365 Bay St. Suite 600 Toronto Ontario M5A 2V1 Tel: (416) 362-9670 Fax: (416) 362-0769
HONOURABLE MENTION FOR 1995
Calmeadow Nova Scotia was created by Calmeadow in July 1994, to assist communities across the province to establish their own micro-loan funds. Building on Calmeadow's leading experience in the province's South Shore area, Calmeadow Nova Scotia offers a private sector vehicle for community economic development on a provincial level.
Working in partnership with the Royal Bank of Canada and other corporate sponsors while benefiting from strong local volunteer leadership, Calmeadow Nova Scotia has developed a mechanism for community organizations to establish their own micro-loan funds.
Each community organization interested in setting up a "member" loan fund is responsible for forming a volunteer Management Board consisting of individuals from the community. It must also raise a guarantee equal to 10% of the total loan availability, hire and provide partial funding for a loan administrator, and provide the resources necessary to locally promote the loan fund.
Calmeadow Nova Scotia provides both technical and financial support. Its technical support services range from on-site training sessions to providing operational manuals and videos.
Calmeadow's financial support guarantees 40% of the loan fund and provides a "match" for funds to support the loan fund administrator.
Royal Bank of Canada works in partnership with the loan fund in each community, not only as the exclusive lender, but also to provide loan adminstration systems for efficiency and positive banking relationships for its clientswho may eventually "graduate" to the formal banking level. The bank's strong support of Calmeadow Nova Scotia stems from its desire to help revitalize the province's enconomy, which ultimately benefits the bank's own business.
Loans of up to $5,000 are disbursed using the peer group lending method, in which clients form borrowers' groups whose members vouch for each other's ability to repay the loans they receive. Peer support replaces the need for traditional forms of collateral.
