* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download D6_02-CEDIF
Survey
Document related concepts
Private equity wikipedia , lookup
Fund governance wikipedia , lookup
Stock selection criterion wikipedia , lookup
Syndicated loan wikipedia , lookup
Private equity secondary market wikipedia , lookup
Private equity in the 1980s wikipedia , lookup
Corporate venture capital wikipedia , lookup
Global saving glut wikipedia , lookup
Negative gearing wikipedia , lookup
Investor-state dispute settlement wikipedia , lookup
International investment agreement wikipedia , lookup
Land banking wikipedia , lookup
Investment management wikipedia , lookup
History of investment banking in the United States wikipedia , lookup
Transcript
International Forum on the Social and Solidarity Economy Q: The Basics…what is a CEDIF? A: Access to “patient” Capital • • • • • • Company or co-operative Set up to raise investment capital Minimum 6 directors Elected at AGM and make investment decisions on behalf of the shareholders Minimum $100,000 & 25 investors Average Fund is about $500,000 Port Hood Beach Sunrise RV Park Raise Capital- Close Offering- Make Investment (s) 8/3/2017 2 Investment Incentives to Investors • NS personal income tax credit of 35%- as of January 1, 2010 • Rollovers (5)= 20%; (10)= 10% • Carry back (3)/ forward (7 yrs.) • Maximum annual tax credit now $17,500 ($50,000 investment) • Does not reduce ACB of investment. 8/3/2017 Marigold Cultural Centre, Truro 3 www.ccwf.ca Watts Wind Energy 1.5 mw Vensys v77 wattswindproject.com/ For-profit company or co-operative, set up to raise/invest capital Active Business Income Tax credit of 35% [$50,000/ $17,500] Rollovers / Adjusted Cost Base Carryback (3 yrs.)/ forward (7 yrs.) 8/3/2017 4 Will People Invest in this venture? Now 48 CEDIFs: • Manage than $40 million in assets • more than 5,000 individual investor’s • 9 Funds paying dividends annually • Tax credits – financial incentives • Community owned and controlled * Blind Pools raise capital to invest into business in the community but do not know the investments prior to raising capital vs. Funds which invest into one business 8/3/2017 5 Potential CEDIF Opportunities 8/3/2017 Specific Investment(s) Blind Pool Template Documents Define Community Partners Directors Pilot Example: Development Team Examples: •Just Us •Unique •Cranberries •Watts Wind Energy •BCA and New Dawn •Baie Chedabucto •Black Business •Northeastern Community Investment Inc. 6 8 Lessons Learned Business Leadership Requirements to Create Expect the Unexpected Successes & Failures Additional Rounds of Financing Market for Shares • Board of Directors • Defined community • Min 5 directors; $100K; 25 investors • Delays, unforeseen challenges • NCII; Just Us; Marigold; • Production Schoolhouse; 4Eversports • Many CEDIF examples • Just Us has done 7 offerings • Liquidity- no market to sell shares • The “right” investor(s) IPO & Tax Issues Valuation 8/3/2017 • Difficulty finding valuation for CEDIFs 7 Closing Comments • CEDIF-> unique to Nova Scotia but not much longer – Prince Edward Island launched its program this July – New Brunswick – Alberta • • • • Getting through the process is not quick or easy…nor should it be Understand the CEDIF program, rules, requirements, and nuances Partnerships very important; community buy-in Identified financing gap at $100,000 to $1,000,000; capital needs outside this range may be better served by other tools New Social Enterprise Fund- partner with local Credit Unions to deliver access to capital; up to $2 million pilot program 8/3/2017 8 “CEDIF is a wonderful and innovative community investment tool” Chris Payne, MBA, CMA Nova Scotia Economic Development (tel) (cell) Email: Website: 8/3/2017 902-424-1259 902-430-6469 [email protected] www.gov.ns.ca/econ/cedif 9