1. International Forum on the Social and Solidarity Economy

2. 5/26/2016 2 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 Raise Capital- Close Offering- Make Investment (s) Port Hood Beach Sunrise RV Park

3. 5/26/2016 3 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. Marigold Cultural Centre, Truro

4. 5/26/2016 4 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.) www.ccwf.ca

5. 5/26/2016 5 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

6. Potential CEDIF Opportunities 5/26/2016 6 Blind Pool Define CommunityDirectors Development Team Examples: BCA and New Dawn Baie Chedabucto Black Business Northeastern Community Investment Inc. Specific Investment(s) Template DocumentsPartners Pilot Example: Just Us Unique Cranberries Watts Wind Energy

7. 5/26/2016 7 8 Lessons Learned Board of Directors Business Leadership Defined community Min 5 directors; $100K; 25 investors Requirements to Create Delays, unforeseen challenges Expect the Unexpected NCII; Just Us; Marigold; Production Schoolhouse; 4Eversports Successes & Failures Many CEDIF examples Just Us has done 7 offerings Additional Rounds of Financing Liquidity- no market to sell shares The “right” investor(s) Market for SharesIPO & Tax Issues Difficulty finding valuation for CEDIFs Valuation

8. 5/26/2016 8 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

9. 5/26/2016 9 “CEDIF is a wonderful and innovative community investment tool” Chris Payne, MBA, CMA Nova Scotia Economic Development (tel)902-424-1259 (cell)902-430-6469 Email: paynecj@gov.ns.capaynecj@gov.ns.ca Website:www.gov.ns.ca/econ/cedifwww.gov.ns.ca/econ/cedif