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BDICcelebratesdecadeofbuildingNWTbusinesses6TuesdayApril72015INDUSTRYBUSINESSCorp.BDICakeyplayerinbuildingupbusinesseswithintheterritory.OverthelastdecadeBDIChasprovidedover700millioninloanstomorethan400NWTcompaniesallthewhilecreat-ingandmaintainingover630subsidiaryandinvestmentpositions.FormedaftertheamalgamationoftheNWTBusinessCreditCorp.andNWTBusinessDevelopmentin2005BDIChasbeenabletosimultaneouslybuildupsur-plusesanddiminishbaggageleftoverfromitspredecessors.Wehavebroughtloanlossprovisionsdownbyover25percenttoalittlelessthan15percentsaidPawanChughCEOforthecompanysinceitsinception.Wearehopingthattheduediligencecontinuesandwekeepservinginthesamewayandatsomepointinthenearfuturewemightdosingledigits.BDIChasmanagedtoachievethesecondlowestloanlossprovisionsinthecountryoutofanyprovincialloancompanybehindonlyInvestmentQuebec.Withourloancontributionprogramwehadlessthanfiveapplicantsin2005-2006whenwetookoverBDICandwehadcloseto50applicantsinthelastyearChughsaid.Thispastyearwevegivencloseto300000incontributionsupfromabout25000in2005-2006.TheorganizationhasshownitsgritovertheyearshelpingnumerouscompaniesaroundtheNWTtostayafloatduringtougheconomictimes.Wegavebreakstoabout75companiesafterthe2008recessionandwegavethemabout85000inreducedinteresthesaid.SinceBDICstartedChughsaidithasbuiltupan8-millionsurplusinitsloanportfoliowiththegoalofbeingabletoprovideloanswithoutassistancefromtheGNWTwithinthenextdecadeorso.Youcanliterallycallitaturned-aroundoperationChughsaid.TodayweowetheGNWT8millionlessthanwhatourclientsoweus.IfthistrendcontinuesinthefuturewellhaveourownloanfundfromwhichwecouldgiveloanswithoutborrowingmoneyfromtheGNWT.Itshardtoputatimeframetoitbe-causeofthechangesintheeconomy...InCanadaitdoesntlookthatgoodinthenextcoupleofyearstherewillbesomechallenges.BDICoperatesbyloaningmoneyfromtheGNWTtocommunitybusinesses.Italsooperatesbysupportingsubsidiarycompaniesandventureinvestments.WetookitonourselvestochallengethateveryprovinceandterritoryinCan-adashouldhaveatleastaminimumoneoutlet-onegalleryorgiftshop-whichwouldbesellingNWTsubsidiaryprod-uctsChughsaid.Weachievedthattodaywehave56gal-leriesacrossCanadaandsomeinAlaskaatnoextracosttousorthegovernment.ItsfreepromotionfortheNWT.WorkingtowardsimprovementsIn2013anexternalauditonBDICre-vealedittobeoverfundedandunder-uti-lized.HowevercomplaintsbytheGNWTandthecompanythatthereportwasnotdoneproperly-comparingBDICtoapri-vateloancompanyorbankratherthanagovernment-fundedoperation-ledtoasecondauditthatwhilestillcriticalpaintedabrighterpicture.OneofthetopcriticismsofBDICisthatitdoesntgofarenoughtoreachintowhatitcallsLevelIIcommunitiesthosesmallPhotoscourtesyofBDICBusinessDevelopmentandInvestmentCorp.CEOPawanChughaddressesthecrowdatthecompanys10thanniversarycelebrationsonApr.1.IndustryTourismandInvestmentMinisterDavidRamsayattendstheBDIC10thanniversarycelebrations.RamsayistheministerinchargeofBDIC.ByDALICARMICHAELPoliticiansbusinessownersandthosewhosupporteconomicdevelopmentgatheredinYellowknifelastweektocel-ebratethe10thanniversaryoftheNWTBusinessandDevelopmentandInvestmenttownsandhamletslocatedoutsideofthecitycentres.Onceclientsareabletoaccesssomeofthecreditfacilitiesprogrammingsomecomplaintheyfacelongwaittimesbe-tweenlingapplicationsandreceivingloans.Bothreviewspointedtoalackofself-re-portingmechanismstodeterminethesuccessandoutcomesoftheloanprograms.AdditionallywhilesomeofitsCreditFa-cilitiesloanprogrammingwasdeterminedtobeverypopularandhigh-functioningsomecomponentslikethewintersummerre-sup-plynancingandtheseasonalproductionnancingspecialtytermloanswereviewedaslow-performingandadrainonfunds.Thereportsalsonotedthatmarketingeffortstomakenewbusinessesawareoftheoptionsavailabletothemwerelacking.Chughacknowledgedtheshortfallsnot-ingthatcommunityoutreachmarketingandholisticreportingmechanismimprovementinitiativesarealreadyintheworks.Wehadimplementedquiteafewchangesandalotofthingsonourownbutbecausetheywerenotcompletedatthetimeofthereviewtheycameasarecommendationbutalotofthemarealreadyinplacebynowhesaid.Therearede-nitelysomethatcanstilldenitelybelookedat.Theresalwaysroomforimprovementnomatterwhatandthatsourgoaltokeepimproving.Forinstancecreatingbusinessopportuni-tiesintheLevelIIcommunitiesislistedasatoppriorityforBDIC.Onewaytheorganiza-tionisfacilitatingtheirdevelopmentisthroughpilotprojectstestinglong-distancebusinesseducationthroughteleconferencingandpro-vidingbusinessmentors.BDICisalsolookingatcommunitybankinginitiativestogetfundsowingthroughthosecommunities.IdenitelyhavesomegoalstoachievethattheboardhassetupformeChughsaidlook-ingforwardtotheBDICsnext10years.IfthesethingscanbeachievedIwillbehappytoretire.Youcanliterallycallitaturned-aroundoperation.TodayweowetheGNWT8millionlessthanwhatourclientsoweus.PawanChughBDIC