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