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Trust Loans programme to increase entrepreneurial activity

Entrepreneurship plays a huge part in the growing economy of many countries across the world, and the island paradise known as Barbados is no different. The island while preparing to celebrate its 52nd year of Independence on November 30th, is also giving more financial opportunities to local start-ups, small businesses and entrepreneurs, through the recently launched ‘Trust Loans’.

Recently, Government launched a $10 million trust loan programme, under which starting on Monday, Barbadians can begin to apply for collateral loans to further their business visions.

“We recognize that people need a start; if you recognize, this Government has started a Trust Loan Fund for small businesses . . . . Most persons are finding it difficult to obtain loans from the commercial banks. So, we have set the policy framework so that small businesses can come and start $5,000 trust loans and that gives you a start,” said Minister of Small Business, Entrepreneurship, and Commerce Dwight Sutherland.

Under this new and progressive programme, entrepreneurs can access loans of up to $5,000 at a minimal interest rate of 1.5 to 2%. Clients will be able to also borrow this amount once they have successfully repaid their initial loan.

Acting Prime Minister George Payne Minister of Small Business,  as he explained how the ‘Trust Loans’ programme would proceed, said that Government was seeking to provide ‘comprehensive entrepreneurial framework for small business development’.

He also announced that there would be a number of support mechanisms which included an alternative and user friendly website, a financial literacy bureau to assist entrepreneurs in becoming more financially savvy and a mobile phone app that help entrepreneurs complete loan applications and make payments among other features.

The ‘Trust Loans’ programme is set to provide in total $10 million dollars per year for the next five years that it will take to  seed a Trust Loans Fund.

“The revolving nature of these loans encourages successful recipients to abide by the repayment requirements, which in turn will continually permit the fund to be replenished so other entrepreneurs can benefit and prudent borrowers can reapply for additional financing,” said Minister of Youth and Community Empowerment Adrian Forde, as he spoke during the launch of the Global Entrepreneurship Week (GEW) 2018.

“Increased entrepreneurial activity will go a long way in building more entrepreneurial citizens and excite our young people about getting involved in business, a borderless world where the technology opens new opportunities that were unavailable to previous generations,” he said.

Not only is it possible that the ‘Trust Loans’ will yield increased entrepreneurial activity, but the Minister also assured that there would be initiatives geared towards the encouragement of an entrepreneur in every Barbadian household, in an effort to maximize income earning potential, stimulate economic activity and increase the focus and spotlight of the Barbadian brand in both the Caribbean and International markets.

Two such initiatives are the Prime Minister’s Innovation Award worth $250,000 and the Youth Innovation Award worth $150,000 of prize money which are intended to spark new ideas, innovations and new business, leading to the generation of new wealth, jobs and bringing foreign exchange into the economy.

Hey Toronto, the minimum wage is going up

No matter what happens in 2018, at least Ontarians will have some solace in the fact the minimum wage will increase by a dollar.

Ontario Minister of Labour announced that as of Jan. 1, the minimum wage will rise to $14. This means an estimated 55 per cent of all retail workers in the province will be getting a raise. Employees will also be eligible for an extra 10 days of personal emergency leave and increased family medical leave for eight to 28 weeks. The government is also instituting a new domestic or sexual violence leave of up to 10 individual days.

“Our plan for Fair Workplaces and Better Jobs provides a minimum wage people can actually live on and modernizes our labour laws to address today’s world. Too many families struggle to get by on part-time or temporary work. Those working full-time can be living in poverty. This is unacceptable in Ontario. Our plan will help ensure everyone who works hard has the chance to reach their full potential and share in Ontario’s prosperity,” said Flynn in a statement.

This is the first step towards the province’s plan to increase the minimum wage to $15 by 2019.

TTC hikes fares by 10 cents, needs investment from city

Last night, the TTC board approved a 10-cent fare increase for tokens, reducing their shortfall for next year’s budget to about $61 million. As Toronto Transit Commission CEO, Andy Byford, emphasized during his presentation, the board had very few choices. A fare increase was an inevitable and unfortunate necessity.

Cash fares will remain the same, but the cost of a token or a PRESTO single ride will increase to $3. A monthly Metropass will go up to $146.25 for adults and $116.75 for post-secondary students. Cash and ticket prices for seniors and students will also increase by 10 cents.

The change will be effective as of January 2017, although the board did pass a second motion saying they will recommend freezing fares in 2018.

The TTC will now have to turn the budget over to the city budget committee, who will then decide whether to approve the budget with the 2017 shortfall. The fare increase will result in an extra $27 million for the transit agency. That, in combination with a number of efficiency cuts, has already lowered the shortfall from $230 million to $61 million. By approving the budget Monday, the TTC board is saying there is no other way to cut the budget. They have done everything they can without increasing fares by an even more substantial amount or without cutting services.

The TTC receives a very small subsidy compared to other North American cities — 90 cents per rider. Vancouver’s subsidy is $1.89 per rider and Calgary is $1.69. York Region, whose transit network is much smaller, has a subsidy of $4.56. Without more funding, there is absolutely nothing the TTC can do but increase fares.

As much as city council is against raising property taxes, it was clear that concerned transit users are fine with it. Most wanted all residents to contribute, whether it was through tolls or property tax, so that seniors and low-income families don’t have to walk across the city to get to work because they can’t afford public transportation. Raising property taxes was actually a suggestion given to the board by a Toronto resident.

Byford has done all he can do in terms of finding efficiencies, cutting the budget by another 2.6 per cent for the second year in a row. During a time where the TTC is working with the city to build more transit and improve service, this is not a time for cuts.

Now, it’s the city’s turn to take this budget and commit to investing in public transportation. Residents have said they are willing to contribute through taxes, and there are other forms of revenue such as tolls that can be used to help decrease the shortfall, so let’s run with it! It’s time to seriously invest in transportation, especially if Toronto has any hope of completing our integrated transit network.