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Microfinance – Get Into Business Innovative Access to Financial Services for low income entrepreneurs.

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Presentation on theme: "Microfinance – Get Into Business Innovative Access to Financial Services for low income entrepreneurs."— Presentation transcript:

1 Microfinance – Get Into Business Innovative Access to Financial Services for low income entrepreneurs

2 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.

3 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

4 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

5 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

6 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

7 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%

8 How Does it Work?

9 Keep The Group Strong to Keep Growing Peer Group Or Group Approval Access to Capital $ Monthly Group Support Business Idea Growth Idea

10 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

11 Questions ? Get Started 1.Form a Group 2.Complete the Workbook 3.Lets Meet

12 Vancity Community Business Solutions Contact:


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