2024 marks 32 years of providing hands on help in the form of technical assistance and advice.  A fairly unique role of South Shore Opportunities is providing practical and careful guidance to clients as they investigate the financial aspects of their new business idea. For 32 years there has been no charge for guiding people as they investigate new or expanding business ideas. 

This fiscal year also marks 32 years of providing business loans to start-up businesses as well as existing businesses.

South Shore Opportunities originally received $2,396,890 for community investment from various Federal Government sources (Employment Immigration, Human Resource Development Canada, Service Canada and ACOA) between startup 1992 and 1998.  The organization has committed $25.5 million in small business start-up and expansion in Lunenburg and Queens counties  to March 31, 2024.

The Board of Directors adopted a new Vision and a new Mission as part of 2020-2021 strategic planning process.

VISION:        
Lead by committed, engaged and diverse volunteers and staff, South Shore Opportunities is the go-to organization that stimulates and supports innovative and traditional businesses and entrepreneurs, through a range of programs, services and partnerships that will sustain and grow communities in Queens and Lunenburg Counties.

MISSION: 
To foster the creation, support, expansion, and modernization of existing and new businesses in Queens and Lunenburg Counties by providing financing, counseling, and technical services.

Also, during the 2020-2021 Strategic Planning session, the Board of Directors identified that the organization’s strengths include:

• Support and knowledge available to clients
• Ability to react to social issues as well as the financial
• An understanding of the local economy and business
• A commitment to the local community
• Providing accessible and timely resources and responses
   

The year April 1, 2023 to March 31, 2024, ended with an Operating Account deficit of ($2,990.58).  The Board used $134,000 interest earnings from Investment to supplement operations this year.

$250,720 was received in operating income from ACOA and for the first time, $50,000 was received from the Atlantic Association CBDC for operating. 

The corporation’s 2023-2024 operating budget forecasting

ACOA contract $241,113 with $41,000 other revenues plus the need to use $ 239,117 interest from investment earnings for a total of $521,290.   Budgeted expenses were $521,290 for a break-even operation.  
 

Actual revenues were just $9,134 less than budgeted, mainly due to the fact that there was less use of the Entrepreneurial Training Fund program than was budgeted.  The actual ACOA contract was $250,720, plus $50,000 from AACBDC.  As well, revenues included 35,144 deposit interest and other revenues of $42,291 which included reimbursements for training (CAS and ETF) as well as sub-lease revenue from ACOA and the province for Bridgewater office.  The contribution from the AACBDC was a first-time event. The AACBDC is using RRRF repayments to assist CBDC’s with operating expenses. Actual interest from investment earnings used was $24,000 more than budgeted. Sublease revenue was $11,000 more than budgeted simply due to the sharing agreement for rent and janitorial fees.

Some expense line items were slightly over and some slightly under ending the year with total actual expenses of $515,146,  $6,142 under budget.  Bridgewater rent increased significantly on February 1, 2024.  Shared cleaning for the Bridgewater office is a new budget line when South Shore Opportunities became the lead tenant for the Bridgewater Logan Rd location.  The janitorial expenses for Bridgewater are now covering not just SSO area and that cost is shared with ACOA and INVEST NS. The re-coup is included in Sub-lease revenue which, as previously noted, was greater than budgeted for the same reason.

Training expenses were approx. $2,000 less than budgeted despite strong use of Consulting Advisory Services (CAS) program which was $5,300 greater than budgeted.  100% of CAS expenses are reimbursed by the NS Association of CBDC.  The Entrepreneurial Training Program was $7,000 under budget as less businesses than anticipated sought individual training.   There are many free group training options available online now with Skills Online NS, Workplace Education program as well as business workshops offered by the NS Association CBDC.

The corporation did 2 other extra contracts during 2023-2024:

• Entrepreneurial Training Fund; partnered with Atlantic Association CBDC/ACOA
• Consulting Advisory Services Program; partnered with NS association CBDC

The Entrepreneurial Training Program was used to assist 3 individual business owner with training; one business received marketing training and two received training in setting up and maintaining their own website.

South Shore Opportunities approved 3 Consulting Advisory Services contracts in the amount $13,600.  The Consulting Advisory Services (CAS) program helped businesses with business development, human resource management (2).
 

