CAIC: An Alternative Source of Financing

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• CAIC An Alternative Source of Financing
• CCINC CSR Workshop
• Winnipeg, MB
• June 1, 2006

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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

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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

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Clearly Defined Investment Criteria

• Social Benefit
• Financial Soundness

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Measures of Social Benefit

• Alternative Economic Structure
• Personal Empowerment
• Community Development
• Barriers to Capital Formation
• Start up
• Potential
• Marginalization
• Dignity/Advocacy
• Environment

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Key Elements of Success

• A Good Track Record
• Community Support
• Strong Financial Skills
• Committed Key Players
• Manageable Debt
• Multiple Sources of Income
• Guarantees

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Key Elements of Success (cont.)

• Collateral
• Sufficient Capital
• Management Skills
• Economic Opportunity

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Social Enterprise Financing

• Community Loan Funds
• 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

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Social Enterprise Financing

• Community Loan Fund Lending Parameters
• Step-up loans to a maximum of 50,000
• 30 Loan loss reserve to ensure CAICs 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

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Fonds Communautaire dEmprunt de la Mauricie

• Micro support
• Established track record
• Evidence of committed operation funding

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www.caic.ca