Access riverdale Community Loan Fund Presentation for The Social Economy Centre, oise

ACCESS Riverdale Community Loan Fund

• Presentation for The Social Economy Centre, OISE

• November 8, 2006

• Susan McLean

What is the ACCESS Riverdale Community Loan Fund?

• ACCESS Riverdale is a loan guarantee fund created by investments from socially minded individuals, organizations, and businesses.

• Our Goals are:

• To help promising local entrepreneurs

• Gain access to financing
• Overcome barriers to financial growth

• Make a contribution to the community

What is the ACCESS Riverdale Community Loan Fund?

• ACCESS Riverdale helps small and emerging businesses facing financial barriers in the communities of east Toronto to meet their need for credit by securing loans up to $5000.

What is the ACCESS Riverdale Community Loan Fund?

• The loan fund is used to guarantee loans through Alterna Savings.

• Individual loans are made using a character based lending decision.

A brief history of ACCESS Riverdale…

• Access Riverdale was formed in 1999 as a project of the Riverdale Community Development Centre (RCDC).

• In 2005 the government terminated their funding, Access received charitable status at approximately the same time.

• Access Riverdale is now a 100% volunteer organization.

Some ACCESS Riverdale Statistics…

• The loan fund value is $165,000

• Funds currently leant out ~$35,000

• Since inception Access has leant out $390,000 and helped 75 small businesses

• The loan repayment rate is approximately 97%

ACCESS Clients …

• have been running a business less than two years
• may have no credit history in Canada
• May have a poor credit record due to unemployment or illness

Investing in/ Donating to ACCESS

• receive between 0-2% interest
• investments can be made for one - three year terms
• receive periodic updates on the loan fund and can participate in events

How does the loan approval process work ?

• Whether a loan is approved or declined is the decision of the Loan Review Committee. The Committee consists of 10 -15 volunteer loan reviewers. The members share the objectives and values of the loan fund.

How does the loan approval process work ?

• The applicant submits a completed loan application form and supporting documents including business plan and cash-flow, business documents and licenses, leases, training certificates etc.

• The applicant is then interviewed by two committee members (ideally at the location of business)

How does the loan approval process work ?

• The interviewers will focus on four aspects of the application:

• 1. The commitment, reliability, and character of the applicant;
• 2. The relevant skills and abilities of the applicant;
• 3. The viability of the business and the reasonableness and potential benefits of the requested loan;
• 4. The capacity of the applicant to manage loan payments based on current and future income.

How does the loan approval process work ?

• The committee seeks to reach a consensus on decisions about loan applications. If the loan is approved, the loan funds are disbursed through Alterna Savings.

Loan Follow Up

• The committee will assign a contact who will follow-up with the loan recipient on a quarterly basis.

• We are also piloting a mentorship program for loan recipients in partnership with CESO (Canadian Executive Services Organization)

Other projects: “ACCESS Light”

• “ACCESS Light”- currently piloting a program to provide loans for lighting retrofits for small businesses in conjunction with the Cool Shops Program of the Clean Air Foundation and Toronto Atmospheric Fund

Questions?

• For more information, please visit our website at:

• www.accessriverdale.com

• or leave us a phone message at:

• 416-462-0496