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 MemberoMinimum 3 month term up to 24 monthso Interest + VanCity Prime + 3%

How Does it Work?Micro EntrepreneurWith Business Idea

Contacts VanCityLearn the Basics of Group

Lending

Forms Peer GroupMinimum 3 Members Complete Workbook

Meets with Vancity$1000 Loan

12 months @ $90

Group Meets MonthlyReport on Progress

Get Next LoanRepay Previous Loan & Group is On Time

Keep The Group Strong to Keep Growing

Peer GroupOr GroupApproval

Access to Capital

$

Business IdeaGrowth

Idea

MonthlyGroup

Support

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

$5000 - $35,000 Business Loans for Entrepreneurs with disabilities with one on one assistance

Questions ?

Get Started1. Form a Group2. Complete the

Workbook3. Lets Meet

Vancity Community Business

Solutions

Contact:

peerlending@vancity.ca