May 22, 2008
Southern Interior Development Initiative Trust (SIDIT) partners with credit unions for commercial loans
KAMLOOPS -- Jim Thomson, Chair of the Southern Interior Development Initiative Trust (SIDIT), announced today that the Trust has signed a historic agreement to work with credit unions operating throughout the southern interior of British Columbia, including the Thompson Okanagan and Columbia Kootenay regions.
“This relationship with credit unions is a key element in meeting the Trust’s objective of supporting economic development by way of loans and equity funding to qualifying start-up and expanding businesses,” says Thomson.
The partnership will draw on the expertise and capacity of credit unions in providing loan administration services, while allowing SIDIT to minimize internal administration. SIDIT loan terms will be market-based, reflecting the somewhat higher risk profile of many start-ups and expanding businesses.
“Pre-bankable is how we would describe the risk profile of a typical business looking to SIDIT for a loan,” says SIDIT's CEO, Ron Baker. “SIDIT expects to play a vital role in bridging the financing gap faced by many businesses in the early stages. Once the loan becomes bankable, SIDIT’s lending partners may take over the loan by paying SIDIT out, thereby allowing SIDIT to assist future early-stage businesses. This is one more initiative in SIDIT’s quest to develop innovative ways of working with existing agencies and lenders to add value.”
Says Baker: “We would not have reached this milestone without the dedication of Glenn Benischek and Luby Pow of VantageOne Financial Services and the guidance provided by Kim Andres, Dirk Haack and their team at Credit Union Central of British Columbia, in developing the agreement and processes necessary to make things happen.”
"We're pleased to contribute our expertise to this endeavour," says Don Rolfe, Central's President and CEO. "This initiative makes innovative use of the strength of credit unions and will provide a benefit to SIDIT, credit unions and the communities where projects are approved."
Glenn Benischek, CEO of VantageOne Credit Union in Vernon, adds: “Credit unions are uniquely positioned to work with SIDIT, given our expertise in this area and our in-depth knowledge of SIDIT’s market area."
SIDIT is a Public Trust created by the Province of British Columbia with a $50-million allocation to support economic development in the Southern Interior. Governed by a 13-member Board of Directors representing local government and the private sector, SIDIT focuses on opportunities that demonstrate measurable and sustainable economic benefits.
