Saskatchewan exporters seeking financial assistance to develop new markets and expand their business will benefit from a new micro-credit facility - nextrade finance - to be established by the Saskatchewan Trade and Export Partnership (STEP).

Today, the Honourable Ralph Goodale, Minister of Finance, of behalf of the Honourable Stephen Owen, Minister of Western Economic Diversification and Minister of State (Sport) and Eric Cline, Minister of Saskatchewan Industry and Resources (SIR) announced a $1.725 million contribution through the Canada-Saskatchewan Western Economic Partnership Agreement (WEPA) to provide pre- and post-shipment financing for Saskatchewan export companies to grow their export business.

Over the next three years, STEP will operate the program with Saskatchewan Industry and Resources establishing a loan fund for export financing activities. Western Economic Diversification Canada (WD) is contributing to operating costs.

This new micro-loan program responds to the needs of Saskatchewan exporters aiming to develop new markets or expand their business," said Minister Goodale. "The Government of Canada supports and encourages entrepreneurs, who are a driving force behind Saskatchewan and Canada's export economies."

Saskatchewan's export-driven economy is diverse and dynamic with exporting equal to almost 70 per cent of the province's GDP," said Minister Cline. "The nextrade finance initiative will provide Saskatchewan exporters with the necessary flexibility that will enable them to maintain a competitive edge in today's global economy."

Post-shipment financing will allow exporters to turn sales into cash immediately and provide cash for exporters to grow their business more quickly. Export receivables valued from $20,000 to $150,000 and for terms up to 90 days will qualify for this program. Approvals will be determined by a combination of factors dependant on the individual contract details.

Nextrade finance fills an identified gap in the marketplace brought to our attention by exporters across the province that are active in global markets," said STEP President John Treleaven. "We are confident that through this financing program, Saskatchewan exporters will increase their success in global markets and we will see a measurable impact on the prosperity of the province."

Nextrade will begin accepting loan applications on November 15, 2004.

In September 2003 the Governments of Canada and Saskatchewan signed the Canada-Saskatchewan Western Economic Partnership Agreement. Both parties committed $25 million each over the next four years to support economic development initiatives that will create a more robust Saskatchewan economy and generate stronger, sustainable communities.

Funding for this project was provided for in the March 2004 federal budget and in the March 2004 provincial budget.

For additional information, contact:

Joanne Mysak
Manager, Communications
Western Economic Diversification Canada
Saskatoon, SK
Tel: (306) 975-5942

Bob Ellis
Director, Public Affairs
Saskatchewan Industry and Resources
Regina, Saskatchewan
Phone: (306) 787-1691
Fax: (306) 787-8447

Glen Millard , Managing Director
nextrade finance
Regina, Saskatchewan
Phone: (306) 787-7936
Fax: (306) 787-6666