A 'Microfinancing Shift' in Canadian Small Business Lending

As banks cut back on lending directly to small businesses, Lana Larder expands Canada's role and lobbies for microfinancing interest from investors and government for capital

Lana Larder knows opportunity when she sees it. Shortly after she became president of Halifax Finance, a Halifax, Nova Scotia, Canadian based company that was focused on finding capital for start-up and small businesses for growth, in August 2008, she sought new avenues of capital to expand Halifax Finance's services to small to medium sized businesses in Atlantic Canada.

Among Larder's top prospects were Angel and Venture Capital investors. With support from the Federal Government, Larder and five companies from Atlantic Canada visited New York city in April 2009 during the emerging worldwide credit crisis and received investment readiness training and access to Angel and Venture Capital investors.

November of 2009, Larder partnered with Silver Lining Ltd. and BusinessOwnersGetIt.com to implement a Canadian wide focus group to understand the challenges that small business owners faced to access capital. Larder already understood the challenges disadvantaged groups faced and had researched, studied and prepared a microfinancing plan for Halifax, Nova Scotia over the past four years.

As part of the focus group, Larder was able to participate in a Canadian Wide Credit Challenge and provide her solution. "Winning this Canadian Wide award was a pivotal moment for me as I am passionate about microfinancing in Halifax, Nova Scotia and internationally. I want to make this a reality and have this as an alternative option for entrepreneurs, particularly women, because they have a harder time to access capital," says Lana Larder. So in response to the question - What is your solution for banks or government to fulfill the need for small business owners - Larder answered microfinancing and won!

"The recognition for this solution should help as I am now trying to get investors and government to invest in microfinancing in Halifax, Nova Scotia," she said. One week before Larder won the award, she had presented her plan to a wealthy potential investor in Nova Scotia and had two more meetings lined up with more potential investors and the government.

Microfinancing typically lend to clients that banks consider too risky. During this recession, microfinancing loans in the United States have held up well, in part because they come with lots of hand-holding for borrowers. Microfinancing can play a growing role in financing small businesses in the recovery in Halifax, Nova Scotia. Larder's solution - microfinancing can fulfill the growing gap in financing small businesses in the recovery.

Please contact:

Lana Larder

llarder@eastlink.ca