HALIFAX - The Black Business Initiative (BBI) is proud to announce the creation of a community economic development investment fund (CEDIF) for Nova Scotia - the Black Business Community Investment Fund Ltd. (BBCIFL).
This Fund has been created to direct investments back into the local community - investments by Nova Scotians for Nova Scotians.
BBI exists to help build and strengthen Black presence within the Nova Scotia business community. The BBCIFL is designed to put money back in our own community by increasing the level of economic activity within the Black-owned business community in this province, commented Rustum Southwell, Executive Director BBI.
The Fund will raise and manage an investment offering to be invested within the province. The capital raised will be used to make equity investments in Nova Scotia Black-owned businesses companies with at least 30% Black ownership.
Investing in BBCIFL provides a number of benefits. With tax planning well underway, investors can take advantage of the 30% tax credit against provincial taxes payable associated with a CEDIF. The fund's shares are eligible for self-directed RRSPs, as well as a 20% provincial guarantee for four years from the time of investment.
BBCIFL has been approved by the Nova Scotia Department of Finance for the 30% tax credit.
"Attracting equity investors into small business is difficult for most entrepreneurs," said Economic Development Minister Cecil Clarke. " I congratulate the Black Business Initiative for providing a source of venture capital for the Black business community through the Community Economic Development Investment Fund. I encourage other community interest groups in the province to follow your lead."
The Fund is sponsored by the Black Business Initiative of Halifax and is currently managed by an interim volunteer Board of Directors. Chair of the interim Board is Garnet Wright, Vice Chair, BBI. The Treasurer is Dr. Rudolph French former Professor of Economics, and Secretary is Bruce Johnson, Pharmacist.
Fund Directors and Promoters are actively seeking investors from now until March 3, the deadline for the 2002 RRSP contributions. Aside from cash purchases, it is possible to move existing RRSP funds into this investment and qualify for the 30% provincial tax credit on the transfer.
Investing in this fund is an important means of supporting the local economy by keeping investment dollars in Nova Scotia, and working for Nova Scotians, adds Mr. Southwell.
The Black Business Initiative is a province-wide business development initiative created to develop businesses and job opportunities among Black Nova Scotians.