Instead of maximizing profit at all costs, the Vancity Group uses the tools of finance to tackle systemic challenges and create lasting social and environmental impact.

A financial force for change

As part of the Vancity Group, Vancity Community Investment Bank (VCIB) is a values-based bank and the only federally chartered bank in Canada that exclusively finances organizations and projects that are driving positive impact in our communities.

All of VCIB’s business decisions are guided by the Vancity Group’s four ethical principles:

1.  Accountable and sustainable business leadership that engages in co-operative principles and practices
2.  Economic and social inclusion for all people
3.  Strong and resilient communities
4.  Environmental and sustainability leadership

“Our four principles have been translated into policies that guide every aspect of our organization, from our lending and investing to our procurement practices,” explains Jennifer Hutcheon, VCIB’s Vice President.

“Unconventional doesn’t mean higher risk to us and that’s one of VCIB’s biggest differentiators; sometimes it requires more work to bring impactful projects to life and we’re willing to put in that extra effort.”

Our guiding principles in practice

An example of how we implement principles 1 and 2 is by supporting the preservation and development of affordable housing. VCIB provides specialized financing for housing co-operatives, affordable housing providers, land trusts, and other organizations that are working to make our communities more equitable and affordable.

For instance, VCIB’s financing supported Union Co-operative’s first property purchase – two apartment buildings in Kitchener, Ontario. This acquisition allowed the community co-operative to preserve 58 units of affordable homes. More recently, VCIB’s tailored support helped Phoenix Housing Co-operative refinance its mortgage.

We embody principles 3 and 4 through the implementation of VCIB’s climate finance solutions, which support a net zero transition. For example, VCIB supported the Six Nations of the Grand River Development Corporation’s clean energy portfolio by refinancing the Niagara Region Wind Farm.

The project’s profits will be directed back into the Six Nations community and will be used to stimulate economic opportunity, purchase critical infrastructure, and finance support services like mental health programs.

Our impact criteria and measurement process

In the financial sector, trust can only be achieved when banks are transparent about their lending activities and investments. To meet the Vancity Group’s high standards of transparency and accountability, we track, analyze, and report the impact of our financial activities in Vancity’s Annual Report.

When it comes to lending and investing, VCIB carefully considers the degree to which our financing will positively impact communities and the environment by applying a holistic assessment process.

When evaluating a business loan application, we look at the impact a project will have with respect to people and planet as well as the financial risks and returns. If the project aligns with our values, the financing application is reviewed against the Vancity Group’s Community Impact Transaction (CIT) Guidelines. If the application is for a clean energy project, it is also tested to fit within our Energy Policy.

As we’re evaluating each application, we consider the degree to which a loan may facilitate emissions reductions, provide benefits to underserved communities, or pioneer new business models to accelerate impact. To validate all impact claims, we complete thorough due diligence and collect relevant documentation. Finally, if the project meets our impact guidelines, the application can proceed through VCIB’s typical lending approval process, which includes an assessment of various credit risk factors prior to final adjudication of the application.

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Visit our website to learn more about VCIB’s products and services. If you’re a values-driven organization, or you’re looking to finance an impactful project, get in touch.

When she was 12 years old, Turner and her family arrived in Canada as refugees. Her parents had divorced, her brother was in the criminal justice system, and for a time she experienced homelessness. Turner was in dire need of support, but she found it very difficult to find.

“There’s a lack of clarity on eligibility criteria,” said Turner. “There are all these transparency issues of end-users not knowing how to navigate [the system], or only getting the help that they need by accident because they happen to know somebody.”

In the decades that followed, Alina Turner pursued a career in social policy research and secured a PhD in socio-cultural anthropology. However, it wasn’t until she started working at the United Way of Calgary and the Calgary Homelessness Foundation that Turner saw a gap between social service seekers and the programs being offered;

“I knew we were funding all of these social programs, so why weren’t they showing up when people searched for them?”

