affordable housing & social enterprise

Social Enterprise and Housing

May 2010

A presentation to NBNPHA

By Seth AsimakosGeneral ManagerSaint John Community Loan Fund

ACCSE defines social enterprise in the following way:

Social enterprises are (businesses owned by) non-profit organizations, selling goods or services in the market place for the dual purpose of generating income and creating a social, environmental and /or cultural value.

Definition

Atlantic Council for Community and Social Enterprise 

Social Enterprise and Housing

In spite of strong ‘economic growth’ in Canada, many communities have seen increasing levels of inequality, disadvantage and decline.

Territorial, parts of territories, cultural, linguistic, ethnic

Why?

Building Local Assets

To improve social conditions for people living in Saint John by promoting economic independence and fostering entrepreneurship in our community.

Our mission

The Saint John Community Loan Fund helps individuals:

• create income

• build assets

• and attain greater self-reliance.

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Development1997 Idea - Urban Core Support Network

1998 Development Phase

1999 First business loan

2000 Incorporation

2001 Charitable Status

2002 Evaluation

2003 Vision

2004 Shelter Loan

2005 Financial Literacy Training Added

2007 Affordable Housing and Real Estate Investment

2008 Neighbourhood Leadership (Power Up) Training

2009 Youth Entrepreneurship (YES) Training

2009 Asset Building Training and Matched Savings

2010 Enterprising Women Training

2010 First NPO Loan

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The Loan Fund delivers loansto people living in poverty.

• 50% are working poor • 50% are receiving government assistance• 60% of loans go to women• 95% of training participants are women

Target

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• Promote community investing

Which is converted to:

• Loans

• Training

• Housing Development

• Enterprise Development

• Matched Savings

Products and services

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I wish I had taken this course years ago.

Money Matter$ students

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I bike to work, thanks to the Loan Fund

Will Belzil 

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Our experience with the SJCLF has been all positive. They helped us in being able to move to a healthier place for our family.  Pamela Crockett & Clifford LeBlanc 

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Welcome new beginnings and advocate for their rights

Social Development

voice

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Enterprising Women

– Train women to develop business plans– Launch businesses– Provide ongoing follow-up

– National project with funding from Canadian Women’s Foundation

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Operating Revenues

38% Contracts

17% Non-corporate foundations

15% Corporations and their foundations

15% Government grants

9% Social enterprise

8% Misc. including interest

Loan Pool

100% non-government

investments or donations

Loan Loss Reserve

100% non-government

donations or fees

Capital

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Greeting cards

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1

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Series1

Series2

Series3

Series4

Series5

Series6

Series7

Greeting Card Sales 2003-2009Raises Close to $70,000

Thank You HDC

We’d been located on the 3rd floor of the Market with our partner, the Human Development Council for 10 years

right here

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To this! Yikes…

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Enterprising Non Profits

• Coverdale Centre for Women

• Housing Alternatives

• Stella Bury Community Services, St. John’s

• Centre for Social Innovation, Toronto

Recent research in Atlantic Canada

How much will you require to finance you’re expansion/new venture?

0.0% 5.0% 10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Less than $20,000

$20,000 - $49,999

$50,000 - $99,999

$100,000 - $499,999

$500,000 or more

% of respondents

• 42% of those surveyed plan to start a new social enterprise

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Policy Recommendations

• loan-security program for SEOs

• regional loan pooling and a government guarantee

• Tax incentives to leverage investment

• support feasibility studies on SEO business plans and should fund ‘proof of concept’

Provincial governments should consider the following to support growth in social enterprise:

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Our Next Project

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Enterprising non-profits

Mixed Housing

Café?

Challenges and recommendations

• Fee for service that pays total cost• That recognizes overhead cost• For hiring skilled staff

• For ongoing staff development• For research and development (innovation)• For evaluation

• Flexibility to recognize value in combining building uses

• Tax incentives to raise more private capital• Guarantee to enable longer term investments

Capacity $

Revenue $

Investment $

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Innovation

Innovation is about being more effective and efficient in providing goods and services and about finding creative ways to address social and economic problems faced by individuals and communities.

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Thank You!

For more information:www.loanfund.ca

www.accse.ca http://seechangemagazine.ca/

Mission, Inc.: The Practitioner's Guide to Social Enterprise

To contact Seth Asimakos:loanfund@nbnet.nb.ca

Social Enterprise and Housing