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) must accompany application submissions. Should CAIC not proceed with a Letter of Agreement, the legal retainer would be refunded (less any costs).
Areas of Focus
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.
Click here for the Social Enterprise Financing Borrower Guide.
Click here for the Social Enterprise Financing Application Form (PDF).
Click here for the Social Enterprise Financing Application Form (MS Word).
Mortgages for Community-Based Projects
CAIC provides mortgages of up to 75% of the appraised value of the property to non-profit and community-based organizations that require a 'home' for their services. (e.g. women's shelter, food bank, skills development).
Click here for the Mortgages for Community-Based Projects Borrowers Guide.
Click here for the Mortgages for Community-Based Projects Application Form (PDF).
Click here for the Mortgages for Community-Based Projects Application Form (MS Word).
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:
Any low cost rental housing
Housing that will remain perpetually affordable
Housing that is appropriate to those being housed
Resident and community controlled housing
Click here for the Social & Affordable Housing Borrower Guide.
Click here for the Social & Affordable Housing Application Form (PDF).
Click here for the Social & Affordable Housing Application Form (MS Word).
Potential Guarantor Form
Click here Potential Guarantor Form.
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