Montreal Community Loan Fund
Association du Communautaire d'Emprunt de Montréal
Montreal, Quebec
The Montreal Community Loan Fund/Association du Communautaire d'Emprunt de Montréal first approached CAIC in January 1992 for an investment in their community loan fund. The board of directors of CAIC recognized that MCLA/ACEM shared similar goals with CAIC, the foremost being to provide loans to those who don't have access to traditional sources of credit. They also recognized that MCLA/ACEM could provide much- needed technical support to ensure that a project is credit ready. Their loan fund targeted truly marginalized individuals and provided credit at a grassroots level. CAIC is not mandated to provide loans to individuals. You must be a group, organization or cooperative. Also, CAIC doesn't have the staff or resources to provide much needed technical support to those wishing to initiate new ventures. When a group comes to CAIC it must be credit ready. Supporting community loan funds allows CAIC to help the truly marginalized, albeit indirectly. CAIC agreed to provide a loan to support this community loan fund and ten years later MCLA/ACEM is still a part of CAIC's loan portfolio.
Since 1990, MCLA/ACEM has extended 123 loans to individuals struggling to come out of poverty (in particular women, immigrants, refugees and visible minorities) and community based non-profit organizations. However, it is not just about providing access to credit. MCLA/ACEM works with marginalized populations to build capacity and empower individuals to act towards positive change in their lives. A support system improves the probability of success and promotes a more socially responsible approach to economic development. MCLA/ACEM works with applicants who are eligible for a loan but whose project is not ready to receive a loan. The most important aspects of their work in this phase are: references to other resources, follow-up and developing a solid lender/borrower relationship. MCLA/ACEM concentrates on finding the best resource to support an applicant during the pre-start up and start up phases. They invest a great deal of time on building a strong relationship based on mutual trust with their applicants. They consider this relationship a 'guarantee' for the loan, along with their ability to respond to an applicants needs with the appropriate support. The work is not done once a loan is made to an applicant. MCLA/ACEM spends a great deal of time following-up to ensure that their borrowers remain on track.
MCLA/ACEM's goal for 2002 was to concentrate their efforts on supporting women, cultural communities and visible minorities. A review of their loan portfolio indicates that they are well on the way to reaching their goal.
Website: www.acemcreditcommunautaire.qc.ca
Return to Our Borrowers Page
Go to Loan Portfolio Page
Go to Project Locations Map
