black businesses. I encourage other community interest groups to follow its lead."
The Community Economic Development Investment Fund provides Nova Scotians with tax incentives and other benefits while raising venture capital for local entrepreneurs.
Since 1999, 13 Community Economic Development Investment Funds have raised more than $5 million with almost 1,000 investors. Five additional funds are expected to offer shares in other communities in the near future.
The Black Business Initiative is the first Community Economic Development Investment Fund that involves a cultural community or community of interest, not a geographic district.
The Black Business Initiative is a provincewide organization that helps build and strengthen black presence within the Nova Scotia business community, said Rustum Southwell, the group's executive director. The new Black Business Community Investment Fund Ltd., "is designed to put money back in our own community by increasing the level of economic activity within the black-owned business community in this province."
Under terms of the Community Economic Development Investment Fund program, the Black Business Community Investment Fund will raise capital, which will then be invested in Nova Scotia companies with at least 30 per cent black ownership.
Investors in the fund can take advantage of a 30 per cent personal tax credit, approved by the provincial Department of Finance. The fund's shares are also eligible for self-directed RRSPs.
Like all Community Economic Development Investment Funds, the investment may also qualify for a 20 per cent provincial guarantee for four years from the time of investment.
The Black Business Community Investment Fund is currently managed by an interim, volunteer board of directors. Fund directors and promoters are actively seeking investors from now until March 3, the deadline for 2002 RRSP contributions.
"Investing in this fund is an important means of supporting the local economy by keeping investment dollars in Nova Scotia, and working for Nova Scotians," said Mr. Southwell.