Vancity and Groundswell has developed accessible microfinancing of up to $15,000 for Groundswell students and alumni to cover program tuition or small business start-up costs.
Money is a big barrier to many of us who want to explore the route to self employment, small business ownership, or founding a non-profit or other community organization. We are lucky enough to have a credit union in town who understands that having a lack of access to funds simply means that first step can be our of reach.
How does it work?
- Let us know you are interested in financing for either Groundswell EXPLORE, BUILD or TEST MARKET tuition or for start-up costs related to your social venture.
- Complete the short and simple loan application with help from us at Groundswell.
- Together we assemble the required documents and send the loan to our contact at Vancity for review.
- Upon approval, you will be asked to attend a Vancity branch in your neighbourhood to open an account and sign the loan documents. The loan is either transferred directly to your account (start-up financing) or to Groundswell (tuition fees).
When do I have to pay the money back?
A payment schedule will be created with you taking your budget and entrepreneurial plans into consideration. Normally the repayment is done over five years with a set payment every month. If you would like to pay the loan back earlier, that’s ok too!
How much are monthly payments?
The payments will be the same amount every month and depends on the interest rate and amount you borrow. For example, a five year loan for $15,000 will have a payment of about $300 per month. Please consider using this loan calculator to see how much your payment could be on the amount you wish to borrow.
What is the interest?
Prime + 3% (for example, prime was 3.45 in April 2018)
Are there any other costs associated with the microloan?
No. There is no application fee, or prepayment penalty. You can pay off the loan anytime.
Will this affect my credit rating?
Groundswell microloans are designed to improve your credit rating, not damage it, so they are normally spread over 12 to 60 months depending on your budget. It is our goal to support you in creating good financial stability for yourself. If you find yourself struggling with your payment, your credit rating could be negatively affected, so please come and speak with us.
Indicate that you're interested in microfinancing when you apply for any Groundswell program, or get in touch with us directly using the form below: