New report: Mobilizing community capital for co-op development

Brendan Reimer and Kirsten Bernas of the Canadian Community Economic Development Network have released a report that seeks to address the investment financing challenge that co-operatives face. This research explores the potential for building on existing legislation in Manitoba to create a province-wide CDIF as a financial vehicle to raise equity capital for co-ops by leveraging the provincial Community Enterprise Development (CED) Tax Credit to encourage equity investments in co-operative start-ups and expansions. This research will inform Manitoba’s co-operative community in its pursuit of creating new financing mechanisms for co-op development.

More precisely, the objectives of this research is to:

    • Provide clarity on the legislative potential for the creation of a province-wide CDIF to act as a co-op equity investment fund that would raise capital for co-ops in Manitoba by leveraging the Community Enterprise Development Tax Credit.
    • Identify models that provide equity capital for co-operative start-ups and growth, particularly those that are capitalized by individuals as investors, and identify the particular nature and structure of each model in order to understand the transferability or applicability to the Manitoba model.
    • Identify the requirements for successfully developing a province-wide CDIF in Manitoba focused on co-ops, and some of the benefits and disadvantage

View the full report here

-CCEDNet

Leave a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s