Community Micro Lending at Alterna Savings by richman6

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									Community Micro Lending at
Alterna Savings
November 8, 2006
What is the Community Micro
Loan Program?
Micro Finance:
• It is a development tool
• The activities usually involve small loans
• Loans are typically for working capital and access to
   repeat and larger loans

Micro Entrepreneur:
• Business owner
• Enterprises include such activities as childcare,
   gardening, arts and crafts, computer repair and
   catering.
What is the Community Micro
Loan Program?
• Established in June 2000
• Provide loans along with a full range of financial
  services
• As of December 2005, the portfolio balance was
  $305,039 with 89 active loan participants
• To date, the program has supported over 373 micro
  businesses
• Micro members have personal financial products
  totaling over $883,092
    Community Micro Loan Program
             Small loans for small businesses

Our Objectives:

•   To promote entrepreneurship, job creation and economic
    growth in the Greater Toronto Area
•   To provide an encouraging and supportive environment for
    self-employment

Our Task:

•   To provide business loans and full financial services to
    the self-employed who cannot otherwise access credit from
    traditional financial institutions
    Community Micro Loan Program
             Small loans for small businesses

Our Focus:

Those who can not access credit from traditional
financial institutions, such as:

•   Low income individuals
•   Self-employed individuals
•   Business start-ups
•   Businesses in operation between 1 and 5 years
What are we looking for?

Loan applications where:

•   The amount ranges between $1,000 and $15,000
•   Terms range from 1 to 5 years
•   Payments are scheduled monthly
•   Interest rate is prime + 6%
•   Administration fee is 6% of the amount borrowed
What are we looking for?


Loan applications where the purpose of the loan is to
fund:

•   Working capital
•   Fixed assets
•   Rent
•   Promotional materials
What are we looking for?


Applicants must have a good plan, good skills, and good
credit history.

• Must submit a business plan including a 12-month
  projected cash flow
• Must demonstrate that they have the skills to make
  their business a success
• Must demonstrate that they have the character to
  meet their commitments and that they are
  responsible with creditors
What are we looking for?

Required Documentation:

• Loan application
• Business plan
• Tax assessment from Canada Customs &
  Revenue Agency
• 12-month projected cash flow
• Business and personal references
• Business registration
• Photo ID
 What are we looking for?
 Assistance is available for a variety of businesses
 such as:

• Retail and wholesale      • Health and hygiene
• Import and export         • Computer sales and
• Janitorial and cleaning     service
  services                  • Desktop publishing
• Graphic design and        • Clothing design
  publishing                  and manufacturing
• Landscaping               • Arts and Crafts
• Accounting and            • Catering
  bookkeeping
Free Promotion and
Development Opportunities
• Member Information Boards in branches
• Member Display Table at Bay Street Branch
• Community Information Fair at Alterna Savings’
  Annual General Meeting
• Video Board at Bay Street Branch
• Networking Café
A Community Micro Loan
Success Story
Lynda Morris had a dream of starting her own computer-consulting business.
Morris taught herself about computers while a single mother on social
assistance. After Morris attended the Self Employment Assistance (SEA)
Program, offered by Human Resources Development Canada, she felt ready to
move forward. But, when she tried to get a bank loan for her new company she
was declined.

At the SEA program, Morris heard about Alterna Savings’ Community Micro
Loan Program. Morris applied for a $3,000 loan and was accepted. Niclyn
Computer Consultants was born. Today, Morris has about 300 clients and has
hired a full-time employee to help.
Community Micro Loan Participants
Community Micro Loan Participants
Community Micro Loan Program

 The Community Micro Loan Program has
 provided economic inclusion for individuals who
 were once excluded

 Speaker:
 Susan Henry
 Community Economic Development Specialist

								
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