Alternative Financing For Community Based Projects
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Transcript of Alternative Financing For Community Based Projects
CAIC: An Alternative Source of Financing CAIC: An Alternative Source of Financing CCINC – CSR WorkshopCCINC – CSR Workshop
Winnipeg, MBWinnipeg, MBJune 1, 2006June 1, 2006
What is CAIC? Canadian Alternative Investment Cooperative Founded over 20 years ago by religious
communities Members are registered Canadian charities
within the faith community Established to provide financing for groups
working in the charitable, non-profit and social justice sectors
What is CAIC? (cont.) Assets greater than $7 million Investment Portfolio of $4 million Provides mortgages, construction
financing, equity investments and loans Alternative source to conventional
lenders Support innovative community economic
models for poverty reduction
Clearly Defined Investment Criteria Social Benefit Financial
Soundness
Measures of Social Benefit Alternative Economic
Structure Personal Empowerment Community Development Barriers to Capital Formation Start up Potential Marginalization Dignity/Advocacy Environment
Key Elements of Success A Good Track
Record Community Support Strong Financial
Skills Committed Key
Players Manageable Debt Multiple Sources of
Income Guarantees
Key Elements of Success (cont.)
Collateral Sufficient Capital Management
Skills Economic
Opportunity
Social Enterprise Financing Community Loan Community Loan
FundsFunds CAIC is interested in
partnering with organizations that provide the necessary business skills & technical support to ensure successful social enterprises
Currently Invested in 5 funds totaling $150k
Three of the these funds are located in Quebec
Social Enterprise Financing
Community Loan Fund Lending Community Loan Fund Lending ParametersParameters
Step-up loans to a maximum of $50,000 30% Loan loss reserve to ensure CAIC’s funds
are protected in the event of default Broad-based financial support for operations No application fee Interest rates – 2% to 3% Legal costs borne by borrower
Fonds Communautaire d’Emprunt de la Mauricie
Micro support Established track record Evidence of committed operation funding
www.caic.ca