NEW MICRO-CREDIT FINANCING FACILITY ESTABLISHED

Released on October 14, 2004

Saskatchewan exporters seeking financial assistance to develop new markets and expand their business will benefit from a new micro-credit facility – nextrade finance – to be established by the Saskatchewan Trade and Export Partnership (STEP).

Today, Stephen Owen, Minister of Western Economic Diversification and Minister of State (Sport) and Saskatchewan Industry and Resources Minister Eric Cline announced a $1.725 million contribution through the Canada-Saskatchewan Western Economic Partnership Agreement (WEPA) to provide pre- and post-shipment financing for Saskatchewan export companies to grow their export business.

Over the next three years, STEP will operate the program with Saskatchewan Industry and Resources establishing a loan fund for export financing activities, and Western Economic Diversification Canada (WD) contributing to operating costs.

"This new micro-loan program responds to the needs of Saskatchewan exporters aiming to grow their business," Owen said. "The Government of Canada supports and encourages these entrepreneurs who drive Saskatchewan and Canada's export economies."

"Saskatchewan's export-driven economy is diverse and dynamic with exporting equal to almost 70 per cent of the province's GDP," Cline said. "The nextrade finance initiative will provide Saskatchewan exporters with the necessary flexibility that will enable them to maintain a competitive edge in today's global economy."

Nextrade finance will operate independently of STEP's core services. Saskatchewan exporters that have been in business for a minimum of three years may be eligible for pre-shipment financing allowing exporters that hold an export order to access the capital needed to fulfill the order. Capital needs of $20,000 – $150,000 will qualify for this program, and financing is available for 60 days. Each transaction will be tailored to meet the specific needs of the export contract.

Post-shipment financing will allow exporters to turn sales into cash immediately and provide cash for exporters to grow their business more quickly. Export receivables valued from $20,000 – $150,000 and for terms up to 90 days will qualify for this program. Approvals will be determined by a combination of factors dependant on the individual contract details.

"Nextrade finance fills an identified gap in the marketplace brought to our attention by exporters across the province that are active in global markets," STEP President John Treleaven said. "We are confident that through this financing program, Saskatchewan exporters will increase their success in global markets and we will see a measurable impact on the prosperity of the province."

Nextrade will begin accepting loan applications on November 15th, 2004.

In September 2003 the Governments of Canada and Saskatchewan signed the Canada-Saskatchewan Western Economic Partnership Agreement. Both parties committed $25 million each over the next four years to support economic development initiatives that will create a more robust Saskatchewan economy and generate stronger, sustainable communities.

Funding for this project was provided for in the March 2004 federal budget and in the March 2004 provincial budget.

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For More Information, Contact:

Joanne Mysak Western Economic Diversification Canada Saskatoon Phone: (306)975-5942	Bob Ellis Saskatchewan Industry and Resources Regina Phone: (306)787-1691
Glen Millard nextrade finance Regina Phone: (306)787-7936