international forum on the social and solidarity economy
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International Forum on the Social and Solidarity Economy. Q: The Basics…what is a CEDIF? A: Access to “patient” Capital. Company or co-operative Set up to raise investment capital Minimum 6 directors Elected at AGM and make investment decisions on behalf of the shareholders - PowerPoint PPT PresentationTRANSCRIPT
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International Forum on the Social and Solidarity Economy
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Q: The Basics…what is a CEDIF?A: Access to “patient” Capital
• Company or co-operative• Set up to raise investment capital• Minimum 6 directors • Elected at AGM and make
investment decisions on behalf of the shareholders
• Minimum $100,000 & 25 investors• Average Fund is about $500,000
Raise Capital- Close Offering- Make Investment (s)
Port Hood Beach Sunrise RV Park
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Investment Incentives to Investors
• NS personal income tax credit of 35%- as of January 1, 2010
• Rollovers (5)= 20%; (10)= 10%• Carry back (3)/ forward (7 yrs.)• Maximum annual tax credit
now $17,500 ($50,000 investment)
• Does not reduce ACB of investment. Marigold Cultural Centre, Truro
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Watts Wind Energy1.5 mw Vensys v77wattswindproject.com/
For-profit company or co-operative, set up to raise/invest capital
Active Business Income
Tax credit of 35% [$50,000/ $17,500]
Rollovers / Adjusted Cost Base
Carryback (3 yrs.)/ forward (7 yrs.)
www.ccwf.ca
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Will People Invest in this venture?
Now 48 CEDIFs:• Manage than $40 million in assets • more than 5,000 individual investor’s• 9 Funds paying dividends annually• Tax credits – financial incentives
• Community owned and controlled
* Blind Pools raise capital to invest into business in the community but do not know the investments prior to raising capital
vs. Funds which invest into one business
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Potential CEDIF Opportunities
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8 Lessons Learned
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Closing Comments
• CEDIF-> unique to Nova Scotia but not much longer– Prince Edward Island launched its program this July– New Brunswick– Alberta
• Getting through the process is not quick or easy…nor should it be• Understand the CEDIF program, rules, requirements, and nuances• Partnerships very important; community buy-in• Identified financing gap at $100,000 to $1,000,000; capital needs
outside this range may be better served by other tools
New Social Enterprise Fund- partner with local Credit Unions to deliver access to capital; up to $2 million pilot program
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“CEDIF is a wonderful and innovative community investment tool”
Chris Payne, MBA, CMANova Scotia Economic Development
(tel) 902-424-1259(cell) 902-430-6469
Email: [email protected]: www.gov.ns.ca/econ/cedif