Community Investing in Canada

This paper was commissioned by the  Microcredit Summit Campaign in 2006.The paper argues that community investing is a strategy to address unemployment, environmental degradation, economic restructuring, poverty and social exclusion. It also generates opportunities and resources for people and communities that are underserved by the mainstream financial institutions.The paper:

• Describes the community investing sector in Canada;
• Explains the differences in the use of the terms micro-credit and community investment in Canada;
• Lists the five markets that community investment targets:
  • Entrepreneurs,
  • Women, recent immigrants, refugees and minorities,
  • Environment,
  • Underserved neighbourhoods and communities,
  • Individuals who need housing.

The paper lists:

• The following characteristics of the community investment sector in Canada, which:
  • Is community-based;
  • Is flexible and responsive;
  • Has community-controlled capital;
  • Has alternate risk assessment methods;
  • Needs operating dollars.
• The sources of capital for community financing.

The paper explains why Canadians make community investments, and looks at innovative policies and programs that support the growth of community investing in Canada.It lists the challenges for the Canadian sector and concludes with the following remarks:

• The community investing sector in Canada is small, but well established;
• Many exciting innovations have occurred as funds have grown;
• Canadians are being given opportunities to transform their own lives, and to contribute to their communities;
• Community-based finance creates resilient communities;
• The 'Canadian Community Investment Network Cooperative' believes that it is time to increase the scale and effectiveness of the sector.