Creating thriving rural communities where people are able to live, work, and enjoy social activities in their region has long been an objective of the Community Business Development Corporation (CBDC).

We are proud to support Social Enterprises that operate a business venture in rural-based communities.

What is a Social Enterprise?

Social Enterprises are businesses producing goods and services for the market economy, but manage their operations and redirect their surpluses in pursuit of social, environmental and community goals. Typically, social economy enterprises grow out of community economic development strategies involving citizens, governments, the voluntary sector, business, learning institutions and other partners.

Social Enterprises can take the form of a non-profit organization, a cooperative, or a membership organization, characterized by an entrepreneurial philosophy, i.e. the production of goods and services and revenue generation that is separate from public grants.

CBDC Social Enterprise Loans are available to non-profits, including societies, charities, and cooperatives in need of business support (in the form of a loan or loan guarantee), that will be used to purchase assets, renovate existing assets or expand a social enterprise. CBDC Social Enterprise Loans are to support the financing of revenue generating activities of registered non-profit organizations.

Social Enterprises differ from entrepreneurs in the following ways:

1.Earned income strategies tied to mission; and,

2.Driven by a double bottom line, blend of social and financial returns.

Registration Options of Social Enterprises include the following:

1.Non profit organization

2.Co-operative

3.Charity

a.Charitable Organization

b.Public Foundation

c.Private Foundation

We encourage you to refer to a solicitor, Canada Revenue Agency, Registry of Joint Stocks and/or Industry Canada for detailed information on the proper registration of their Social Enterprise.

The CBDC can provide up to $150,000* per eligible borrower (Please note, in certain circumstances, CBDCs can provide financial assistance that exceeds $150,000 per eligible borrower) in the form of a repayable loan with competitive interest rates and repayment terms.

The Social Enterprise Loan can be used to finance the purchase of equipment or other items that are necessary to continue business activities.

Loan amortizations can generally be up to ten years  based on the life expectancy of the asset(s).

Social Enterprise loans should be secured. This may include a General Security Agreement (GSA), collateral mortgage, trade receivables and personal guarantees by Executive or full Board of the Social Enterprise.

The eligibility criteria for the CBDC Social Enterprise Loan includes the following:

•The Social Enterprise and the business activity is located in rural areas;

•New and existing Social Enterprises carrying on business activity are eligible to apply for this loan;

•Start-up of a new Social Enterprise or the expansion, renovation, or upgrading of an existing one are acceptable;

•Social Enterprises conducting year-round and/or seasonal business activity qualify;

•The Social Enterprise’s business activity should demonstrate a reasonable expectation of economic viability, and ensure that fundamental business aspects are present, as well as job creation and maintenance is met.

CBDC lending criteria for a Social Enterprise Loan include:

•A Social Enterprise must provide a detailed business plan;

•A completed CBDC application must accompany the business plan;

•Provide proof of equity (20% minimum, can use 5% cash);

•A Social Enterprise must provide credit history/business supplier references;

•Proof of management and board of directors ability to repay debt;

•Security including personal guarantee of Executive; and,

•Borrowing resolution submitted along with the business plan and application.

Social Enterprise funding can be used for (but are not limited to) the following:

•Purchase of land, building and equipment;

•Purchase of inventory;

•Working capital; and,

•Bridge financing.

It’s all about you and your community! Being able to create sound economic and socially conscious communities fosters a strong and vibrant lifestyle for everyone to enjoy.