"The sky is the limit for me and my business." - Trena
- What is the minimum that someone can lend?
The minimum amount that can be lent to you an entrepreneur is $250. There is no maximum.
- How is someone approved to receive a loan?
All borrowers are required to work with the Director of Training an Entrepreneur Support to complete the application, which includes a budget and business plan (entrepreneur loans). This process can take anywhere from 2-6 weeks. Once the application is complete the Director of Training and Entrepreneur Support will forward it our Loan Committee, which makes the final loan decision.
- Who is on the loan committee?
The loan committee has three members of the board and a volunteer member of the community.
- What is the risk rating and how is the risk of each loan assessed?
Community Micro Lending’s (CML) Risk Rating is designed to inform lenders of the quality of loan in which they are investing. A ‘4-Star’ risk rating is used, with a 4-Star loan considered to be of minimal risk, and a 1-Star loan considered to be high risk. The risk rating is assigned only after the Loan Committee has approved the loan.
- What is the default rate?
Since inception in 2009, Community Micro Lending has made 30 loans. 2 of those loans have defaulted.
- How are the loans made?
You can make a loan online using your credit card. If you prefer to send a cheque, please send it to 202-2610 Douglas Street, Victoria, BC, V8T 4M1
- Who assumes the risk of the loan?
The lender assumes the risk of the loan. We repay to the lender their portion of the principle and interest that is repaid to CML. If CML does not receive payments, the lender will not be repaid.
- What is the interest agreement?
The lender receives 2% annual interest on the outstanding principal. Borrowers who receive training loans are charged 7%, while borrowers who receive entrepreneur loans are charged 10%.
- How does repayment work?
Repayments to lenders are made in one advance at the end of the loan term. At this point, the lender receives their portion of the principal and interest that has been repaid.
- Can I lend to multiple entrepreneurs?
Yes, there is no limit to how many loans you would like to contribute to. We do however encourage lenders to spread their investment across multiple entrepreneurs as oppose to contributing to just one loan in order to minimize the risk.
- Will I receive updates on the loan progress?
Yes. We will provide you with updates on a semi-annual basis.