BUSINESS OPERATIONS

South Shore Opportunities had 163 new business client interviews up from 120 in 2022-20223, 42 (31 in 2022-2023) from Queens Co and 121 (89 in 2022-2023) from Lunenburg Co.   TEA noted 205 (194 in 2022-2023) clients provided business counselling, 380 (455 in 2022-2023) business counselling sessions, 291 (267 in 2022-2023) other monitoring engagements, 23 (24 in 2022-2023) site visits. 

The year end March 31, 2024 saw 17 formal requests for investment from the General Investment Fund, 3 for Queens Co. and 14 for Lunenburg Co.  This is 8 less applications than 2022-2023.

10% of new inquiries this fiscal year applied for financing with this organization (17 applications/163 new inquiries). In 2022-2023 20% of new inquiries applied for financing.

Counselling and technical assistance are a strong part of services provided by the organization. 163  new inquiries, 17 requests for investment from South Shore Opportunities community investment fund indicates that in this fiscal year, 10% of new inquiries applied for financing.  This is down 10% from 202-2023. This indicates that start-ups, expansions and business difficulties were supported through counselling, technical assistance (particularly cashflow planning) and guiding the client to be prepared to request  financing from more traditional sources rather than financing through this organization.

The request for investment totalled $1,459,500 which is down $618,930 from 2022-2023, applications.  Of note, 1997-98 had the highest loan dollar requests in the organization’s history with 71 applications for $2,574,640.04.

During this fiscal year South Shore Opportunities committed 100% of the requests, committing $1,459,500 net of refinancing, 16 loans (11 of which were used or remain committed), a decrease of (18-11 = 7) 7 loans net of uncommitments from 2022-2023.

2023-2024 2022-2023 was the highest loan dollars approved at $2,078,430 however $831,000 was uncommitted within the year for a net commitment of  $1,247,430 so 2016-2017 remains the most loan dollars approved, $1,679,835, in the organization’s 31 year history. 

The current year investment was partially used to create and maintain 41 FTE jobs.

2022-2023 was the highest loan dollars approved at $2,078,430 however $831,000 was uncommitted within the year for a net commitment of  $1,247,430 so 2016-2017 remains the most loan dollars approved, $1,679,835, in the organization’s 31 year history. 

The current year investment was partially used to create and maintain 37  FTE jobs (41 in 2022-2023).

South Shore Opportunities disbursed $1,171,582 regular investment funds in 2023-2024, $79,082 more than the amount disbursed in 2022-2023. 

Write-Offs and Allowance for Doubtful Accounts

Write-offs to the general Investment Fund during this fiscal year totalled $0.  Historical total write-offs with subsequent recoveries means the rate of write-offs net of recoveries, $2,760,878.47/ $25,569,778.95 net commitment to March 31, 2024 is 10.8 % of commitments, since inception, down from 11.1% in 2022-2023.

Following analysis of the loan portfolio and individual loans, the organization chose to make no increases to the Allowance for Doubtful Accounts, leaving the balance at year end at $569,779.13 which is a conservative 14.7 % of the outstanding regular investment $3,881,804.74 loan portfolio, down from 16.9% in 2022-2023

LOAN PORTFOLIO

The Investment Fund completed the year with $3,881,804.74 Million Loans Receivable, covering 61 loans, with $0 write-offs. This is the highest loan receivable balance in the organization history; the next highest year was 2012-2013 $3,322,004.60 which, of note, encompassed 78 loans. This is an indication of the much higher average loan.  an increase in the portfolio of $509,165 and 9 loans from 2022-2023.   As at March 31, 2024 there was $288,865 available for investment.

RRRF loans outstanding at March 31, 2024 were 12 loans totalling $277,293.35, a $753,871.33 decrease from March 2023 balance of  $1,031,164.68.  The dramatic decrease is a result of the end of the forgiveness (ability to repay less than borrowed) period January 18, 2024.

GOVERNANCE

The Board of Directors continues to both advertise publicly and utilize networks to continually seek new members of the Board.  The Board remains committed to seeking a broad range of business expertise to maintain the important access to capital for small business in the community of Queens and Lunenburg counties.

The organization is currently seeking potential board members and invites interest.