Inspired by this question, Alina Turner and her husband, Travis Turner, launched HelpSeeker – a social technology B Corp that helps people find the support, resources, and services they require. The organization currently serves more than 200 municipalities in Western Canada and the Greater Toronto Area, connecting homeless and at-risk Canadians with local social agencies.

Through HelpSeeker’s free app, Canadians who need support get targeted and geo-located recommendations for more than 280,000 social assistance services and resources across the country, including shelters, daycares, and mental health services, to name a few.

As Co-President and Co-Founder of HelpSeeker, Alina Turner leads the HelpSeeker team in developing and implementing social technology solutions to complex and intersected social issues like addictions, homelessness, mental health, safety, and violence.

With the company’s data-dashboard, funders and social policy researchers are also able to access real-time information about how their residents are accessing community services — and where resources are needed most.

A new partnership spurs rapid growth during the pandemic

When the pandemic hit, thousands of Canadians were forced out of work and many more were seeking access to new social programs and support. To meet the increasing demand for the app’s resources, HelpSeeker needed to invest in significant research and development to continue to service both users and social policy makers.

This is when HelpSeeker’s relationship with Vancity Community Investment Bank (VCIB) was born. To support HelpSeeker, VCIB provided a $500,000 line of credit to provide capital for growth, research, and development.

“We’ve worked with other banks, and this process was super-quick, super-efficient. This was one of those processes where we just moved through in weeks,” said co-founder Travis Turner.

As a Schedule 1 values-based bank, VCIB supports organizations that share a commitment to positively impact the communities where they live and work.

“We always try to do business with like-minded folks,” Alina Turner continued. “As a B Corp business, the values that we have — growth with purpose, reconciliation, inclusion, diversity — seemed to really line up [with VCIB].”

With a line of credit in hand, HelpSeeker hired nearly 50 new staff to expand the organization’s reach across Canada. VCIB’s financing also supported HelpSeeker in adding new datasets to the company’s social policy dashboard, which helped over 200 Canadian municipalities to better target their social spending as the pandemic progressed.

In the last quarter, the platform tracked more than 200,000 unique searches for support, most of which were requests for language interpretation, suicide intervention services, and job search help. Looking into the future, HelpSeeker plans to expand across Canada and put Calgary on the map as a hub for social technology.

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Click here to learn more about HelpSeeker’s services and resources.

Learn more about VCIB’s impact financing in our Business Banking page. If interested in chatting with VCIB about your financing needs, get in touch.

The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances. Customer results may vary. The customer endorsements that appear on this page were solicited by VCIB.

A vast majority of cleaning products available in the Canadian market contain VOCs (Volatile Organic Compounds) which cause indoor air pollution and have been identified as a hazard to human health. What makes matters worse, labelling regulations in Canada allow product manufacturers to provide very little ingredient information to consumers, which makes it very hard to find information of products containing VOCs in the ingredient labels.

Fortunately for Canada, a woman-led chemical company, Voran Group Ventures, is revolutionizing the cleaning industry with B.C and Ontario-made products that are free of VOCs. “We have the ability to make excellent high quality cleaning products within Canada” said Chelsey Reschke, CEO of Voran Group Ventures.“Canadians are currently consuming about 3 and a half billion dollars a year in disinfecting products, and most of it is spent on imported products.”

The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances. Customer results may vary. The customer endorsements that appear on this page were solicited by VCIB.

Prior to her graduation, she spent four months in France polishing her cooking skills to open The Friendly Chef Adventures Inc., a kitchen store, café and culinary studio in Erin, Ontario. The culinary studio gave Fanjoy the opportunity to take a closer look at the impact of nutrition on mental health. Fanjoy had proven that engaging youth with an activity during therapy was highly successful, so it occurred to her to use the kitchen studio as a space to work therapeutically with transitional aged youth from the community, using food as a new tool to create conversations that otherwise may prove difficult.

Fanjoy’s innovative culinary counselling turned out to be very effective at helping people manage their feelings and life challenges, and it provided valuable lessons about the importance of food, nutrition, and coming together over a meal. Seeing the success of culinary counselling, Fanjoy decided to use the Fanjoy brand to formalize her sessions into what’s known now as the Fanjoy Junior Chef Culinary Life Skills Programs.

