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Sources of Micro-credit Financing
Last Verified:
2006-05-30
"Micro-credit" can be defined as small loans made to individuals to undertake self-employment or to start very small businesses. This type of financing may be provided through a number of different sources: independent non-profit organizations, community economic development programs, commercial financial institutions, etc.
Usually, a micro-credit lender serves a particular geographic area or community, or a particular group. The loans are under $25,000 and for entrepreneurs who have not been able to secure financing through traditional lenders. The purpose of these loans is to finance very small businesses either to finance working capital or to buy assets for your organization. These loans can come with technical support such as business training, mentoring, peer exchanges and/or networking opportunities in conjunction with their loans. Although there is no standard definition of micro-credit, in practice micro credit loans are quite small, usually amounting to a few thousand dollars.
The list of micro-credit sources presented in this document is not exhaustive. An organization's inclusion in this list does not constitute an endorsement. You should investigate any lender carefully before submitting an application for financing.
For further information:
visit the Web site:
Is Micro-Credit an Option for You?
http://strategis.ic.gc.ca/epic/internet/insof-sdf.nsf/en/so03063e.html
Summary
The ACCESS Riverdale Community Loan Fund
Through a "step-lending" approach, the ACCESS Riverdale Community Loan Fund provides a series of loans that increase in size as your business grows in the community of Riverdale, Toronto (Riverdale's boundaries run east from the Don River to Coxwell Avenue and north from Lake Ontario to Mortimer Avenue). This program is run in partnership with the Metro Credit Union. First loans are up to $5,000.
For further information:
please call (416) 462-0496
visit the Web site:
The ACCESS Riverdale Community Loan Fund
http://www.accessriverdale.com/
Canadian Youth Business Foundation (CYBF)
This organization provides loans of up to $15 000 and mentoring to young entrepreneurs (aged 18 to 34) who are eligible to work in Canada, have written a comprehensive business plan and are not able to raise the necessary financing from other sources. In Ontario, the Foundation currently offers loans in the Greater Toronto Area, Niagara region, Peterborough, Kitchener-Waterloo, London, Ottawa, Thunder Bay, North Bay, Sudbury, Hamilton, Timmins and Kapuskasing.
For further information:
please call (416) 408-2923 or 1-800-464-2923
visit the Web site:
Canadian Youth Business Foundation (CYBF)
http://www.cybf.ca/
Community Futures Development Corporations
The Community Futures program in Ontario is a community economic development program which provides financial support to Community Futures Development Corporations (CFDCs) in selected communities in rural and Northern Ontario. The program is intended to strengthen and diversify the local economies. The CFDCs provide advice, information and referral service to local businesses and entrepreneurs. They also provide access to capital for small businesses.
For further information:
please call (519) 633-2326 or 1-888-633-2326
visit the Web site:
Community Futures Development Corporations
http://www.oacfdc.com/frame3.asp?lang=english
see these documents:
Community Futures Development Corporations in Ontario - Postal Code K
Community Futures Development Corporations in Ontario - Postal Code L
Community Futures Development Corporations in Ontario - Postal Code N
Community Futures Development Corporations in Ontario - Postal Code P
GEODE: Stepping Stone Loan Program
Is designed to provide community members, residing within the City of Greater Sudbury, with an alternative lending program that will enable them to start up or expand a micro-enterprise or home-based business. The program is based on a peer lending model, where individuals with their own business idea or business form a peer lending circle. The loans range from $500 to $3000 and are granted, not based on collateral or credit rating, but rather on the individual's character, commitment, and capacity to pay back the loan. The participant receives the skills and knowledge needed to run a successful business.
For further information:
please call (705) 670-8920
visit the Web site:
GEODE: Stepping Stone Loan Program
http://www.geodesudbury.org/english/home-e.html
Opportunities Kingston
Loans are offered to start-up small businesses in the Greater Kingston Area. Loan criteria requires participation in Opportunities Kingston's business counselling program and submission of a realistic plan for business development. Loans start at $1,000, with a repayment term of up to 12 months. With successful repayment, credit limits can increase to $5,000, repayable within a maximum of 3 years. Business mentoring, skill development, technical assistance, resources, and other support services are provided in conjunction with financing
For further information:
please call (613) 544-9175
visit the Web site:
Opportunities Kingston
http://www.opportunitieskingston.org/
Ottawa Community Loan Fund
OCLF provides term loans to a maximum $15,000 to individuals and groups with worthwhile business concepts, practical work experience and/or training and a solid business plan. The loan can be used to either start or expand a business. Loan repayment terms range from 12 to 48 months. The OCLF is also a partner with the Canadian Youth Business Foundation and offers start-up loans to a maximum of $15,000 for young entrepreneurs.
For further information:
please call (613) 594-3535
visit the Web site:
Ottawa Community Loan Fund
http://www.oclf.org/en/index.php
PARO: A Northwestern Ontario Women's Community Loan Fund
This fund provides financing to women entrepreneurs in the Thunder Bay, Greenstone, Patricia and Superior North regions. Although all industry sectors may be eligible for PARO's financing, you must be part of a peer circle in order to apply for a loan. Initial loans are in the $500 - $1,000 range.
For further information:
please call (807) 625-0328
visit the Web site:
PARO: A Northwestern Ontario Women's Community Loan Fund
http://www.paro.ca/
Two Rivers Community Development Centre (TRCDC)
The Two Rivers Community Development Centre is an Aboriginal controlled company with the mandate of "providing Aboriginal Businesses with Access to Capital. While the Centre provides business loans, they do not actively compete with the banking sector. Many of Two Rivers' customers borrow from both Two Rivers Community Development Centre and a Bank.
For further information:
please call (519) 445-4567
visit the Web site:
Two Rivers Community Development Centre (TRCDC)
http://tworivers.ca/main.php?lnknum=1
Venture Creation Program
This is an entrepreneurship and financing initiative for youth 15-30 living in the Waterloo or Wellington regions who are interested in starting and operating a business. This 34 week, full time, hands-on program is offered by the Waterloo Region District School Board and funded by Human Resources Development Canada. Start your business as early as week 17. Upon successful completion of the program, participants can earn up to $7,000 to be applied towards their business launch and up to 5 high school credits.
For further information:
please call (519) 741-2221
visit the Web site:
Venture Creation Program
http://www.venturecreationprogram.com
You may find additional information, alternative financing providers and can perform a search designed to help small businesses find the best micro-credit financing opportunities available in the "Sources of Financing" section of Industry Canada's Strategis Web site. Your local economic development office or public library may also have information on organizations that offer business support services in your area.
For further information:
visit the Web site:
Sources of Financing: Micro-Credit
http://strategis.ic.gc.ca/epic/internet/insof-sdf.nsf/en/h_so03327e.html
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