Some community investments come with the added advantage of RRSP eligibility Forged in an environment where innovation has been the key to survival, both community investments and their investors come in many forms. In some cases, organizations operate as a blend of these different vehicles and work in conjunction with governments and community partners to identify, develop, and deliver projects and services. Funds that provide capital for community projects invest in projects like the construction of affordable housing, seniors centres, and community centres. Such funds often supply both the capital and expertise to make projects viable. The Acre Fund, for instance, provides both micro-loans and project management skills to get projects through the planning phase, and then mortgages to finance construction.
Business start-up loan funds come in several forms.
With some, the investor's money is held in a term deposit and used as collateral for business start-up loans made to those who, for various reasons, don't otherwise qualify for a loan. Modeled on the Grameen Bank in Bangladesh, business loans are given to small groups of people who assume responsibility for each others' debts. Here, the investor usually receives a small interest payment on the loan. Other funds, like the Edmonton Community Loan fund, draw upon individual investments, donations, and federal government programs to make loans directly to individuals. Across the country, such funds have been key in creating employment and alleviating poverty.