Shaping a growth strategy

In 2016, Fanjoy wanted to expand her facility’s capacity by moving her business and opening a 30-seat rustic country restaurant in Erin, Ontario. Despite being a business owner in social work for over 20 years, starting a restaurant was considered high risk and Fanjoy struggled to secure financing. Fanjoy’s relationship with Vancity Community Investment Bank (VCIB) began in 2021 after the pandemic hit and her mortgage came due. To support Fanjoy in her expansion plan, VCIB provided a $300,000 loan for mortgage refinancing and a $50,000 line of credit to assist with ongoing working capital requirements.

“VCIB came to the table for me. They listened to what my plan was for the business, they validated the experience I brought to the table. VCIB valued the ingenuity and resourcefulness that I demonstrated during the first year of COVID, and they engaged in conversation with me. It was a very different experience than any conversation I’d had before.”

As Canada’s only values-driven Schedule 1 bank, VCIB’s mission is to finance lasting change by supporting organizations that work towards uplifting their communities. With an 80% retention rate among participants, the new Fanjoy Culinary + Wellness Center has had an immense success in Erin. Looking ahead to a post-pandemic world, Fanjoy is more committed than ever in carrying her vision even further.

“As a chef and social worker, I believe we need a radical recovery from COVID. Human connection is at the core of the Fanjoy brand. Everyone now knows the experience of loneliness if they didn’t before – and we are in a unique position to offer a way of healing moving forward.”

This fall, Fanjoy has plans to expand into the Guelph region. Further into the future, she hopes to see Fanjoy and its culinary counselling programs expand nationally.

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Click here to learn more about the Fanjoy Junior Chef Program.

Learn more about VCIB’s impact financing in our Business Banking page. If interested in chatting with VCIB about your financing needs, get in touch.

The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances. Customer results may vary. The customer endorsements that appear on this page were solicited by VCIB.

With environmental sustainability at the core of its business, this female-led social enterprise uses natural fabrics with the Global Organic Textile Standard (GOTS) such as bamboo, modal, hemp, linen, and organic cotton. The GOTS ensures that these fabrics require minimal pesticides and water for production and are sourced from responsible working conditions.

Up through year-end 2019, the organization only focused on designing and manufacturing women’s clothing made with sustainable fabrics. However, with the onset of COVID-19 and the growing demand for medical isolation gowns for healthcare professionals, CDY’s operations started producing sustainable personal protective equipment (PPE).

“We’re always looking for ways to protect the environment by coming up with new ideas to prevent waste from going into landfills” said Carmina de Young, Founder and CEO. “We recollect the gowns that have already been used by healthcare workers and turn that material into new garments.”

Under the new brand of CY Health, CDY’s sustainable PPE helps fill the shortage of Canada’s domestic supply of medical isolation gowns for healthcare professionals.

“We’re always looking for ways to protect the environment by coming up with new ideas to prevent waste from going into landfills.”

CDY is making a radical change in the industry by becoming the first company in Canada that manufactures sustainable PPE, both disposable and reusable. Last year, the Lifecycle PPE project won a $2 million grant through NGen’s Strategic Supply Challenge. This challenge tested organizations’ use of manufacturing technologies to build sustainable Canadian products in the fight against COVID-19. Since this was a matching fund, to get access to this grant CDY’s team had to provide 50% of the financing.

Motivated by Carmina de Young’s vision, Vancity Community Investment Bank (VCIB) provided a $300,000 loan to help the organization secure the grant.

Expanding Carmina de Young’s team

Before CDY pivoted their operations to produce sustainable medical gowns, the organization was looking to scale back operations, and had reduced the number of sewers down to 5 individuals. Aside from helping CDY secure the grant, VCIB’s financing also helped hire more production workers to increase their manufacturing capacity. The organization now has 35 employees and plans to continue expanding.

