A local program aiming to accelerate growth for area businesses received the promise of financial support from the Town of Collingwood last month.
Council approved $150,000 in funding for the accelerator program for 2021, and staff recommended asking other municipalities and government levels for funding for the program to reduce the town’s investment.
Council also agreed to provide another $50,000 as a “backstop” provided a request for the county to support the accelerator program with $50,000 is not successful.
In the meantime, town staff and those involved with the accelerator start-up are also reaching out to neighbouring municipalities to see if they will also contribute to the first-year funding.
In total, council committed $200,000, sourced from the fund containing the proceeds from the sale of COLLUS and the regional airport, with the promise to replace the money should a surplus be realized in the 2021 budget.
The idea for a local accelerator program has been bouncing around since at least 2019 when both public and private enterprise got together to start planning and raising support for an accelerator.
Gillian Fairley, the general manager of the Collingwood-based Centre for Business and Economic Development approached council in June, 2019, to explain the potential benefits of a business accelerator.
A business accelerator program is meant to help existing small businesses grow by providing training, pathways to funding, and programs designed to increase the scale of a business or product.
The formal groundwork for the accelerator program idea began last year with the town partnering with the Centre for Business and Economic Development to have a consultant investigate the potential for establishing an accelerator in Collingwood.
A steering committee formed in March with eight members chosen for their business experience and knowledge. The committee wrote a business plan proposing a three-year phased approach with virtual services launched in the first year intended to take six, “high-potential” tech and innovation sector companies through an accelerator program. By the second year, the accelerator program could accept 12 companies, and by year three, there would be room for 15.
The accelerator program would take the businesses through a three-to-six-month program designed to help the owners grow their companies and "scale-up" at an accelerated rate.
The funding model identified an operating cost of $600,000 for the first year, $750,000 in the second year, and $898,000 in the third year. The committee proposed a mixed-funding model with contribution requests to Collingwood, The Blue Mountains, Clearview, and Wasaga Beach, as well as private sources and government grants.
The Centre for Business already had a $200,000 grant available for the first phase of the project. The business plan noted the $600,000 budget for the first year would be made up of Collingwood’s $200,000 investment, $300,000 in government grants, and $100,000 in corporate donations and sponsorships.
According to a staff report presented to council on Jan. 18, the Town of Collingwood would be leaders in creating the independent and not-for-profit business accelerator in partnership with the Business Development Centre.
In order to mitigate the town’s risk associated with the investment, staff will develop a formal memo between the town and the accelerator, which will include year-end reports, a two year limit for the accelerator to “prove initial results,” and a council-appointed member for the accelerator’s board of directors.
There were five votes of council in favour of the town’s contribution to the accelerator program including Mayor Brian Saunderson, Deputy Mayor Keith Hull, Councillor Deb Doherty, Councillor Kathy Jeffery, and Councillor Yvonne Hamlin.
Councillors Steve Berman, Mariane McLeod, and Bob Madigan voted against the motion.
Councillor Tina Comi was not at the council meeting.
Councillor Berman said he didn’t support using asset sale proceeds for the accelerator program, noting he’d like to wait for the staff report summarizing public input on how to spend the proceeds.
Councillor Madigan said his main objection was also allocating the asset funds to the accelerator.
Councillor McLeod proposed the matter be pushed to the 2022 budget process, but did not receive enough support from council for her motion to pass.
