1. Community Micro Lending at Alterna Savings November 8, 2006

2. What is the Community Micro Loan Program? Micro Finance: It is a development tool The activities usually involve small loans Loans are typically for working capital and access to repeat and larger loans Micro Entrepreneur: Business owner Enterprises include such activities as childcare, gardening, arts and crafts, computer repair and catering.

3. What is the Community Micro Loan Program? Established in June 2000 Provide loans along with a full range of financial services As of December 2005, the portfolio balance was $305,039 with 89 active loan participants To date, the program has supported over 373 micro businesses Micro members have personal financial products totaling over $883,092

4. Community Micro Loan Program Small loans for small businesses Our Objectives: To promote entrepreneurship, job creation and economic growth in the Greater Toronto Area To provide an encouraging and supportive environment for self-employment Our Task: To provide business loans and full financial services to the self-employed who cannot otherwise access credit from traditional financial institutions

5. Community Micro Loan Program Small loans for small businesses Our Focus: Those who can not access credit from traditional financial institutions, such as: Low income individuals Self-employed individuals Business start-ups Businesses in operation between 1 and 5 years

6. What are we looking for? Loan applications where: The amount ranges between $1,000 and $15,000 Terms range from 1 to 5 years Payments are scheduled monthly Interest rate is prime + 6% Administration fee is 6% of the amount borrowed

7. What are we looking for? Loan applications where the purpose of the loan is to fund: Working capital Fixed assets Rent Promotional materials

8. What are we looking for? Applicants must have a good plan, good skills, and good credit history. Must submit a business plan including a 12-month projected cash flow Must demonstrate that they have the skills to make their business a success Must demonstrate that they have the character to meet their commitments and that they are responsible with creditors

9. What are we looking for? Required Documentation: Loan application Business plan Tax assessment from Canada Customs & Revenue Agency 12-month projected cash flow Business and personal references Business registration Photo ID

10. What are we looking for? Retail and wholesale Import and export Janitorial and cleaning services Graphic design and publishing Landscaping Accounting and bookkeeping Health and hygiene Computer sales and service Desktop publishing Clothing design and manufacturing Arts and Crafts Catering Assistance is available for a variety of businesses such as:

11. Free Promotion and Development Opportunities Member Information Boards in branches Member Display Table at Bay Street Branch Community Information Fair at Alterna Savings’ Annual General Meeting Video Board at Bay Street Branch Networking Café

12. A Community Micro Loan Success Story Lynda Morris had a dream of starting her own computer-consulting business. Morris taught herself about computers while a single mother on social assistance. After Morris attended the Self Employment Assistance (SEA) Program, offered by Human Resources Development Canada, she felt ready to move forward. But, when she tried to get a bank loan for her new company she was declined. At the SEA program, Morris heard about Alterna Savings’ Community Micro Loan Program. Morris applied for a $3,000 loan and was accepted. Niclyn Computer Consultants was born. Today, Morris has about 300 clients and has hired a full-time employee to help.

13. Community Micro Loan Participants

15. Community Micro Loan Program The Community Micro Loan Program has provided economic inclusion for individuals who were once excluded Speaker: Susan Henry Community Economic Development Specialist