The majority of employees hired at CDY are individuals who have faced employment barriers, such as new immigrants, single mothers, and recent college graduates; “We want to create jobs for people who have faced barriers to employment” said Lina Bowden, Partner and CFO. “We’re able to accommodate people with different needs, and have translators present during our training sessions to help our employees that speak little English get the training they need.”

VCIB is committed to supporting organizations that work towards uplifting their community and fight for a green recovery. CDY’s recycling project is not only creating a circular economy but will also decrease solid waste generation at healthcare facilities by 93%.

Furthermore, this project will prevent 11 million pounds of single use plastics from ending in Canadian landfills; “It is estimated that over 40 million pounds of hospital waste from disposable textiles are sent to landfills across Eastern Canada” said Bowden. “We expect that we will be able to divert 11 million pounds of this plastic waste, saving 6.556 metric tonnes of CO2 and 20 million liters of water in the process.”

Learn more about VCIB’s impact financing in our blog.

Read about CDY’s sustainable PPEs here.

The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances.  Customer results may vary.  The customer endorsements that appear on this page were solicited by VCIB.

Owning property can be beneficial for organizations that are comfortable planning for the longer term and have a clear view of their future needs for the space. On the other hand, renting is more appropriate when minimizing short-term costs is important to your business. Leases generally have a lower cost per square foot, but there are other factors that can influence the amount of rent paid. If an organization is growing and has changing space needs, renting can provide better flexibility. Finally, if a non-profit’s space needs are relatively standard then it’s best not to invest in significant building improvements.

Different organizations will have different space requirements, therefore renting might be better than buying depending on the needs of your non-profit. Taking this into account, here are some reasons why non-profits might want to consider owning their space:

Increased stability through financial control

For organizations leasing or renting their space, small year-over-year rent increases can compound to a significant effect. In commercial real estate settings, rent controls are often weak or nonexistent, making non-profits more vulnerable to market conditions. Mortgages, on the other hand, can allow businesses to build value in the form of equity as time passes. When the mortgage is eventually paid off, the organization will have reduced occupancy expenditures and can focus solely on managing operational costs.

In addition to offering greater predictability and control over occupancy expenditures, owning property can offer significant tax benefits to some non-profits. Depending on the use of a facility, non-profits may be exempt from paying property taxes or could be eligible for a 40% tax rebate. Read the Not-for-profits, taxes and exceptions to learn more. Existing landlords that are not exempt from these costs are likely passing these through to non-profit tenants either directly or indirectly in their rent.

Building assets

Besides improving financial stability, owning a building can also help non-profits build a stronger balance sheet. Non-profits are often penalized for accumulating liquid funds when those funds could be spent on additional programming. This creates structural fragility in the sector, even more so for those organizations that rely on year-on-year operations. Conversely, when an organization buys property, it creates a long-term capital asset.

“The cost to acquire or build an office space often flows through the income side of a financial statement,” said Lars Boggild, Senior Manager of Banking and Investments at VCIB. “This allows an organization to build up that asset position over time, in a way that doesn’t feel competitive to other funding sources.”

Additionally, unlike most other assets, property is something that can be borrowed against. This provides an organization with greater financial flexibility in the future; “We’ve had clients during the pandemic that have come to the bank to ask for a line of credit secured against their building, and the bank has agreed because it’s a very reasonable thing to loan against,” said Boggild. “If an organization doesn’t own their space, they’ll be in a very tough spot during a crisis.”

Permanent presence in the community

Owning a permanent space can help a non-profit maintain or establish its presence in the area it is working to serve. A non-profit’s headquarters can serve as a center of activity for its constituents, providing support to target members and acting as an anchor for the community. For many non-profit organizations it is important to be located in a particular area, especially if the beneficiaries they serve live near that location. For those organizations, leasing could pose a real problem if their rent is significantly increased due to gentrification; “One real issue that non-profits face is dislocation. Many non-profits are located in commercial corridors, and these storefront-style locations are the first places to gentrify relative to other parts of the neighborhood,” explains Boggild. “When these locations get gentrified, the non-profit’s rent goes up, forcing them to relocate away from the people they support.”

