Community Micro Lending at Alterna Savings

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Community Micro Lending at Alterna Savings

• November 8, 2006

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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.

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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

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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 tothe self-employed who cannot
  otherwise access credit from traditional
  financial institutions

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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

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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

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What are we looking for?

• Loan applications where the purpose of the loan
  is to
• fund
• Working capital
• Fixed assets
• Rent
• Promotional materials

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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

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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

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What are we looking for?
Assistance is available for a variety of
businessessuch as

• Retail and wholesale
• Import and export
• Janitorial and cleaning services
• Graphic design and publishing
• Landscaping
• Accounting and bookkeeping

• Health and hygiene
• Computer sales and service
• Desktop publishing
• Clothing designand manufacturing
• Arts and Crafts
• Catering

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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

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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.

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Community Micro Loan Participants
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Community Micro Loan Participants
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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