We have up to $32 million available to invest in Social Enterprises and Affordable Housing. Currently we are open to considering individual loans up to $5 million.

Our interest rates are typically in line with the Bank of Canada’s Investment Rate.

Currently, most of our loans are term loans. However, we are interested in working with our clients to come up with a solution that works best for you.

Foundation staff will thoroughly review the proposal, the organization and the management team behind it. If we are satisfied all the information is complete and the answers are sound, a proposal will go to the our Social Finance Committee for review, then to our Board for final approval. If approved, a letter of offer will be made. Timing will vary as we need to have all the information and understanding from you to proceed.

It’s not a requirement, but it is a good idea. You will be considering substantive legal documents, perhaps more complicated than any you have encountered before, and that you may be committing your organization to live with for years to come.

If you decide not to use a lawyer, LCF can arrange for our clients’ final document signing to be handled by our lawyer, who will ensure that all necessary copies and affidavits are correctly prepared. Please contact Vijay Venkatesan, our VP of Finance and Operations, for details.

Affordable housing is defined by CMHC as rental housing that is at or below 80% of the Median Market Rent in a community. Beyond this however, LCF also seeks to invest in rent-geared-to-income deeply affordable housing with integrated support services for those who need them, which is based on ODSP shelter rates.

We offer early stage financing for:

• Project planning

• Re-zoning

• Land acquisition

• Site development

• Interim construction financing

• Organization costs

• Incorporation

The project must be in Southwestern Onario and lending must be directly attributable to the creation of an affordable housing project (i.e. no training, education, proof of concept research etc.)

At this time, LCF is committed to providing low-interest loans. There are, however, other communities in Canada and elsewhere, that are creating some innovative affordable housing. If there are builders or nonprofit organizations interested in unique or innovative ideas, then we are interested in listening. Of course, any expansion beyond the current social finance loan program would require the approval of the LCF Board of Directors.

Having safe, secure and affordable housing is the foundation to building a successful life. Until people have decent housing, it is almost impossible for them to successfully deal with other issues in their lives, be that responding to the special needs of their children or dealing with mental health or addition issues.

There are many definitions of social enterprise, however one of the most straightforward definitions is that of the Canadian Task Force on Social Finance in their 2010 report, Mobilizing Private Capital for Public Good.

"Social enterprise is defined as any organization or business that uses market-oriented production and sale of goods and/or services to pursue a public benefit mission. This covers many organizational forms – ranging from enterprising charities, non-profits and co-operatives to social purpose businesses, which are for-profit businesses designed to fulfill a social mission."

The goal of our Social Impact Fund is to strengthen entrepreneurship in London’s social enterprise sector, primarily through financial investments. We want to work with non-profit organizations, as we recognize that many non-profits have difficulty securing financing from the traditional lending industry.

Our mandate allows the Social Impact Fund to accept a greater degree of risk than a traditional lending agency, and to be more patient in our repayment terms. This doesn’t mean that LCF will not employ the same level of rigour in accessing the potential of proposals for financing – We are as determined as any lending institution to have each and every loan repaid within the agreed-upon terms. The long term viability of LCF's Social Impact Fund depends on our loans being repaid – with interest.

We consider all the costs of making your enterprise work, though typically we’re unable to fund salary costs.