For the organizations that find themselves in this scenario, owning social purpose real estate might be the only anchor that keeps their business close to their target beneficiaries.

New programmatic possibilities

Owning office space can also create opportunities for new programmatic possibilities and partnerships. A large space can be used in partnership with multiple organizations that serve different aspects of the communities’ needs, such as counseling, drug addiction and family support services. These partnerships can be seen in non-profit shared service spaces and community hubs. Moreover, when businesses decide to buy a space together, they can collaborate better by physical proximity. A larger space also allows an organization to add more rooms customized to its needs, which is more difficult to do as a renter.

The financial security and sense of place that comes from owning property can be a powerful tool for a not-for-profit organization. When non-profits are invested in the location from which they operate, they build place-based power and become important centers of community support. Ownership allows non-profits to realign their priorities and think of new ways to deepen their impact. Making the transition from renter to owner is a big decision, but one that is worth considering if an organization seeks better financial stability and a deeper connection to their community.

Feel free to get in touch with us if you’d like to talk more about different financing options. Here are some additional resources to get informed:

• Lease vs. Buy: Five Questions to Share with Your Board
• ONN’s Nonprofit Registry for Public Benefit Lands
• Community Bonds as a pathway to Community Ownership

Disclaimer: The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances.

“We are going to be there for you,” was the message Tonya Surman and the Centre for Social Innovation (CSI) received when the pandemic first hit, and she was faced with the prospect of closing her doors for the first time ever, to the hundreds of organizations that count on CSI.

On the other end of the line was the CEO of Vancity Community Investment Bank (VCIB), Jay-Ann Gilfoy, who called to see how she could help keep CSI running and serving its members as the reality of COVID-19 sunk in. A year later, Surman — the CEO of CSI — credits VCIB, a subsidiary of Vancity Credit Union, for helping her navigate the tumultuous waters of operating a business during a pandemic.

CSI plays an important role within the world of innovative non-profits and social enterprises in Toronto. It provides shared workspaces, programming and education, as well as networking and mentoring to more than 900 social-purpose organizations. In short, CSI works with organizations passionate about changing the world for the better. Which is why it was more important than ever to stay strong during the pandemic.

When it comes to non-profits and charities, the cards are often already stacked against them, says Surman. When she first launched in 2004, she couldn’t even find a bank that would open an account for her. “The leadership from one of the Big Five banks told me point blank, ‘We don’t want to foreclose on a charity, it would be terrible PR.’ And that’s the truth. They don’t know who we are, how we operate, all they perceive is that we look risky.”

But VCIB has supported CSI from the beginning, says Surman. They not only understand the non-profit sector, but have made it a mandate to support social enterprises in ways other financial institutions don’t. For Surman, that promise didn’t stop when COVID-19 ground businesses to a halt last March.

“Here we are, we have two mortgages with VCIB on our buildings, the pandemic hits, and we have to close our doors to flatten the curve,” says Surman. “All of a sudden, 9 per cent of our members have closed up shop permanently. I’m scared. VCIB, in the face of this global pandemic calls (and asks): ‘Tonya, how are you doing? Are you okay? What can we do to help you and CSI get through this?’”

“We work (together) on a new financial relationship, which then enables me to create a community rent pool and offer it to our hundreds of member organizations. We’ve been able to continue to offer services to our members (in ways) we wouldn’t have been able to if VCIB hadn’t been there. Not foreclosing on us, but checking in and actively problem solving with us!”

“That’s partnership,” says Surman. “This pandemic has proven VCIB has our back, and I could not be more grateful.”

Trish Nixon, VCIB’s managing director of Commercial Impact Banking, says helping partners find solutions to remain operational during the pandemic was a priority, given their mandate as a values-based bank whose aim is to empower organizations that exist to drive positive change.

“Non-profits and social enterprises are by design and definition purpose-driven. We intentionally focus on understanding and financing these organizations because there’s a very clear path to us meeting our own impact objectives,” says Nixon.

