Presentation on theme: "Microfinance – Get Into Business Innovative Access to Financial Services for low income entrepreneurs."— Presentation transcript:
Microfinance – Get Into Business Innovative Access to Financial Services for low income entrepreneurs
A Revolutionary Idea from Far Away Grameen Bank 1970’s founded by Mohamed Yunus $27 total loans for 40 women-basket weavers to buy their materials and startup their own microenterprise No Collateral – formed a group to jointly guarantee their loans Poor people pay back loans 99% of the time Escape the Poverty Trap Today, 2 million loans a year 10,000 members per month out of poverty The idea is simple, give people a Hand Up, not a Hand Out.
Microfinance in Canada Handful of Canadian Institutions use Idea Vancity’s own Peer Lending Program over 7 years old Focus on low income entrepreneurs, marginalized groups, new immigrants Increase access to financial services Vancity helped over 600 entrepreneurs get started! Four Women Un Gato – A Vancity Peer Lending Group
Why is Vancity Involved? Our Mission is “Working with people and communities to help them thrive and prosper” Canada’s largest Credit Union with $10.5 billion in assets & 340,000 members, 42 branches throughout the lower mainland Community Leadership – We share 10% profits community & Provide Access to Financial Services to people who cannot get it Investment into our community – serving as a catalyst for the self-reliance and well being of our community and membership A Commitment to increase access to financial services from savings, home ownership to startup business loans
We Deliver Micro Credit Products Tailored to fit Small Business needs Peer Lending < $5,000 Microloans $5,000 - $35,000 Conventional Lending $35,000 + The right loan for the right stage of business
Vancity’s Peer Lending Program Group based lending Access to Business Credit based on group Collateral An opportunity to build or improve their credit rating A support network of business peers
Access to Peer Loans Based on Repayment Ability $1,000 $2,000 $3,000 $4,000 $ 5,000 o Start with $1000 Each Group Member oMinimum 3 month term up to 24 months o Interest + VanCity Prime + 3%
How Does it Work?
Keep The Group Strong to Keep Growing Peer Group Or Group Approval Access to Capital $ Monthly Group Support Business Idea Growth Idea
Other Community Business Loans Micro-Loans $5000 to $35,000 Business Loans for Experienced Entrepreneurs with Good Credit History and a Formal Business Plan Advice and Business Loans for Entrepreneurs with disabilities $ $35,000 Business Loans for Entrepreneurs with disabilities with one on one assistance
Questions ? Get Started 1.Form a Group 2.Complete the Workbook 3.Lets Meet