By Adam Frisk Local Journalism Initiative Reporter
Businesses in Haliburton County are taking out larger loans, according to the latest numbers from the Haliburton County Development Corporation (HCDC).
At HCDC’s annual general meeting on Oct. 1, board members and staff reported a busy year of lending, with loans at the corporation’s maximum now making up a much larger share of its portfolio.
Loan manager Sara Joanu reported that HCDC handled 69 loan applications during the 2025–26 fiscal year ending March 31. The board approved 48 applications, declined three, and recorded 18 withdrawals, for a 70 per cent approval rate.
In total, HCDC approved $8.2 million and disbursed $6 million to 37 area businesses, bringing its active loan portfolio to 135 loans. Combined with $4.6 million in leveraged funds, HCDC estimated the lending generated $10 million in economic impact and helped maintain or create 241 jobs.
According to the year-end report, more businesses are borrowing the maximum amount available. In 2023, loans at HCDC’s maximum of $300,000 made up 13.3 per cent of the portfolio. Now, they account for more than 30 per cent.
“It tells us that businesses are requiring more money, higher loans, in order to cover the business costs,” Joanu said. “And it also tells us that our max lending limit of $300,000 isn’t going as far as it once was.”
HCDC has also partnered with organizations such as the Community Futures Network of Canada on joint lending arrangements to fund larger projects.
Of the approved loans, 48 per cent went toward maintaining existing business operations, 33 per cent financed expansions, and 19 per cent supported new startups. Service businesses made up the largest share of the portfolio, followed by construction, retail and tourism.
Accountant Tim Degeer of Dawson Gray presented the annual audit. HCDC’s general operating fund brought in $632,000 against $688,000 in expenses, resulting in a $55,000 operating deficit. Degeer noted that the deficit includes $41,000 in non-cash depreciation from leasehold improvements and equipment at HCDC’s main location.
“In moving to the new location, we had to expend funds for equipment for leaseholds up front, and then we depreciate those over time,” he said. “So it’s not shocking that we’ll have successive years of loss just to reflect that and be in alignment with accounting standards, which may be a little counterintuitive sometimes.”
HCDC reported $7.1 million in cash in its investment fund, along with an active loan portfolio valued at nearly $18 million after allowances for doubtful accounts. Total assets stood at $25.1 million. The corporation earned $1.5 million in net investment income during the fiscal year, according to the report.
Operations at The Link community hub generated $49,000 against $79,000 in expenses, creating a $30,000 deficit driven by depreciation. Degeer confirmed direct rental operations are functioning at breakeven.
“Not every loan that comes through the door is an easy decision. There’s a lot of risks that need to be considered, a lot of questions that are asked and sometimes difficult decisions that need to be made,” Joanu said. “When you look at these numbers, it really just shows the commitment that our board has in supporting local businesses.”