Even outside of the pandemic context, these organizations often face difficulties accessing capital and financial services. And not just the big-ticket items like mortgages, but day-to-day products like credit cards and lines of credit too. By designing solutions that meet the needs of charities and non-profits, as well as purpose-driven businesses, VCIB is addressing a market that is often underserved by financial institutions.

“There’s a ripple effect when organizations with shared values and goals work together,” Nixon says. “CSI is a great example of that. They support so many other social enterprises and are exactly the kind of partner we want to help fuel, whether that’s through mortgage financing for their buildings or operating accounts and credit cards. By supporting them, we’re also supporting all of the changemakers they serve.”

For her part, Surman says she is eternally grateful for the partnership VCIB has provided to CSI, and by extension, all the organizations CSI supports.

“We’re building the next economy,” she says. “Especially now, with COVID, there’s a recognition that we need an economy that actually puts people and planet first. It’s going to take leaders that can craft the really meaningful solutions. To be walking side-by-side with other leaders who have the same vision to make a better world … I’m just really proud. It makes me really grateful to have the privilege to serve with so many extraordinary people.”

Learn more about VCIB’s impact financing in our Business Banking page. If interested in chatting with VCIB about your financing needs, get in touch.

Disclaimer: The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances. Customer results may vary. The customer endorsements that appear on this page were solicited by VCIB.

In some ways, Forum’s approach looks like that of a traditional private equity firm. Be agile. Be opportunistic. Focus on opportunities that offer aggressive growth and the impressive returns that have consistently put the firm in the top 5% of alternative asset investors in Canada.

But unlike most of its mainstream peers, Forum has taken the responsible step of integrating purpose into investment decisions across its portfolio. They support socially responsible projects that satisfy do-no harm criteria and actively pursue investments that generate measurable impact, leading to exciting partnership opportunities with Vancity Community Investment Bank (VCIB).

“We’ve always had an appetite for innovation, and we think some of the most exciting opportunities for innovation are with companies and projects that are solving social and environmental problems,” said Duncan Ramage, a Partner at Forum Equity Partners. “That’s where we focus our human and financial capital.”

Partnerships for ‘extraordinary outcomes’

While a desire to do right by their stakeholders has been part of Forum’s DNA from the start, in 2015 the team formally articulated its mission, vision and values around creating ‘extraordinary outcomes’ for all stakeholders including employees, suppliers, communities, shareholders and partners.

For Ramage, achieving those outcomes means working with people who share their vision, and in VCIB he found a values-aligned financial partner capable of helping Forum achieve its social and environmental objectives.

“Right away we knew that the VCIB team was in this for the same reasons we are, but they also bring a certain level of expertise in areas that we’re seeking further growth in, like sustainable infrastructure and affordable housing,” said Ramage. “Their thoughtful underwriting and partnership mindset have helped us identify areas to optimize and add value to our investments.”

The relationship began with VCIB providing financing for a portfolio of more than five hundred Ontario-based residential solar rooftop projects acquired by Forum in 2013 and 2014. That solar portfolio represented Forum’s first foray into renewable energy generation. Since then, the team’s understanding of where it is uniquely positioned to contribute to the net-zero transition has evolved.

“We think some of the most exciting opportunities for innovation are with companies and projects that are solving social and environmental problems.”

“For the most part, technologies like wind and solar are now well-understood by traditional investors,” said Ramage. “We see more opportunity in taking on the innovative or niche deals that other institutional investors shy away from.”

They’ve found a sweet spot in revenue-generating distributed energy infrastructure, for example district geothermal projects that employ the energy-as-a-service model, making clean energy more affordable and accessible for property owners while driving down greenhouse gas emissions.

Through a partnership with Subterra Renewables, a geothermal developer and operator, they’re building low-carbon district energy systems across North America, primarily serving multi-residential properties.

“We are bringing geothermal into the mainstream, but we need to make it an easy and cost-effective choice for property developers and owners,” said Ramage.  “Flexible and thoughtful capital sources like VCIB are exactly what allows us to do that.”

