Access to Capital
Community Economic Development Investment Funds provide businesses simple, regulated and cost efficient access to capital. Used for the purposes of buying what is needed to produce products or provide services, capital is the lifeblood of entrepreneurs, businesses and economic growth but access to capital is also one of the biggest hurdles in the life cycle of a business. Under the CEDIF program, defined communities can develop products and services that require substantial capital during the preliminary stages of business’ life cycle as well fund expansion, acquisition or other business investments through subsequent share offerings.
The cash investment that debt holders and shareholders make in a company comes at a cost. When an organization issues debt, at the risk of default, it makes a commitment to repay the amount owed in addition to paying interest. The cost a borrowing is, at times, prohibitive. Similarly, the direct and indirect costs of issuing shares for sale on a stock exchange are exceedingly high. The CEDIF program provides a lower cost alternative by permitting private share sales in accordance with an exemption under securities legislation.