BROCKVILLE – The government is cutting red tape for credit unions, helping open the door for them to assist more entrepreneurs in starting and growing their businesses to create jobs.
Leeds-Grenville-Thousand Islands and Rideau Lakes MPP Steve Clark highlighted new regulations which, if passed, would allow credit unions in Ontario to participate in group loans led by banks and federally regulated credit unions during a visit to Brockville’s Kawartha Credit Union today.
“Growing our economy in Ontario means creating more opportunities for entrepreneurs to launch a new business venture or expand an existing operation,” said Clark during a tour with Kathryn Ruttimann, District Manager for Kingston Area and Brockville. “This will help credit unions better manage risk and compete, while giving their small business customers increased access to financing. Small businesses are the backbone of our economy and these changes are part of our government’s commitment to make Ontario a place where anyone can start a business.”
Group loans, or loan syndication, allow each member of a group of lenders to fund a varying portion of a loan to a single borrower. The proposed regulation change would occur under the Credit Unions and Caisses Populaires Act, 1994.
Clark noted the change, contained within the government’s Bill 66, Restoring Ontario’s Competitiveness Act, is supported by the Deposit Insurance Corporation of Ontario.
“Credit unions welcome this announcement,” said Martha Durdin, President and CEO of the Canadian Credit Union Association. “By taking a sensible approach to bank-led loan syndications and red tape reduction, the Ontario Government is helping the province’s 79 credit unions grow and create opportunities for their 1.5 million members and nearly 150,000 small business owners.”
Bill 66 contains several measures to cut job-killing red tape to support small businesses. These include allowing private employers to reduce pension risk by merging single-employer pension plans with jointly sponsored plans and ensuring industrial property tax assessments by the Municipal Property Assessment Corporation are based on current permitted uses, not speculative ones.