“Right away we knew that the VCIB team was in this for the same reasons we are.”

In addition to that first solar investment, VCIB has now partnered with Forum and Subterra Renewables on financing for multiple district geo-exchange projects for towers and townhouse complexes in the Greater Toronto Area.

Building back better

Forum’s foresight and early shift into investments addressing challenges like climate change and the urban affordability crisis have become more apparent during the pandemic.

“Due to the current situation, private equity firms are having to adjust and identify their best path forward,” said Ramage of the impact COVID-19 has had on many sectors. “Forum’s existing focus on sustainability and established partnerships with mission-driven institutions like VCIB are what equips us to emerge from the pandemic more prepared and resilient.”

Today, VCIB and Forum are looking at new opportunities for collaboration, particularly as Forum increases its focus on green buildings and other energy efficiency technologies.

“We are constantly looking for new and better ways to drive sustainability – as well as other ESG objectives – in our investing and development activities,” said Ramage.

Disclaimer: The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances.  Customer results may vary.  The customer endorsements that appear on this page were solicited by VCIB.

Since launch in 2004, the Toronto-based co-working and acceleration space has positioned their business model for resilience and growth, despite forces that may have had them do otherwise. Over the last two decades, they’ve faced rising commercial rental rates, necessary (and surprise!) renovations needed for their properties, and most recently, the COVID-19 pandemic.

Faced with each obstacle, they’ve tweaked their offerings – each time toward increasingly member-centric, green, and social responses. In the process, they say, they’ve benefitted from a partnership that has helped to take financial stress out of the equation.

“I think there were some banks out there that would have found us to be too edgy – too unusual,” said Raissa Espiritu, CSI’s director of partnerships. “And I’m sure Vancity Community Investment Bank did too! But it never showed. They’ve been with us each step of the way and they’ve always trusted us.”

“It allowed us to really focus on building the Next Economy and continually pushing our mission and vision out there.”

Over the last seven years, Vancity Community Investment Bank (VCIB) has provided CSI with a mortgage, a line of credit, mortgage refinancing and two grants. VCIB’s first office was based out of the organization’s co-working space. And VCIB’s CEO, Jay-Ann Gilfoy has been an advisor to CSI on its real estate strategy.

It’s not your average bank relationship, but that’s just the way CSI likes it.

“They have our back,” said Espiritu.

Protecting Members from Rising Rents: More than a Mortgage

In Toronto, commercial lease rates have increased nearly sixty percent over the last seven years. For CSI’s members – social entrepreneurs, non-profits, and charities – paying sixty percent more for their co-working space just wouldn’t be a possibility.

“We wanted to own our own building,” said Espiritu, “because when you own, you can set all the rental rates, all the lease rates, all the membership rates.”

“Many of our members are immigrants, newcomers and racialized people, some of whom are low-income. We can’t set rates high, like other co-working spaces. We needed it to be affordable.”

To help support their members, CSI hatched a plan to purchase and renovate an old print factory in the heart of Toronto’s Chinatown, and to transform it into a 64,000 sq. ft. co-working space. To make it happen, they looked to their community and to VCIB.

The non-profit solicited investment from individual investors through the use of Community Bonds, a ground-breaking fundraising model of their own invention, and their members and supporters bought in. For some, it was the first time they’d ever invested in anything.

Alongside, VCIB provided CSI with an initial mortgage to finance the purchase of the building. And in 2017, they provided a mortgage increase to allow for the renovation of the properties’ third and fourth floors. This enabled CSI to move out of a rented space – 215 Spadina.

“With rent going up – I don’t know if it would have been feasible. I don’t know if CSI would have been able to continue if we’d had to continue to lease,” said Espiritu.

Bouncing Back from COVID-19 Together

In early 2020 when the pandemic struck, VCIB and CSI found common purpose once again.

“When the pandemic struck, many of our members found themselves with little to no revenue –unsure whether they’d make it through the crisis,” said Espiritu.

