What is a Community Economic Development Investment Fund? A Community Economic Development Investment Fund or CEDIF is a pool of capital raised in a community through the sale of shares. The money is then invested in new or existing local businesses. What are the benefits in buying shares? – a 30% tax credit available under the Equity Tax Credit – a 20% guarantee for four years from the time of investment – pre-approved holding status for a self-directed RRSP What are the benefits for my community? – jobs created in the community – support for a locally produced products and services – local control over investment decisions Who can invest? – any resident of Nova Scotia over the age of 19 is eligible to invest in a CED Investment Fund, anywhere in the province. Where will my money go? Your money will purchase shares in the CED Investment Fund. The fund will then use this money, known as capital, to operate or invest in local business(es). Charitable, non-taxable, and not-for-profit organizations are not eligible to take part in the program. Who decides how my money will be invested? A board of directors will manage the fund. The board is selected by the investors (or shareholders). They decide which business or businesses to invest in. At least six directors must be from the community. How much money can I expect to make? Returns are determined solely by the performance of the business(es) into which the fund invests. How will I know how my investment is doing? The program has two requirements to keep investors informed. An annual auditor’s report must be distributed to the shareholders and an annual general meeting must be held. Is there a role for government in overseeing these funds? The board of directors should work closely with one of the Office of Economic Development’s Business Service Centres. Staff at these centres assist the board of directors in preparing the required documents for the Nova Scotia Securities Commission and Department of Finance.
Invest In Your Community... Nova Scotians invest more than $600 million annually in RRSPs. Less than 2% of this is reinvested in Nova Scotia. With CEDIFs, you can keep investment dollars at working in your community. Through Community Economic Development Investment Funds, you and your neighbours can pool your money and invest in business(es) in your community, creating jobs and supporting further economic growth. What are participants saying about CED Investment Funds? “A CED Investment Fund puts community capital to work in your own community and provides jobs and income for your friends, family and neighbours. Everyone benefits.” Greg MacLeod, President BCA Investment Co-operative Ltd. Sydney “The development of CED Investment Funds means Nova Scotians have a smart way to put their money to work in their province. If Nova Scotians reinvested their existing RRSPs in their own communities, the economic impact would be as significant as development of offshore oil and gas.” Brian Watling, Director Renewable Energy Services Ltd. Windsor (Involved in 9 CEDIF’s to date)
What is a Community Economic Development Investment Fund?
Where can I get more information? If you would like to develop a fund or find out more about funds in your area, please contact a Business Service Centre or contact the Manager of Community Investment Funds: Chris Payne Phone: (902) 424-1259 Fax: (902) 424-1263 E-mail: paynecj@gov.ns.ca CED Investment Funds website: www.gov.ns.ca/econ/cedif
Office of Economic Development
Financing Economic Growth in your Community BCA Investment Co-operative Limited Based in Sydney, this Fund has raised (4 offerings), and invested, $2 million in business opportunities in Cape Breton. It is the first and largest Fund, with more than 400 investors. Greg MacLeod; Charles MacDonald 567-0000 Concrete Investments Limited Invested more than $300,000 into GS Concrete (Windsor) to expand their pre-cast concrete operations. Erik Twohig 456-0472 West Nova Cranberry Venture Fund Ltd. Raised over $100,000 to invest in Cranberry operations. Proceeds invested in a single farm. David Robinson 424-8859 Hants Ventures Inc. Invested the proceeds of their offering ($432,000) into the Production Schoolhouse, a Windsor-based IT training centre. This business failed and the Fund has been wound down in accordance with the provisions of the Act. West Nova Agro Commodities Limited The community of Lawrencetown raised $126,000 which levered additional funds to enable the development of the farm products storage facility. Jean & Russell Ward 665-2567 / 824-0152 Northeastern Community Investments Inc. Based in Antigonish, this Fund has capital of $1.5 million which has invested in a wood treatment operation and a bottled water company. Robert Inglis 863-3389 / 783-2318 Ad Equity Incorporated This Bridgewater/Halifax Fund raised $478,000 to invest in Adventus Inc., a software maker that develops learning software for keyboard instruction. Jim Mullen
The Evangeline Wind Field Incorporated This Fund, developed in partnership with other wind field funds throughout the Province, raised $112,000 to invest in renewable energy/ wind energy projects in its region. Terry Daniels 798-0187 The Bay Wind Field Incorporated This Fund, developed in partnership with other wind field funds throughout the Province, raised $480,000 to invest in renewable energy/ wind energy projects in its region. Coral Belliveau 769-0879 River John Oceanfront Resort Ltd. This Fund developed a rental cottage operation near River John on the Northumberland Strait. The CEDIF invested more than half of the $1 million + development costs. Michael Dudka 455-0022 Baie Chedabucto Bay Investment Fund Based in Arichat, this Fund has raised more than $400,000 to invest in business opportunities on Isle Madame Yvon Samson 226-0064 VMP Holdings Inc. This Fund raised capital ($183,000) which was invested into Virtual Media Productions in Sydney. Sean Coyle 562-4146 Vale Corporate Training Investments Inc. Through two offerings, Vale has raised and invested $460,000 into Ledgehill, a corporate training facility located near Middleton. Charles Bower; John Langmead 585-7124 The Cape Breton West Wind Field Inc. This Fund,developed in partnership with other wind field funds throughout the Province,raised $100,000 to invest in renewable energy/ wind energy projects in its region. Neal Livingston 258-3354 North Spring Equity Ltd. This Fund has invested the proceeds of its 2 offerings ($200,000) into Springvale Nurseries Inc., to allow them to expand their capacity and enable them to exploit business opportunities in tree replacement resulting from Hurricane Juan last fall. Paul Grimm 538-7542
Just Us! Fair Trade Investment Co-operative Ltd. This Wolfville coffee operation imports coffee and sells through grocery and specialty stores in Atlantic Canada. With over $700,000 in capital through two offerings, the cooperative has expanded operations and taken on new projects. Jeff Moore 542-7474 Black Business Community Investment Fund Sponsored by the Black Business Initiative, this Fund raised more than $100,000 to invest in Black owned business in Nova Scotia. Gordon Doe 426-6985 4EVERSPORTS This Fund raised and invested $500,000 into growing 4Eversports, a Sydney-based developer of wireless Teepod scoring systems for golf courses. Robert Bobbett; Alan MacArthur 562-4653 La Residence Acadienne In Cheticamp, an investment of $474,500, from both tenants and community at large, allowed for the development of a seniors housing facility. Eric Chiasson 224-1952 New Dawn Nearly $300,000 was invested in this Fund to allow New Dawn to expand its investment into companies in industrial Cape Breton Rankin MacSween; Jim O’Neil 539-9560 Valley Funeral Home Co-op Investors put $160,000 into this Fund which will develop and operate a cooperative funeral home in Coldbrook/Kentville. Boyd Taylor 678-6752 Victoria County Community Investments This Fund raised $600,000 to take over the long-term debt of the Village Coop Store in Baddeck. Bruce MacDonald 295-1202
Individual investors are required to maintain their investment in a CEDIF for a minimum of four years.