Getting started - It takes a minimum of two meetings to approve a loan application. Meetings are held once a month, excluding July, August & December. Loans are reviewed on a first-come, first-served basis. However, it is important to note that a maximum of three applicants are considered at each meeting.
Determining Interest Rates - CAIC will only consider applications where other sources of financing are not available, or where present terms are extremely onerous. The cooperative does not make interest free loans. Interest rates are set on a case by case basis and will take into consideration: the prime lending rate (at conventional financial institutions), the perceived level of risk, similar loans in CAIC's portfolio and the rate requested by borrower.
Fees & Legal Costs - Successful applicants will be responsible for all legal fees which typically run between $500 - $1500. A 1% processing fee will be charged to projects applying within the Social & Affordable Housing area of focus. A legal retainer ($500 - $750) is required upon acceptance of CAIC's Letter of Agreement.
CAIC invests in groups working for positive social change and community economic development in Canada that lack access to traditional financing. We are particularly interested in projects that promote alternative economic structures and acts as a catalyst to structural change. When making an investment, CAIC takes into consideration both the social benefit of a project and its business soundness. A project will not be considered unless it meets our criteria for both attributes. CAIC focuses its lending in the following three areas:
Social Enterprise Financing
CAIC provides loans & equity investments to groups, organizations & cooperatives assisting in the economic development of disadvantaged people or communities and whose objectives are considered to be of social benefit by CAIC's board of Directors. The organization may be a corporation or a co-operative. The investment may be debt or equity, secured or unsecured.
CAIC is supportive of community loan funds and is interested in partnering with organizations that provide the necessary business skills and technical support to ensure successful social enterprises.
Mortgages for Community-Based Projects
CAIC provides mortgages of up to 75% of the appraised value of the property to non-profit & community-based organizations that require a 'home' for their services. (e.g. women's shelter, food bank, skills development).
Social & Affordable Housing Initiatives
CAIC is mandated to make loans available to groups working to provide social and affordable housing. CAIC defines socially beneficial housing as:
The Elements of Success
Please check out the Elements of Success for a full list of the attributes that CAIC feels are essential for success. Demonstrating that your group has all these characteristics will greatly enhance your application's likelihood of success.
CSI Regent Park
585 Dundas St East, 3rd Floor
Toronto, Ontario M5A 2B7
The approval of all loan application requests is subject to the sole and absolute discretion of the Board of Directors of the Canadian Alternative Investment Co-operative (CAIC).