To help community members who were hit hardest, CSI developed a Community Rent Pool, inviting members to chip in, as they were able. “Those who could pay did,” said Espiritu, “and for those who couldn’t – it was okay.”

Alongside, CSI offered members tools for navigating the pandemic, like a guide on accessing the Canada Emergency Response Benefit (CERB) and additional ‘Social Entrepreneurship 101’ workshops. To cover the cost of this expanded support, CSI reached out.

“VCIB gave us $50,000 to allow us to continue to provide programming to those who were most affected by COVID-19 and to ensure that they could continue to develop their ideas,” said Espiritu.

“That was our single biggest gift to that fund.”

Building the Next Economy Through Financial Security

Since establishment, CSI has been home to over 5,000 ventures, non-profits and charities, incubated over 1,700 new social enterprises, and helped to create over 500 new jobs. Today, the organization owns two commercial buildings in downtown Toronto – worth over $45 M.

“This is a financial access story,” said Espiritu. “That we were able to get people to join us so that we could free ourselves and our members and be able to set the rates that we want.”

As the team and their members work to build the next economy, for Espiritu, the goal is “to prove that solutions for a people and planet-first economy already exist.”

“Now we need to continue to invest money and time in making those things happen.”

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“VCIB sees a critical opportunity to support businesses and organizations building more resilient, local and sustainable food and agriculture systems,” says VCIB CEO Jay-Ann Gilfoy. “This credit facility developed with AgriRoots gives the bank a new way to work toward our vision of financing a sustainable tomorrow.”

Access to capital is one of the primary challenges facing small farmers and AgriRoots is one of just a few lenders in Canada that provides financing to small to mid-size farms. The transaction with AgriRoots comes at a time when some small farmers are struggling to stay in business, contributing to a trend towards a concentration of farmland in the hands of a few industrial-scale producers.

“We know that supporting domestic small farms both enhances our national food security and provides benefits to our rural communities,” said Vince Gasparro, VCIB’s Managing Director of Corporate Development and Clean Energy Financing. “We’re pleased to partner with AgriRoots to provide financing options that will not only support domestic food supply chains at a challenging time but will also help small-scale farmers improve the sustainability of their operations.”

In keeping with VCIB’s vision and values, the loans will target small farms seeking loans to support sustainability upgrades – for example, through the purchase of energy-efficient equipment – as well as farms dealing with the challenges of intergenerational farm transfer.

“AgriRoots was established to support Canada’s agricultural sector with financial resources to catalyze their growth and sustainability,” said Robb Nelson, CEO of AgriRoots. “We’re delighted to work with VCIB to reinforce our presence in the sector, and to the benefit of many Canadian farmers and their families.”

Loans will undergo both AgriRoots and VCIB credit approval processes. This structure allows VCIB to benefit from AgriRoots’ deep expertise in agricultural lending while ensuring that each transaction meets VCIB’s standards for due diligence and values alignment. Businesses engaged in activities deemed unethical by the bank will not be eligible for financing.

Media Contacts

Monica McClusky, VCIB
vcib@yulupr.com

Robb Nelson, AgriRoots
robb@agriroots.ca

About Vancity Community Investment Bank (VCIB)

VCIB is an Ontario-based schedule 1 federally chartered bank and a subsidiary of Vancouver City Savings Credit Union. As Canada’s first values-driven bank, VCIB provides banking, investing, and financing solutions, to help purpose-driven businesses and organizations thrive, grow, and foster change. Additionally, VCIB offers specialized financing solutions for social purpose real estate and clean energy projects.  VCIB is a certified B Corporation and a member of the Global Alliance for Banking on Values. For more information, visit vcib.ca, tweet us at @BankVancity and connect with us on LinkedIn.

About AgriRoots

AgriRoots Capital Management Inc. has been created to build and manage a suite of investment opportunities in the agriculture space. The founders of AgriRoots have a strong track record in the alternative lending, investment & agriculture industries and bring this unique skill set to bear in creating a leading agriculture focused investment firm. For more information, visit https://agriroots.ca/.